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[2022] WASC 376
Supreme Court of WA
2022-11-10
Allanson J
Original judgment source is linked above.
AED Oil Ltd v Puffin FPSO Ltd (2010) 27 VR 22; [2010] VSCA 37
CPB Contractors Pty Ltd v JKC Australian LNG Pty Ltd [2017] WASC 112
CPB Contractors Pty Ltd v Rizzani De Eccher Australia Pty Ltd [2017] NSWSC 1798
Green v Econia Pty Ltd [2016] SASC 153
WCX M4-M5 Link At Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd (No 2) [2022] NSWSC 505
This Schedule 4 does not prevent either Party from seeking urgent interlocutory or declaratory relief from a court of competent jurisdiction where, in that Party's reasonable opinion, that action is necessary to protect that Party's rights.
First, that the relief was in fact urgent, a matter to be determined objectively. Secondly, that the party claiming the relief form the reasonable opinion that the relief was necessary to protect that party's rights.[2]
(1) Is the relief sought in the proceedings properly characterised as 'declaratory relief' where the prayer for relief is not so confined and the applicant also seeks orders 'giving effect to' the declaration?
(2) Is the action for declaratory relief urgent?
(3) Did PWC in fact form the opinion that the relief sought was necessary to protect its rights?
(4) Did PWC reasonably form that opinion?
(5) In forming that opinion, is it necessary that PWC considered the comparison between resolution in the court and in arbitration?
(6) What are the rights PWC sought to protect? Are they rights or simply a commercial or governmental position.
(7) The effect of delay in bringing proceedings on whether the action should be held to be urgent, and whether PWC has reasonably formed the opinion that the action is necessary to protect its rights.
(1) Two affidavits of David Ashley Jenaway, lawyer, sworn 16 September 2022 and 27 September 2022; and
(2) The affidavit of Ernest Frank Oliver Delfos, Director and Managing Director of Exploration and Production Activity of Eni, sworn 27 September 2022.
(1) The affidavit of Antoni Simon Jon Murphy, Executive General Manager of the Gas Services Division of PWC, sworn 16 September 2022;
(2) The affidavit of Alistair John Kent Trier, Chairman of the Gas Task Force for the Department of the Chief Minister and Cabinet in the Northern Territory Government, sworn 22 September 2022;
(3) The affidavit of Dean Edward Grondal, lawyer, sworn 22 September 2022; and
(4) The affidavit of Charles Staples, Commercial Manager of the Gas Services Division of PWC, sworn 29 September 2022.
(a) Eni will supply Gas to PWC to meet PWC's Daily Nomination during the Supply Period (cl 8.1).
(b) By cl 15, in the event of a curtailment, interruption or suspension to the delivery of gas to PWC (defined as a Curtailment), Eni must, among other things:
(i) within 6 hours, give written notice providing reasonable details of the reason for the Curtailment and its likely duration (cl 15.3(c));
(ii) within 24 hours, provide written particulars of an assessment of the cause of the Curtailment and the delivery capacity of the Seller's Facilities (if any) likely to be available during the Curtailment (cl 15.3(d)); and
(iii) update the notices given under clauses 15.3(c) and (d) whenever there is a material change (cl 15.3(e));
(c) PWC may inspect, or nominate a third party to inspect, Eni's records to confirm the accuracy of any information provided to PWC under clause 15, upon reasonable notice, for at least two years from the end of the year to which the records relate (cl 15.5).
Any dispute, controversy or claim (Dispute) arising out of or relating to this Agreement or the breach, termination or claimed invalidity of this Agreement must be dealt with in accordance with Schedule 4.
(a) Item 1.3 prescribes a dispute resolution procedure with written notice of the Dispute and meetings between representatives of the parties to discuss the Dispute with the aim of resolving it, and, if it is not resolved, referral to negotiation by senior executives.[5]
(b) If the senior executives are unable to resolve the dispute, or they do not convene, then either party may refer the Dispute to determination by an independent expert under item 3 (if the dispute is of a financial or technical nature or if the parties otherwise agree), or to arbitration under item 4 (in any other case).[6]
(c) If the Dispute is referred to arbitration, the arbitration is to be conducted in accordance with item 4.[7] The arbitration is to be conducted in accordance with the Australian Centre for International Commercial Arbitration Rules.[8] The arbitration is to be private and confidential.[9]
denying the request [for inspection] on the basis that it was variously: (a) overbroad; (b) related to the second Force Majeure notice and not the Curtailment; (c) related to the slide deck provided with the commercial meeting held on 21 December 2021[18] and not the Curtailment; and (d) was out of time.
(i) The cause of the Curtailment is an event or circumstance of Force Majeure. Eni confirms that it provided full particulars of its current knowledge of the event or circumstance of Force Majeure at a meeting between the parties dated 14 December 2021. Eni has also provided PWC with the slide presentation that was given at that meeting. Eni relies upon, but does not repeat in full, the detail of that meeting and presentation in this notice.
(ii) As Eni explained in its Curtailment notice dated 22 April 2021, [redacted]. Eni also explained that investigations were ongoing and that further particulars would be provided.[29]
A considerable amount of planning and logistical work is therefore required to deal with the Curtailment, depending on the nature of the issue and how serious it is. We therefore need to confirm, now, the information provided by Eni so that we can properly plan to take appropriate steps of mitigation in order to meet our obligations downstream, and work out the costs exposure and how this will be covered. Immediate action is necessary to protect PWC's position with respect to its customers and stakeholders.[37]
To put the matter beyond any doubt, I confirm that PWC has given due consideration to its rights in relation to the [Gas Sale Agreement] including its right to inspect and verify the information provided by Eni about the Curtailment, and what it must do to protect those rights. PWC formed the opinion that it was necessary to seek an urgent declaration from this Honourable Court to protect its rights because:
(a) this provides the most direct and clear path to a resolution of the issue over the inspection of Eni's record;
(b) there is an urgent need to conduct the inspection because of its impact on the capacity of PWC and the Northern Territory Government to plan and undertake steps of mitigation. I understand that Mr Murphy has provided an affidavit explaining this urgency; and
(c) PWC fears there would be time lost in, or challenges made in, an arbitration procedure.[43]
The practice, procedure and interlocutory processes of the Court shall have as their goal the elimination of any lapse of time from the date of initiation of proceedings to their final determination beyond that reasonably required for interlocutory activities essential to the fair and just determination of the issues bona fide in contention between the parties and the preparation of the case for trial.
The prayer for orders to give effect to the declaration
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
CITATION : POWER AND WATER CORPORATION -v- ENI AUSTRALIA B.V [2022] WASC 376 (S)
Costs - Where proceedings stayed and parties referred to arbitration - Whether court should order indemnity costs or make special costs order
Practice and procedure - Order restricting access to documents on court file to protect confidential information - Partial redaction of prescribed reasons for judgment
Australian Maritime Systems Ltd v McConnell Dowell Constructors (Aust) Pty Ltd [2016] WASC 52 (S)
Ben-Pelech v Royle [2020] WASCA 168 (S)
Crawley Investments Pty Ltd v Elman [2014] WASC 233 (S)
David Syme & Co Ltd v General Motors-Holden's Ltd [1984] 2 NSWLR 294
Flotilla Nominees Pty Ltd v Western Australian Land Authority [2003] WASC 122 (S); (2003) 28 WAR 95
Gypsy Jokers Motorcycle Club Incorporated v Commissioner of Police [2008] HCA 4; (2008) 234 CLR 532
Huntingdale Village Pty Ltd v Korda [2015] WASCA 101 (S)
Roy Hill Holdings Pty Ltd v Samsung C&T Corporation [2015] WASC 458
Swansdale Pty Ltd v Whitcrest Pty Ltd [2010] WASCA 129 (S)
The Pilbara Infrastructure Pty Ltd v Brockman Iron Pty Ltd [No 2] [2014] WASC 345 (S)
Yara Australia Pty Ltd v Oswal [2012] WASCA 264
(1) What should be the proper order for costs; should costs be ordered on an indemnity basis or should the court make a special order for costs.
(2) Should specified passages in my draft reasons for decision be redacted before publication to avoid publication of information which is commercially sensitive and confidential to the parties.
(3) Should an order be made restricting the access of persons who are not parties to the application to documents on the court file, again for the purpose of protecting information which is confidential.
This Schedule 4 does not prevent either Party from seeking urgent interlocutory or declaratory relief from a court of competent jurisdiction where, in that Party's reasonable opinion, that action is necessary to protect that Party's rights.
(1) for the reasonable time spent in preparation of the affidavits it filed and read in the hearing;
(2) for attendance of a senior practitioner instructing at the hearing;
(3) for up to four days for the preparation by counsel for the hearing, including the preparation of written submissions;
(4) for senior counsel and second counsel; and
(5) an uplift of 50% on the hourly and daily rate of senior counsel, but there otherwise be no order with regard to the rates of practitioners engaged in the application.
(a) the Statement of Claim, filed by the plaintiff on 9 September 2022;
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> (b) the affidavit of David Ashley Jenaway, sworn 16 September 2022;
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> (c) the affidavit of Antoni Murphy sworn 16 September 2022;
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> (d) the affidavit of Dean Grondal sworn 22 September 2022;
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> (e) the affidavit of Alister Trier sworn 22 September 2022;
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> (f) the affidavit of Ernest Delfos sworn 27 September 2022; and
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> (g) the transcript of hearing on 29 September 2022.
(a) redactions be applied to the draft reasons for judgement provided to the parties on 4 October 2022 (Draft Reasons) in the form of Schedule A to these orders, on the ground that such redactions are necessary to obscure information contained in the Draft Reasons which is confidential to the defendant, Eni Australia B.V.;
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> (b) a copy of the draft reasons as so redacted be published in final form, and be made publicly available;
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> (c) the Draft Reasons are not to be available for access or inspection by any person or class of persons except the Court and the parties to the proceedings;
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> (d) any application for access or inspection concerning the Draft Reasons is to be referred to the managing judge with not less than 5 business days' notice thereof to the provided to the solicitors for the parties.
Other documents and the application under Order 67B
(1) The nature of the proceedings: the application by Eni was responsive to the claim brought by PWC and the application before me was solely for the purpose of requiring PWC to abide by the dispute resolution procedure set out in sch 4 to the Gas Sale Agreement. By the application, Eni sought to ensure that the dispute was resolved in a confidential arbitration.
(2) The nature of the information, including the terms of confidential agreements and technical information exchanged between the parties in the course of their relationship under the agreement.
(3) While information has already been deployed in open court, the orders would not limit the use of what was said in court, but are directed solely to access to documents.
(4) It remains open to someone seeking access to the documents to apply to the court. The orders do not take that away but control access until any dispute about access can be determined by a judge.
(5) With very minor redactions, the reasons of the court, which detail the dispute and explain the decision, will be published.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] CPB Contractors Pty Ltd v JKC Australian LNG Pty Ltd [2017] WASC 112 [37]; see also Green v Econia Pty v Ltd [2016] SASC 153 [23]; CPB Contractors Pty Ltd v Rizzani De Eccher Australia Pty Ltd [2017] NSWSC 1798 [105], [119], WCX M4-M5 Link At Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd (No 2) [2022] NSWSC 505.
[2] AED Oil Ltd v Puffin FPSO Ltd (2010) 27 VR 22; [2010] VSCA 37 [27]; Green v Econia Pty Ltd [2016] SASC 153.
[5] Sch 4, item 1.3(a), 1.3(b) and item 2.
[18] The correct date of the meeting is 14 December 2021.
[19] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 6.
[20] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 7.
[21] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 8.
[22] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 9.
[23] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 11.
[24] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 12 and AM 13.
[25] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 14.
[26] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 15.
[27] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 16.
[28] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 17.
[29] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 17.
[30] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 23.
[31] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 25.
[32] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, AM 35.
[33] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [34].
[34] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [36].
[35] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [40].
[36] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [43].
[37] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [45].
[38] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [48] - [49].
[39] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [51].
[40] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [54].
[41] Affidavit of Antoni Simon Jon Murphy, sworn 16 September 2022, [54].
[42] Affidavit of Charles Staples, sworn 29 September 2022, [8].
[43] Affidavit of Charles Staples, sworn 29 September 2022, [99].
[44] Affidavit of Alister John Kent Trier, sworn 22 September 2022, [10].
[45] Affidavit of Alister John Kent Trier, sworn 22 September 2022, [11(f)].
[46] Affidavit of Ernest Frank Oliver Delfos, sworn 27 September 2022, [10].
[47] Affidavit of Ernest Frank Oliver Delfos, sworn 27 September 2022, [31].
[48] Affidavit of Ernest Frank Oliver Delfos, sworn 27 September 2022, [32] ED 7.
[49] Affidavit of Dean Edward Grondal, sworn 22 September 2022, [15] - [19].
[50] Affidavit of Dean Edward Grondal, sworn 22 September 2022, [28(c)].
[51] Second affidavit of David Ashley Jenaway, sworn 27 September 2022, [5] - [6].
[52] Second affidavit of David Ashley Jenaway, sworn 27 September 2022, [10].
[53] Affidavit of Dean Edward Grondal, sworn 22 September 2022, DEG 9.
[54] Affidavit of Antoni Simon Jon Murphy, sworn 16 Sept 2022, AM 14.
[55] Affidavit of Antoni Simon Jon Murphy, sworn 16 Sept 2022, AM 17.
[57] Affidavit of Antoni Simon Jon Murphy, sworn 16 Sept 2022, [6] - [7].
[58] Affidavit of Antoni Simon Jon Murphy, sworn 16 Sept 2022, [54].
[59] Australian Maritime Systems Ltd v McConnell Dowell Constructors (Aust) Pty Ltd [2016] WASC 52 (S) and Roy Hill Holdings Pty Ltd v Samsung C&T Corporation [2015] WASC 458.
[60] See, for example, Swansdale Pty Ltd v Whitcrest Pty Ltd [2010] WASCA 129 (S) [10], Yara Australia Pty Ltd v Oswal [2012] WASCA 264 [33], Huntingdale Village Pty Ltd v Korda [2015] WASCA 101 (S) [11] ‑ [17].
[61] Ben-Pelech v Royle [2020] WASCA 168 (S) [7].
[62] Flotilla Nominees Pty Ltd v Western Australian Land Authority [2003] WASC 122 (S); (2003) 28 WAR 95 [43].
[63] Crawley Investments Pty Ltd v Elman [2014] WASC 233 (S); The Pilbara Infrastructure Pty Ltd v Brockman Iron Pty Ltd [No 2] [2014] WASC 345 (S).
[64] Flotilla Nominees Pty Ltd v Western Australian Land Authority [2003] WASC 122 (S); (2003) 28 WAR 95 [22].
[65] Paragraph 1 of the proposed orders is not relevant here.
[66] Gypsy Jokers Motorcycle Club Incorporated v Commissioner of Police [2008] HCA 4; (2008) 234 CLR 532, 596 [185], citing David Syme & Co Ltd v General Motors-Holden's Ltd [1984] 2 NSWLR 294, 300G ‑ 301A.
AED Oil Ltd
Puffin FPSO Ltd
(2010) 27 VR 22
(2008) 234 CLR 532
(2003) 28 WAR 95