This week's TGIF considers the decision in
Aardwolf Industries LLC v Riad Tayeh
[2020] NSWSC 299, in which the Supreme Court of New South Wales
refused an application for leave to sue court-appointed liquidators
for damages for negligence and misleading and deceptive
conduct.
Background
On 8 August 2011, liquidators were appointed to Herdgraph Pty
Ltd and Aardwolf Pty Ltd (Companies), pursuant to
a court order. As part of the winding-up process, the liquidators
sold the Companies' trademarks to Mr Nguyen, a competitor of
the two companies.
The plaintiffs were entities related to the Companies, with all
four companies sharing directors. The plaintiffs sought to bring
actions in negligence and misleading and deceptive conduct against
the liquidators, on the basis that the Companies had abandoned the
trademarks and ownership over them had passed to the plaintiffs.
Thus, the Companies had no right to sell those trademarks. This
proceeding involved the application
