The Joinder ApplicationS
5 Applications made for the joinder of parties to the appeal/cross-appeal after the hearing of the appeal are relevant to the recusal application (ground (c)).
6 On 21 September 2015, I heard two interlocutory applications, one filed by Mr Christian dated 31 August 2015 (the Christian application) and one filed by the first to fourth respondents (together Nestlé) dated 18 September 2015 (the Nestlé application). Each application sought the joinder of certain parties to the appeal/cross-appeal, broadly speaking on the basis that, pursuant to r 9.09(2) of the Federal Court Rules 2011 (Cth), they were parties interested in, or affected by, the appeal and cross-appeal.
7 At the hearing, Mr Christian sought leave to amend the Christian application. He had originally sought to join Vitaco Holdings Limited. The amendment was to name Vitaco Health Australia Pty Ltd (Vitaco Health Australia) and Health Foods International Limited (Health Foods) as the parties to be joined as respondents/cross-appellants. I note in passing that there was no evidence that either of those parties consented to be joined.
8 On the Nestlé application, I made an order that the party to be joined was Vitaco Health IP Pty Ltd (Vitaco IP). Joinder was sought by Nestlé on the basis that Vitaco IP was the purchaser, pursuant to an intellectual property transfer agreement dated 14 September 2015, and the legal owner, pursuant to a trade mark assignment deed dated 21 September 2015, of Australia Registered Trade Mark Numbers 563325, 563326, 563327, 835451 and 1172510 (MUSASHI Registered Marks) the subject of the appeal/cross-appeal. Vitaco IP had not yet lodged an application with the Registrar of Trade Marks for recordal on the Register of Trade Marks but I was informed that lodgement would take place as soon as reasonably practicable.
9 It is helpful to set out the chronology of a number of transactions:
Nestlé Australia Ltd was the authorised user of the MUSASHI Registered Marks in Australia until 1 October 2014. On 1 October 2014, Nestlé Australia Ltd transferred to Post Foods Australia Pty Limited (Post Foods) all of its rights, title and interest in all claims, causes of action and choses in action in connection with and all other rights exclusively related to the business development, manufacturing, marketing, distributing, and/or selling the MUSASHI range of products in Australia.
The MUSASHI Registered Marks were assigned to Premier Nutrition Corporation (Premier) with effect from 20 October 2014.
Justice Yates joined Premier and Post Foods as respondents/cross-appellants to the appeal (Order 2 of orders made by Yates J on 21 November 2014).
On 26 June 2015, pursuant to a share and asset sale agreement, Health Foods as "the Trademark Purchaser" agreed to purchase the MUSASHI Registered Marks and Vitaco Health Australia as "the Share Purchaser" agreed to purchase the "Musashi Intellectual Property" from Post Holdings, Inc., which is the USA holding company of Post Foods, as "the Share Vendor" and Premier as "the IP Vendor". The "Musashi Intellectual Property" was defined to exclude the MUSASHI Registered Marks. That is, Health Foods was the purchaser of the trade marks but Premier remained the registered owner.
On 1 July 2015, Premier assigned all interests in the MUSASHI Registered Marks to Health Foods.
On 24 August 2015, Vitaco Holdings Limited lodged a prospectus with ASX Limited (the prospectus). The offer period under the prospectus was from 4 September 2015 to 11 September 2015.
On 14 September 2015, Health Foods agreed to sell the "Owned IPR" to Vitaco IP. The "Owned IPR" was defined to include all intellectual property rights owned by, relevantly, Health Foods. There was no exclusion of the MUSASHI Registered Marks.
On 21 September 2015, Health Foods assigned to Vitaco IP the MUSASHI Registered Marks.
10 As for the Christian application, I granted leave to file the application on 21 September 2015, returnable instanter.
11 As at 21 September 2015, the date of hearing of the Christian application and the Nestlé application, Health Foods had no further interest in the MUSASHI Registered Marks. The registered owner of the MUSASHI Registered Marks remained Premier, the third respondent: the legal owner was Vitaco IP.
12 Thus, as at the date of hearing of the interlocutory applications, the evidence was that the registered owner of the MUSASHI Registered Marks remained Premier. The legal owner of the MUSASHI Registered Marks was Vitaco IP. The only party which sought to be joined as a respondent/cross-appellant was Vitaco IP. Health Foods had no interest in the MUSASHI Registered Marks.
13 Mr Christian's evidence was based on the prospectus which, he asserted, states that Vitaco Health Australia and Health Foods acquired the MUSASHI Registered Marks. The prospectus states that Vitaco Health Australia and Health Foods acquired all intellectual property rights relating to the "Musashi" brand from Premier. Each of those parties are part of "the Vitaco Group". This is supported by the evidence and by submissions from counsel for Nestlé and Vitaco IP, namely that each of the parties was part of the same group of companies. Mr Christian also relied on the share and asset sale agreement of 26 June 2015, which had been superseded by the intellectual property transfer agreement of 14 September 2015.
14 Mr Christian did not establish that Vitaco Health Australia had an interest in the MUSASHI Registered Marks. He relied on a page from the prospectus. The prospectus stated that on 26 June 2015, Vitaco Health Australia and Health Foods, defined jointly as "the Musashi Purchasers" entered into a share and asset sale agreement with Post Holdings, Inc. and Premier, defined jointly as "the Vendors". The prospectus stated that 'the Musashi Purchasers acquired all intellectual property rights relating to the "Musashi" brand from Premier'.
15 On a more detailed examination of the evidence provided by Nestlé, as set out in the chronology above, Vitaco Health Australia did not acquire an interest in the MUSASHI Registered Marks and there is no evidence that it has such an interest.
16 That is, Mr Christian did not establish that Vitaco Health Australia or Health Foods had any existing interest in the MUSASHI Registered Marks, or that those parties had an interest in, or were affected by, the appeal or cross-appeal.
17 I dismissed the Christian application and made no order as to costs.
18 The order for the joinder of Vitaco IP and the order dismissing the application for joinder of Vitaco Health Australia and Health Foods were made on the basis of the evidence as to the interests in the MUSASHI Registered Marks as at 21 September 2015.