(b) The Common Law Jurisdiction, DCA, s 44
- Mr Jaeger also relied on s 44 of the DCA. His argument was based upon the circumstance that the loans were for the purpose of investment, and that was properly to be described as a "commercial transaction" under the former rule Pt 14 r 2. That rule provided that, generally, proceedings that arise out of a commercial transaction are assigned to the Commercial Division.
- Although the Bank argued to the contrary, I accept that loans for investment purposes may well be a "commercial transaction" within the meaning of that phrase in Pt 14 r 2. But there are two other difficulties for Mr Jaeger.
- The first is that the applicability of Pt 14 r 2 to the jurisdiction of the District Court is not well established. Statements to that effect in my judgment in Sapphire Suite Pty Ltd v Bellini Lounge Pty Ltd [6] were clearly obiter observations, [7] and the authority of Parker J's decision in The NTF Group Pty Ltd v PA Putney Finance Australia Pty Ltd [8] must be weighed against the contrary Court of Appeal authorities [9] which deal with the jurisdiction issue, although do not refer to Pt 14 r 2.
- Even more significant, jurisdiction is a question that must be found at the outset. [10] As the Court of Appeal dismissed the appeal by Mr Jaeger, the Court of Appeal has implicitly found jurisdiction, especially given that an appeal is by way of re‑hearing. [11] As a matter of substance, the force of the Court of Appeal's decision is unaffected by whether the Court merely dismissed the appeal (as occurred in this case), or made orders to the same effect as the orders made by the District Court. In either case, the orders and judgment have the imprimatur of a Court of Appeal finding and the principle of stare decisis precludes me from making a contrary finding.
- Whatever may be said about Pt 14 r 2 and its ambit, the effect of the Court of Appeal's decision is to find jurisdiction in this case.
- In case I am wrong, I make the following brief comments on the other issues.