LEAGUES, CLUBS HAD MUTUAL TRUST : QC
LEAGUE SUPER FEDERAL
By Bruce Walkley of AAP
SYDNEY, May 31 AAP - The relationship between the New South
Wales and Australian Rugby Leagues and their clubs was a healthy
mixture of self-interest and common benefit, the Federal Court
heard here today.
Bob Ellicott QC, continuing submissions to a full bench of the
court at the hearing of an appeal by News Limited against a ban on
its proposed Super League competition, said this was a clear
indication that the relationship was based on mutual trust and
"At the heart of the relationship of the league and the clubs is
a mutual trust that each is pursuing the common purpose," he said
in advancing the leagues' argument that they and the clubs owed
fiduciary obligations to each other, which some clubs had breached
by trying to join Super League last year.
"Each of the participants' contribution to the generation of
communal goodwill and revenue, and each of the participants'
acquiescence in each participant receiving its share of that
communal goodwill and revenue, is appropriate because each
participant can be trusted to act in the common interest.
"The clubs place ultimate trust in the league deciding their
futures in exercising the annual admision power.
"The league places ultimate trust in the clubs in admitting them
and thereby giving them voting control of the league."
The appeal is being heard by Justices John Lockhart, John von
Doussa and Ronald Sackville. AAP bzw/ij
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