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[2022] WASCA 97
Court of Appeal (WA)
2022-08-02
Quinlan CJ
Original judgment source is linked above.
Commercial arbitration - Arbitration agreement - Proceedings stayed pending arbitration between Rhodes and Bianca and John - Rhodes not signatory to arbitration agreement - Judge stayed matters arising from paragraphs of Rhodes' reply - Whether judge erred in staying paragraphs of reply - Whether judge erred in finding that arbitral matter arose from controversy generated by certain paragraphs of Rhodes' reply - Commercial Arbitration Act 2012 (WA) s 8(1) - Where party who requested referral to arbitration was not party to relevant dispute - Whether judge erred in failing to find that party who requests referral to arbitration must be party to dispute constituting the matter which is subject of arbitration agreement - Whether judged erred in finding that test for whether person claims through or under signatory to arbitration agreement does not require consideration of whether relationship of proximity exists between claimant and signatory - Whether judge erred in finding that requesting party had not yet made first statement on substance of dispute
Practice and procedure - Pleadings - Striking out pleadings - Whether judge erred in failing to strike out paragraphs of a defence
Practice and procedure - Discovery - Whether court has power to order discovery by a defendant to a co-defendant only if there is a right to be adjusted between them
The claims and defences of the parties in the proceedings
Bianca and John's defence in the Rhodes proceedings
5A.2 [The Children] are entitled in equity to an interest in the tenements which are the subject of this proceeding set out in paragraphs 462 to 464, for the reasons set out in this defence.
23.1 (g) from 3 March 1989, all of the shares in Zamoever were beneficially owned by [the Children] and held on trust for them by Mr Lang Hancock [Lang] until 27 March 1992 and thereafter by [Gina] (HFMF Trust);
(h) on or about 3 August 1990:
(i) HPPL transferred to Hancock Resources Limited (then known as Pilbara Port and Railroad Company Pty Ltd) (HRL) E 47/243;
(iv) HML transferred to HRL exploration licences E 47/308, E 47/309, and E 47/427 to 431;
(i) exploration licence E 47/597 was applied for (on or about 22 April 1992) by, and granted (on or about 6 October 1992) to HRL;
(j) as of 6 October 1992, HRL:
(i) held full legal and beneficial title to each of the Hope Downs ELs and East Angelas ELs;
(v) was a wholly owned subsidiary of HFMF;
(vi) was not a subsidiary of HPPL; and
(vii) had no obligations to Rhodes, Mr D Rhodes, HPPL, WPPL, or the Partnership in respect of the Hope Downs ELs and the East Angelas ELs;
(k) in the premises, as of 6 October 1992, all the Hope Downs ELs and the East Angelas ELs were the property of the HFMF Trust, and therefore beneficially owned by the beneficiaries of the HFMF Trust, being [the Children];
(l) as part of a fraudulent and dishonest design of Gina, in breach of her fiduciary duties as trustee of the HFMF Trust, as a director or shadow director of HFMF, HRL and Zamoever, and arising from the 1988 Agreement, with the knowledge and participation of HPPL and HDL, as pleaded in paragraph 465 of this defence, caused the following transfers of the Hope Downs ELs and East Angelas ELs:
(i) on or about 30 November 1992, or alternatively 9 March 1993, transfer from HRL to Hope Downs Ltd (HDL), a subsidiary of HPPL, with the consent, knowledge, approval and or acquiescence of HPPL and HDL;
(ii) on or about 26 July 1996, transfer from HDL to HPPL, with the consent, knowledge, approval and or acquiescence of HPPL and HDL;
(iii) on or about 11 September 1997, transfer from HPPL to HDIO, with the consent, knowledge, approval and or acquiescence of HPPL and HDIO;
(m) in the premises, the Hope Downs ELs and East Angelas ELs were held on constructive trust for the beneficiaries of the HFMF Trust, being [the Children];
165.1 ... as at or shortly after Lang's death on 27 March 1992, HRL held exploration licences over land that would become the subject of the Hope Downs Mining Lease (the Hope Downs Tenements);
165.2 HRL, at the time, was wholly owned by HFMF;
165.3 ... Lang had caused those exploration licences to be held as separately owned assets by HRL or, prior to its sale to BHP Minerals Limited, HML, being another subsidiary of HFMF, rather than by HPPL, in order to protect HPPL's guaranteed royalty income from the risks associated with the development of mining assets (defined below as the 'royalty income protection purpose');
165.4 ... on 22 June [1988], Lang and Gina entered into an agreement (the 1988 Agreement), the principal terms of which included that:
(a) Lang would continue to retain complete control over HPPL until his death;
(b) Lang would establish a trust (the HMH Trust) to which he would transfer, by way of gift, the 33.3% shareholding in HPPL left to him by his late wife, Hope Margaret Hancock (HMH) in her will, of which 17.7% would be held for Gina absolutely on Lang's death, and the remaining 15.6% would be held for Bianca, John, Hope and Ginia in equal shares absolutely when Ginia turned 25;
(c) Lang would sell the remaining one third of the ordinary and cumulative special shares in HPPL held by him to HFMF;
(d) on Lang's death, Gina would have a total holding of 51.0% of the ordinary and special cumulative shares in HPPL, while the entitlement of Bianca, John, Hope and Ginia when Ginia turned 25 would be 15.6% of the ordinary and cumulative special shares in HPPL held by the HMH Trust and absolute control over HFMF, including control over the 33.3% of ordinary and special cumulative HPPL shares held by HFMF (a total of 49.0% of HPPL's shares); and
(e) Gina would abandon claims that she had against Lang, including allegations she had previously made, as pleaded at paragraph 209 of this defence, and including for any alleged breaches of his fiduciary duties as a director of HPPL in placing mining assets in HFMF or its subsidiaries rather than HPPL;
165.5 ... during Lang's lifetime each of Gina and HPPL knew of, acquiesced in and agreed to:
(a) the fact that the 1988 Agreement was legally binding on Lang, Gina and HPPL; and
(b) HRL and/or HML's ownership of mining assets pursuant to the royalty income protection purpose;
165.6 ... as a result of the 1988 Agreement, Gina owed fiduciary obligations to Bianca, John, Hope and Ginia in relation to the interests in mining assets conferred upon them through the 1988 Agreement ...;
165.7 ... through making the 1988 Agreement, Lang established a trust, the principal asset of which was the right to control HFMF and its assets (the HFMF Trust), and the beneficiaries of which were Bianca, John, Hope and Ginia, which trust Lang formally gave effect to through:
(a) causing Zamoever to become the controlling member of HFMF; and
(b) by a deed made in March 1992 (the 1992 Deed), declaring a trust in favour of Bianca, John, Hope and Ginia over the shares he held in Zamoever;
165.8 ... on Lang's death, Gina became the trustee of the HFMF Trust;
165.9 ... between 27 March 1992, when Lang died, and 20 February 1996, Gina, with the knowledge and assistance of HPPL, undertook a series of steps to obtain interests in assets other than those provided to her through the 1988 Agreement and to take those assets away from her children. Those steps included:
(a) causing HPPL to make a claim that HRL held its interests in some of the Hope Downs Tenements on constructive trust for HPPL, on the basis (known by Gina and HPPL to be without foundation and false) that Lang had breached his fiduciary duties to HPPL by placing those tenements with HRL rather than HPPL (the Constructive Trust claim);
(b) causing HPPL to make that claim despite the fact that any such claim had been compromised and released through the 1988 Agreement;
(c) causing HRL to transfer the Hope Downs Tenements to HDL, purportedly to be held on trust for whichever of HPPL or HRL were found to be the beneficial owner of the Hope Downs Tenements;
(d) causing HFMF and HPPL to agree to a transaction referred to as the Debt Reconstruction, the effect of which was that HPPL was able to buy back the shares held in it by HFMF for effectively no consideration;
(e) causing HFMF and HRL to agree to a Deed of Acknowledgement and Release (the 1995 Deed relied on by the plaintiff), as part of the Debt Reconstruction transaction, by which HFMF and HRL purported to acknowledge, falsely and contrary to Gina and HPPL's acceptance of the royalty income protection purpose, that HFMF had held shares in HML and HRL on trust for HPPL;
(f) causing HRL to agree to a Deed of Compromise of Litigation with HPPL and HDL (the 1996 Deed relied on by the plaintiff) to compromise the Constructive Trust claim, by which HRL purported to acknowledge that it did not have any beneficial interest in the Hope Downs Tenements, in circumstances where Gina knew the Constructive Trust claim was without foundation and false and in circumstances where Gina was aware that HRL was without fully informed, independent legal advice in relation to the Constructive Trust claim;
165.10 ... as a consequence of the steps summarised in paragraph 165.9:
(a) title to the Hope Downs Tenements passed to HPPL;
(b) HPPL transferred title to the Hope Downs Tenements to HDIO;
(c) HDIO obtained the Hope Downs Mining Lease;
(d) HDIO entered into the Hope Downs Joint Venture with Hamersley WA; and
(e) HDIO has thereafter received and continues to receive royalties in respect of iron ore produced and sold by Hamersley WA from the area the subject of the Hope Downs Tenements;
165.11 ... HPPL and HDIO received their title to and interest in the assets referred to in paragraph 165.10 of this defence (the Hope Downs Assets), knowing that those assets;
(a) had been the subject of the HFMF Trust; and/or
(b) had been removed from the HFMF Trust and/or otherwise transferred to HPPL in breach of Gina's fiduciary duties:
as trustee of the HFMF Trust;
as a director or shadow director of HFMF, HRL and Zamoever; and/or
pursuant to the 1988 Agreement;
165.12 ... in the premises of the matters summarised in paragraph 165.11, each of HDL and HPPL held, and HDIO held and continues to hold, their respective interests in the Hope Downs Assets on constructive trust for Bianca, John, Hope and Ginia.
462.1 in engaging in the course of conduct referred to at paragraph 461 of this defence, Gina breached her fiduciary duties:
(a) as trustee of the HFMF Trust;
(b) as a director or shadow director of HFMF, HRL and Zamoever; and/or
(c) arising from the 1988 Agreement pleaded in Section 12(E) of this defence;
(a) was knowingly involved in Gina's breaches of fiduciary duty;
(b) participated in a fraudulent and dishonest design, together with Gina, for the purposes of conferring a benefit on HPPL, being full legal and beneficial title to the Hope Downs Tenements; and/or
(c) received legal title to the Hope Downs Tenements knowing of the breaches of fiduciary duty by Gina and/or knowing that the Hope Downs Tenements formed part of the HFMF Trust.
464.1 HDL, from 30 November 1992, or alternatively 9 March 1993, until 26 July 1996, held the Hope Downs Tenements constructive trust for the beneficiaries of the HFMF Trust;
464.2 HPPL, from 26 July 1996 until 11 September 1997, held the Hope Downs Tenements on constructive trust for the beneficiaries of the HFMF Trust; and
464.3 HDIO holds, and has held since 11 September 1997, the Hope Downs Assets (including the Hope Downs Mining Lease), and HPPL holds any income received in respect of the Hope Downs Assets, on constructive trust for the beneficiaries of the HFMF Trust.
465.1 the transfer Deed, transfer of bare legal title over the Hope Downs Tenements to HDL, and subsequent transfer of the Hope Downs Tenements from HDL to HPPL and from HPPL to HDIO;
465.2 the Constructive Trust claim;
465.3 the 1995 Deed; and
465.4 the 1996 Deed,
does not provide any support for the contention that the Hope Downs Tenements were held by HML or HRL on trust for HPPL, but rather was part of Gina's fraudulent and dishonest design, with the knowledge and participation of HPPL and HDL, in breach of her fiduciary duties as trustee of the HFMF Trust, as a director or shadow director of HFMF, HRL and Zamoever, and arising from the 1988 Agreement as pleaded in paragraph 462 of this defence.
(a) at [3.3.1.1] that, at all relevant times, the Hope Downs ELs and the East Angelas ELs were held by HML, HRL and HDL on trust for HPPL and WPPL; and
(b) at [3.3.1.2] alternatively, that the tenements were held on trust for HPPL to be dealt with in accordance with the rights of HPPL and WPPL, including HPPL and WPPL's royalty entitlements, and subject to the rights of Rhodes.
(a) a breach of Lang's fiduciary, equitable and statutory duties owed to HPPL (Rhodes' amended reply [3.3.2.1]); and/or
(b) a breach of HPPL's fiduciary duty to WPPL (Rhodes' amended reply [3.3.2.2]).
(a) Gina did not breach any fiduciary duties as alleged by Bianca and John, as the Hope Downs ELs and the East Angelas ELs were never assets of the HFMF Trust (by reason of breaches of fiduciary and other duties by Lang and/or HPPL), and accordingly, on such transfer or retransfer, equity would not impose a constructive trust over the Hope Downs ELs and East Angelas ELs in favour of the Children;
(b) if Gina caused the beneficial interest in the ELs to be transferred to HPPL or its subsidiaries, the effect of the breach of Lang's and/or HPPL's fiduciary duties was undone and the correct position in equity was re‑established - that is, the beneficial interest in the Hope Downs ELs and the East Angelas ELs held by HPPL and WPPL was subject to the rights of WPPL and subject to, or in conformity with, the rights of Rhodes.
3.4.19.1 acquired, or re‑acquired, the Hope Downs ELs and the East Angelas ELs from HRL and HFMF in a bona fide transaction for value, and those tenements were held on trust [for HPPL and WPPL or alternatively for HPPL to be dealt with in accordance with the rights of HPPL and WPPL];
3.4.19.2 was not knowingly concerned in any breaches of trust or fiduciary duty by Gina (which breaches are denied);
3.4.19.3 did not participate or assist in a fraudulent and dishonest design, together with [Gina] (which design is denied), for the purpose of obtaining the Hope Downs ELs and the East Angelas ELs;
3.4.19.4 did not receive title to or a beneficial interest in the Hope Downs ELs and the East Angelas ELs knowing of any breaches of trust or fiduciary duty by [Gina], HRL and/or HFMF (which breaches are denied).
(a) do not come to court with clean hands because the alleged trust is based on breaches of fiduciary duty and other duties owed by Lang and/or HPPL [3.5.1];
(b) have failed to do equity by not offering to accord priority to Rhodes' claims in relation to ML282SA and/or HPPL's proceeds [3.5.2]; and
(c) have been guilty of laches and acquiescence, and would thereby be prevented from holding such an interest in ML282SA and/or HPPL's proceeds or from holding such an interest in priority to the interests of Rhodes and WPPL [3.5.3].
(1) A court before which an action is brought in a matter which is the subject of an arbitration agreement must, if a party so requests not later than when submitting the party's first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.
(2) Where an action referred to in subsection (1) has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the court.
party means a party to an arbitration agreement and includes -
(a) any person claiming through or under a party to the arbitration agreement; and
(b) in any case where an arbitration does not involve all of the parties to the arbitration agreement, those parties to the arbitration agreement who are parties to the arbitration[.]
The primary judge's decision staying the matters
(a) an action is brought in a matter which is the subject of an arbitration agreement;
(b) a party requests that the court refer the parties to arbitration;
(c) the party makes the request not later than when submitting the party's first statement on the substance of the dispute; and
(d) the arbitration agreement is not null and void, inoperative or incapable of being performed.
When all four elements exist, the court must refer the parties to arbitration.
Does Rhodes' amended reply mean that the proceedings are 'in' a matter which is the subject of an arbitration agreement?
Rhodes contends that the acquisition of the tenements by HML and HRL, then subsidiaries of HFMF, was in breach of Lang's fiduciary and other duties owed to HPPL[15] and had the consequence that HML and HRL held the tenements on constructive trust for HPPL.[16] Rhodes contends that Gina did not breach any fiduciary duties as alleged by Bianca and John as part of the Arbitration Dispute Matters because the tenements never formed part of the property of the HFMF Trust or, in transferring the tenements to HPPL, Gina was undoing the improper transfer of assets that had occurred at the direction of Lang.[17]
Rhodes contends that if HML and HRL held the beneficial interest in the tenements, those tenements were validly transferred to HPPL, and all claims to the tenements validly relinquished by HRL and HFMF either because of the breach of fiduciary duty by Lang or as a result of bona fide transactions for value as part of the debt reconstruction transactions in which HPPL provided funds to, and forgave debts of, HRL and/or HFMF in exchange for the tenements, saving HRL and HFMF from insolvency.[19]
Is HPPL a 'party' who can request referral to arbitration?
Was the request made not later than HPPL's first statement on the substance of the dispute?
(a) HPPL's defence filed 14 February 2020;
(b) HPPL's amended chamber summons filed 10 May 2018 seeking an order that Rhodes and other parties be referred to arbitration in respect of the defence and counterclaim of Bianca and John; and
(c) HPPL's participation in directions hearings, most recently on 13 December 2020.
Pursuant to s 8(1) of the Commercial Arbitration Act 2012 (WA), the proceedings be stayed to the extent that they concern the matters in [3.3.2], [3.4] and [4] and [5] (to the extent [4] and [5] rely on the upon the allegations in [3.3.2] and [3.4]) of the plaintiffs Amended Reply in the Original Action (to the fourth and fifth defendants defence, the sixth defendants defence and the seventh defendants defence) filed 26 March 2021.
a) [3.3.2.2], and
>
> b) [3.3.2.3]-[3.4.5] and [4] and [5] insofar as they rely on the matters pleaded in [3.3.2.2],
a) finding that the test for whether a person is claiming 'through or under' a party to an arbitration agreement does not require consideration of whether a relationship of proximity exists between that person and the signatory party to the arbitration agreement; and
>
> b) failing to find that because a relationship of sufficient proximity did not exist between Rhodes and HPPL, Rhodes was not a party claiming through or under HPPL.
a) filing its defence to Rhodes' third further amended substituted statement of claim on 14 February 2020 and otherwise making submissions to the court and the Court of Appeal to the substantive effect that at all times HPPL owned the relevant tenements and denies the claims of Rhodes and Ms Rinehart and Mr Hancock;
>
> b) alternatively, applying to the court in 2017 and 2018 for orders that the proceedings (including the matters between Rhodes and the fourth and fifth respondents which the primary judge found were the subject of the arbitration agreement) be stayed pursuant to the court's inherent jurisdiction, and not pursuant to s 8(1) of the Commercial Arbitration Act 2012 (WA);
>
> c) further or alternatively, making oral submissions to the court, including by way of example, to the Court of Appeal on 18 November 2019 to the effect that Rhodes is not a party to the arbitration agreement on the basis that it is claiming 'through or under' any party to the arbitration agreement.
a) there is no notion in law of staying a 'reply' or the right to raise such matters by way of answer to a defendant's positive case as may be available;
>
> b) Rhodes in raising these paragraphs by way of reply was not bringing 'an action' in a matter the subject of an arbitration agreement within the meaning of section 8(1) of the Commercial Arbitration Act 2012 (WA);
>
> c) a stay of the paragraphs of Rhodes' amended reply could not be a means of effecting a referral of Rhodes and the fourth and fifth defendants to arbitration as Rhodes in the amended reply is giving reasons why the defence is not sustainable and does not seek any relief against the fourth and fifth defendants; and/or
>
> d) if and to the extent that the stay operates to prevent the fourth and fifth defendants from advancing matters in their amended defence to Rhodes' claim and Rhodes' implied joinder thereto, that is contrary to what his Honour held at J[151] and contrary to the decision in Hancock Prospecting Pty Ltd v DFD Rhodes Pty Ltd [2020] WASCA 77; (2020) 55 WAR 435 at [208]- [225] to the effect that there is no notion in law of 'staying' a defence.
Ground 2: is Rhodes claiming through or under HPPL?
(a) finding that the test for whether a person is claiming 'through or under' a party to an arbitration agreement does not require consideration of whether a relationship exists between that person and the signatory party to the arbitration agreement; and
(b) failing to find that, because a relationship of sufficient proximity did not exist between Rhodes and HPPL, Rhodes was not a party claiming through or under HPPL.
(a) For a person to be claiming 'through or under' a party to an arbitration agreement, there will usually be a relationship of sufficient proximity between the claimant and the party to the agreement.[32] The relationship between the claimant and the party must be an essential ingredient of the claim and that relationship must be relevant to the claim.[33]
(b) The statutory purpose of s 8 of the Act is to require those who have agreed to submit their disputes to arbitration to be held to their bargain. This purpose is not facilitated by requiring strangers to the agreement to participate in an arbitration simply because they raise the same or similar factual issues in their claim.[34] This is supported by various examples of situations which have been held to involve a claim made through or under another party.
(c) The decision of the High Court in Rinehart v Hancock involved an application of the through or under test to the particular controversy before the High Court. The court did not make general statements regarding third party claims. The judge erred by treating one aspect of the High Court's judgment as a rigid proposition of law.[35]
(a) by [3.3.2.1] (together with [3.3.2.3] and [3.3.2.4]) of its amended reply, Rhodes takes its stand on a ground which is available to HPPL;
(b) by [3.4.2] to [3.4.19] of its amended reply, Rhodes takes its stand on a ground which is available to Gina, HFMF, HPPL and HRL.
Ground 4: is HPPL a 'party' entitled to make a request under s 8 of the Act? Submissions
The emphasis in the Act is upon the voluntary submission by parties of their disputes to arbitration. By its terms, s 8 provides that when its preconditions are satisfied, the court must refer the parties to arbitration (subject to exceptions which are presently immaterial). Section 8 of the Act confers power on the court, together with a duty to exercise the power in a case where the power arises. If the statutory conditions are satisfied, the court 'must' make an order referring the parties to arbitration. Where, despite agreement by the parties to submit identified disputes to arbitration, one of those parties commences an action in a court in relation to such a dispute, s 8 provides the mechanism for making effectual the parties' agreement as to how their commercial disputes are to be resolved. The mandatory nature of s 8 ensures that the parties to an arbitration agreement are held to their bargain to resolve their disputes by arbitration rather than curial determination. (emphasis added)
Ground 3: was HPPL's request made after it had made its first statement on the substance of the dispute?
(a) The filing of HPPL's most recent defence to Rhodes' claim on 14 February 2020. This defence does not merely deny the allegations made by Rhodes. It positively pleads certain conduct, events and legal consequences which concern the subject of the dispute.[60] That HPPL's defence does not give rise to the arbitral matter is 'neither here nor there', provided the defence contains a statement by HPPL as to the substance of the dispute. It also does not matter that the defence was filed in response to Rhodes' claims.[61]
(b) In various other ways, HPPL has made its position clear as to the matters in dispute between Rhodes and Bianca and John. For example, at the hearing of the first stay appeal, HPPL handed up a pleading summary document which, Rhodes submits, engages with the issues as between Bianca and John and Rhodes in the proceedings.[62]
(c) Despite filing several applications between 2017 and 2018 to stay proceedings pursuant to s 8 of the Act, at no time during the course of those applications did HPPL seek a stay against Rhodes pursuant to s 8. Rather, HPPL sought a stay against Rhodes under the court's inherent jurisdiction. HPPL's conduct shows a conscious decision to not seek a stay against Rhodes under s 8 of the Act, and thus constitutes a statement on the substance of the dispute.[63]
Ground 5: did the judge err by staying paragraphs of Rhodes' amended reply? Rhodes' and Bianca and John's submissions
(a) HPPL's chamber summons sought a stay of various paragraphs of the defence and of various paragraphs of Rhodes' amended reply. It failed to obtain a stay in respect of the paragraphs of the defence but succeeded in respect of the paragraphs of the reply.[68]
(b) The controversy the subject of the primary judge's reasons and orders would seem to be the controversy arising from Rhodes' positive pleas in the specified paragraphs of its amended reply and implied rejoinder of Bianca and John in response thereto.[69]
(c) When it was pointed out to the primary judge in argument on 2 July 2021 that a stay cannot be granted of parts of a reply, the primary judge made a form of order which seems to have expanded the scope of the stay significantly.[70]
(d) Rhodes' amended reply does not claim relief, so it is unclear how what is said in the reply can produce the result that the claim by Rhodes is an action in a matter the subject of an arbitration agreement.[71]
(e) A pleading in a reply can never give rise to the action being in a matter the subject of an arbitration agreement.[72]
(f) On its proper construction, s 8 of the Act operates only where one party to an arbitration agreement commences a proceeding against another party to the arbitration agreement in breach, or apparent breach, of that agreement.[73]
The disputes between Rhodes and Bianca and John arising from the parts of Rhodes' amended reply [to which his Honour had referred] concern subject matters that are the subject of the arbitration agreement between the parties to the Hope Downs Deed. Those controversies, or bodies of differences, are therefore the subject of the arbitration agreements if Rhodes is a party to the arbitration agreements.
Ground 1: did the primary judge err in finding that an arbitral matter arose from the controversy generated by [3.3.2.2] and other paragraphs of Rhodes' amended reply insofar as they rely on what was there pleaded?
Further, or in the alternative, a breach of HPPL's fiduciary duty to its partner, WPPL, in the partnership styled 'Hancock and Wright', which involved Mr Lang Hancock purporting to give away Hancock and Wright's rights in, and/or the commercial opportunity to exploit, the Hope Downs ELs and the East Angelas ELs for the benefit of HML, HRL, HFMF, the Children and/or Mr Lang Hancock, for no consideration or benefit to HPPL and WPPL, or alternatively for inadequate consideration, which breach by HPPL was procured by Mr Lang Hancock.
(a) All of the Hope Downs ELs and East Angelas ELs were the property of companies owned by the HFMF Trust and therefore indirectly beneficially owned by its beneficiaries; namely, the Children.
(b) With the knowledge of HPPL and HDL, Gina engaged in fraudulent and dishonest conduct in causing a series of transfers of the ELs and transactions known as the Debt Reconstruction.
(c) As a result, the Hope Downs ELs and East Angelas ELs are held on constructive trust for the beneficiaries of the HFMF Trust; namely, the Children.
(a) The opportunity to acquire ELs in the Hope Downs and East Angelas areas was a Partnership opportunity.[89]
(b) On or about 2 May 1985, HPPL, for, and on behalf of, the Partnership, applied for the Hope Downs 1A EL.[90]
(c) On or about 23 March 1986, the Hope Downs 1A EL was granted to HPPL, which held that EL for, and on behalf of, the Partnership.
(d) On or about 28 November 1986, HML applied for the Hope Downs 1B EL and the Hope Downs 3 EL. The capacity in which HML made those applications is pleaded at 6FASSOC [46A], the material terms of which we will set out below.
(e) On or about 25 April 1988, the Hope Downs 1B EL and the Hope Downs 3 EL were granted to HML.
(f) On or about 2 December 1988, HML lodged applications for the East Angelas ELs.[91] The capacity in which HML made those applications is pleaded at 6FASSOC [49A], the terms of which materially mirror those in [46A].
(a) by HML as the agent, corporate creature, vehicle or alter ego of, or on trust for, HPPL or, alternatively, for the Partnership;
(b) for the purposes and in the course of the Partnership business and in order to carry on the business of the Partnership; and
(c) by HML in concert with HPPL.
By reason of the matters pleaded in paragraphs 44A, 44AB and/or 49A above, the East Angelas ELs were:
(a) property, or an asset or right in property acquired on account of, for the purposes of and/or in the course of the business of, the Partnership and were property of the Partnership including for the purpose of section 30 of the Act; or
(b) property, or an asset or right in property acquired to carry on the business of the Partnership within the meaning of clause 2 of the 1983 Partnership Agreement; and
(c) in the case of either (a) or (b), held as an asset of and/or on trust for the Partnership.
53A. In the alternative to paragraph 53AA above, at all material times HML held the exploration licences referred to in paragraphs 49 and 52 on trust for HPPL.
Particulars of trust
That HML held the exploration licences on trust for HPPL is to be inferred from the following, individually or cumulatively:
(a) the transfer of the bare legal title referred to in paragraph 63 below;
(b) Deed between HDL, HRL and HPPL dated 30 November 1992 ([1992] Transfer Deed), clause 1(b);
(c) 1995 Deed, clause 2.1;
(d) Deed of Compromise of Litigation dated 20 February 1996, clauses 2.1, 2.2; or, in the alternative
(e) the matters alleged by HPPL at paragraphs 14 to 27 of its counterclaim dated 23 July 1993 filed in the Porteous proceeding;
(f) the matters set out in paragraph 49A above.
53B. HPPL held the interest in the exploration licences referred to in paragraph 52.1 as an asset or interest of the Partnership, alternatively on trust for the Partnership.
199 WPPL puts its case in a further alternative manner in [53C]. It there pleads in the alternative that HML held the tenements on trust for HML and WPPL in equal shares. That paragraph is in the following terms:
Alternatively at all material times, if HML did not hold the exploration licences referred to in paragraphs 49 and 52.1 on trust for HPPL (as alleged at paragraphs 53A and 53B above), or as assets, interest or property or on trust for the Partnership (as alleged at paragraphs 57, 58 and 59 below), then it held them on trust for itself and for WPPL in equal shares.
(a) the 1992 Transfer Deed included a term that HRL transferred bare legal title in the East Angelas ELs to HDL;[96]
(b) the 1995 Deed included an acknowledgement by HFMF and HPPL that the transfer of the shares in HML from HPPL to HFMF was legally ineffective and that the issue of shares by HML to HFMF was at all times on trust for HPPL absolutely;[97] and
(c) the 1996 Deed included:[98]
(i) HRL's acknowledgement and declaration that it does not have, and never has had, any beneficial interest in the Hope Downs ELs and the East Angelas ELs; and
(ii) HDL's acknowledgment and declaration that, in consequence of the 1992 Transfer Deed, it holds, and has always held, the Hope Downs ELs and the East Angelas ELs on trust for HPPL.
By reason of the facts pleaded at paragraphs 1 to 109:
110.1 the opportunity to develop Hope Downs and East Angelas was a commercial opportunity of the Partnership from at least 3 April 1985 and one of the then mining prospects of the existing Partnership as at 13 September 1985;
110.2 pursuant to the 1987 Agreement WPPL relinquished only part of the commercial opportunity in Hope Downs and East Angelas, namely that part of the opportunity relating to Hope Downs 1, 2 and 3;
110.3 Clause 13 of the 1983 Partnership Agreement as from 13 September 1985 obliged HPPL to bring into production as soon as reasonably possible, the then mining prospects of the Partnership always seeking a royalty;
110.4 the commercial opportunity (either directly or through its subsidiaries or HML) to acquire mining or other tenements in relation to the East Angelas Reserves was an opportunity obtained by HPPL by reason of its position as a Partner of WPPL;
110.5 all mining or other tenements in relation to the East Angelas Reserves acquired by HPPL or its subsidiaries or HML (if it was not a subsidiary) were acquired for and on behalf of the Partnership or alternatively were held on trust for the Partnership or on trust as to 50% for WPPL; alternatively
110.6 if and to the extent that any mining or other tenements in relation to the East Angelas Reserves acquired by HPPL or its subsidiaries or HML were not acquired for and on behalf of the Partnership or held on trust for the Partnership or on trust as to 50% for WPPL, such mining or other tenements were acquired by HPPL or its subsidiaries or HML without the consent or authorisation of WPPL.
111.1 acquiring and subsequently dealing with or disposing of any part of the East Angelas ELs either directly or through its subsidiaries and HML as if the East Angelas ELs were its own assets or interests; and/or
111.2 directing, alternatively consenting, approving or acquiescing in HDIO's entry into the Hope Downs Joint Venture as pleaded at paragraph 85 above; and/or
111.3 failing to account to WPPL for its share of all (or any) profits or benefits HPPL obtained by entering into the Hope Downs Joint Venture with respect to the East Angelas ELs and the area of the East Angelas Reserves, or failing to procure from HDIO an account of profits or benefits for WPPL which have been obtained by entering into the Hope Downs Joint Venture with respect to the East Angelas ELs and the area of the East Angelas Reserves; and/or
111.4 directing, alternatively consenting, approving or acquiescing in Hamersley WA's registration as shareholder of the Hope Downs Mining Lease, in so far as it concerns the area of the East Angelas ELs and the East Angelas Reserves, and the East Angelas ELs in respect of 50/100th shares as pleaded at paragraph 88 above,
HPPL breached the fiduciary and statutory obligations it owed to WPPL referred to in paragraph 109 and is liable to pay equitable compensation to WPPL equivalent to 50% of the profits or benefits earned by HPPL and HDIO plus interest.
Particulars of HPPL and HDIO's profit or benefit
The profits or benefits HPPL and HDIO have obtained by reason of having entered into the Hope Downs Joint Venture included a capital payment, royalties received on the sale of iron ore extracted from the area of the East Angelas ELs and the East Angelas Reserves, and sales revenue from the sale of iron ore extracted from the area of the East Angelas ELs and the East Angelas Reserves.
121.1 By reason of HPPL's breaches of its fiduciary obligations pleaded above:
121.1 HPPL is liable to account to WPPL for 50% of any royalties that have been and may in the future be received by HDIO from Hamersley WA under the Hope Downs Joint Venture in respect of iron ore produced and sold by Hamersley WA from the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves hereinbefore mentioned;
121.2 HPPL is liable to account to WPPL for 50% of the consideration paid by Hamersley WA for its 50% acquisition from HDIO, of the East Angelas ELs and any other mining tenements or rights enforceable against the Crown under the Mining Act 1978 (WA) held by it with respect to the area of land formerly subject to the East Angelas Els and the East Angelas Reserves hereinbefore mentioned; and
121.3 HDIO holds half of its interest in the Hope Downs Mining Lease and any other mining tenements or rights enforceable against the Crown under the Mining Act 1978 (WA) held by it with respect to the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves hereinbefore mentioned and/or the Hope Downs Joint Venture, in so far as it concerns the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves, on trust as trustee for WPPL.
145.1.1 a declaration that all income and profits earned by HPPL, or HDIO as HPPL's agent, in respect of the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves hereinbefore mentioned, is to the account of the Partnership (alternatively to the account of WPPL as to 50%);
145.1.2 an account of all such income and profits;
145.1.3 payment to the Partnership alternatively to WPPL of 50% of such income and profits;
145.1.4 equitable compensation from HPPL for breach by HPPL of the obligation which it owes WPPL as a partner;
145.1.5 damages from HPPL for breach of the 1983 Partnership Agreement and/or the 1984 Agreement and/or the 1987 Agreement;
145.1.6 a declaration that WPPL is entitled to 50% of the royalties that have been and will in the future be received by HDIO from Hamersley WA in respect of iron ore produced and sold from the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves;
145.1.7 such further or other orders as the Court deems fit;
145.1.8 interest; and
145.1.9 costs.
146.1.1 a declaration that HDIO holds its interest in the Hope Downs Mining Lease and any other mining tenements or rights enforceable against the Crown under the Mining Act 1978 (WA) held by it with respect to the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves hereinbefore mentioned, on trust as trustee for the Partnership, alternatively for WPPL as to 50%;
146.1.2 a declaration that HDIO holds any proceeds from the transfer pleaded in paragraphs 88 and 105 above (including but not limited to any royalty that has been and may in the future be received by HDIO) on trust for the Partnership, alternatively for WPPL as to 50%;
146.1.3 a declaration that:
(a) HDIO is obliged to do all things necessary (including executing documentation and joining in seeking the consent of the State or joint venture party which may be necessary) to enable WPPL to have the benefit of its interest in the Hope Downs Mining Lease and any other mining tenements or rights enforceable against the Crown under the Mining Act 1978 (WA) held by it with respect to the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves hereinbefore mentioned; and
(b) HDIO is obliged to do all things necessary to assign to WPPL one half of HDIO's entitlement to receive East Angelas Royalties;
146.1.4 an account of all income and profits earned by HDIO in respect of the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves hereinbefore mentioned;
146.1.5 payment to the Partnership from HDIO of all such income and profits, alternatively 50% of such income and profits to WPPL;
146.1.6 in the alternative to the relief sought in sub-paragraph 146.1.4, equitable compensation from HDIO for breach by HDIO of the obligation which it owes WPPL as trustee;
146.1.7 a declaration that WPPL is entitled to 50% of the royalties that have been and will in the future be received by HDIO from Hamersley WA in respect of iron ore produced and sold from the East Angelas Reserves;
146.1.8 such further or other orders as the Court deems fit;
146.1.9 interest; and
146.1.10 costs.
Bianca and John's defence in the WPPL proceedings
The primary judge's decision refusing HPPL's strike‑out application
Senior counsel for Bianca and John, Mr Withers SC, advanced three arguments in opposition to Mr Hutley's analysis. First, in circumstances where WPPL and Rhodes have joined Bianca and John on the basis that Bianca and John claim an equitable interest in the Hope Downs tenements and seek to establish a res judicata which would prevent Bianca and John asserting that interest against them, it is not unnecessary or irrelevant in answer to WPPL's claim for Bianca and John to assert their equitable interest in the tenements and to plead the basis on which they say that they are entitled to that interest.
Secondly, Mr Withers submits that HPPL ignores the causes of action pleaded by WPPL, and also by Rhodes, which do not depend upon them establishing a proprietary interest in the Hope Downs tenements and hence do not stand or fall depending upon the basis on which HML/HRL are ultimately found to have acquired exploration licences over the Hope Downs tenements between 1986 and 1992. In particular, in its 6FASSOC, after pleading that the mining tenements in relation to the East Angelas reserves acquired by HPPL or HML were Partnership assets or held on trust for the Partnership, WPPL pleads breaches of fiduciary and statutory obligations by HPPL, for which it claims HPPL is liable to pay equitable compensation in respect of the profits or benefits it has received from the Hope Downs tenements, and breaches of agreements between WPPL and HPPL, for which it claims a lost opportunity to earn profits or benefits from the development of the East Angelas reserves. Those claims are premised on the basis that the East Angelas ELs and any mining tenements acquired by HPPL or HML were not acquired as an asset, interest or property or held on trust for the Partnership.
In answer to WPPL's claim for equitable compensation or damages, Bianca and John deny that entitlement and assert that all income and profits earned by HPPL or HDIO in respect of the area of land formerly subject to the East Angelas ELs and the East Angelas Reserves and/or royalties to be received by HDIO from that area are subject to a constructive trust for the beneficiaries of the HFMF Trust, incorporating in that pleading Bianca and John's allegations of a fraudulent and dishonest design which are the foundation for the claim of a constructive trust.
Furthermore, WPPL's alternative claim pleaded at 6FASSOC [53C] is based upon the assumption that HML did not acquire the tenements on trust for HPPL or the Partnership. Bianca and John's positive case responds to that claim. Mr Hutley's answer to that proposition is, as I have said, that 6FASSOC [53C] is bad in law, should be struck out and should be disregarded. However, I have rejected the HPPL parties' application to strike out 6FASSOC [53C], that pleading remains and accordingly Bianca and John's positive case pleading the Children's equitable interest in the Hope Downs tenements is not irrelevant, unnecessary or vexatious.
Mr Withers' third submission is that WPPL relies, in support of its position that HML/HRL acquired exploration licences over the Hope Downs tenements on trust for HPPL for the benefit of the Partnership, on the transactions which Bianca and John say were part of a dishonest and fraudulent design by Gina.
At 6FASSOC [53A] WPPL pleads that HML held the exploration licences on trust for HPPL which is to be inferred from six matters particularised. The first five of those matters, which are various deeds, transfers and the assertion of a constructive trust by HPPL from 1992 to 1996 are alleged by Bianca and John to have been part of Gina's fraudulent and dishonest design pleaded at [465] of Bianca and John's defence. That paragraph is premised on [462] which in turn relies on the allegations at [166] to [455] of their defence. WPPL relies on the matters asserted at 6FASSOC [53A] in particulars elsewhere in its pleading. Bianca and John's response is to assert that the relevant matters are part of Gina's fraudulent and dishonest design.
(a) WPPL does not seek any personal relief against Bianca and John. The only remedy sought by WPPL in which Bianca and John have an interest are the declarations of constructive trust.
(b) The competing claims to an equitable interest in the tenements depend on mutually exclusive allegations about the capacity in which HML acquired the East Angelas ELs in 1989. WPPL's proprietary claims and Bianca and John's claim to a proprietary interest in the same property 'diverge, part company, or become mutually inconsistent' at the point of the initial acquisition of the tenements.[104]
(a) whether, when HML acquired the tenements in 1989, it did so on trust for HPPL will depend on circumstances existing at, or before, that time. The instruments referred to in the particulars come substantially later than that critical time.
(b) On the critical issue of the intended beneficial owner at the point of acquisition, the deeds are 'self‑serving', of dubious admissibility and of no evidentiary value.
(c) Thus, determining whether HML's acquisition of the tenements was on trust for HPPL does not require the court to determine a complex fraud trial that depends upon events allegedly happening years after the relevant time.
(a) the 1992 Transfer Deed included a term that HRL transferred bare legal title in the East Angelas ELs to HDL;[120]
(b) the 1995 Deed included an acknowledgement by HFMF and HPPL that the transfer of the shares in HML from HPPL to HFMF was legally ineffective and that the issue of shares by HML to HFMF was at all times on trust for HPPL absolutely;[121] and
(c) the 1996 Deed included[122]:
(i) HRL's acknowledgement and declaration that it does not have, and never has had, any beneficial interest in the Hope Downs ELs and the East Angelas ELs; and
(ii) HDL's acknowledgment and declaration that, in consequence of the 1992 Transfer Deed, it holds, and has always held, the Hope Downs ELs and the East Angelas ELs on trust for HPPL.
(a) not to make unauthorised benefits or profits by reason or by use of its fiduciary position or by the use of commercial opportunities which have arisen by reason of its position as WPPL's partner;
(b) not to divert any mining prospect or commercial opportunity or interest away from the Partnership to itself or others without the consent or authorisation of WPPL;
(c) to account to the Partnership or to WPPL for any unauthorised benefit or gain obtained or received by reason of, or by use of, its position as WPPL's partner or by reason of any commercial opportunity derived from such position; and
(d) to refrain from permitting its subsidiary companies or HML to act in a manner inconsistent with these obligations of HPPL.
(a) the opportunity in relation to Hope Downs and East Angelas was a commercial opportunity belonging to the Partnership (see [206] above); and
(b) the commercial opportunity to acquire (either directly or through its subsidiaries or HML) mining or other tenements in relation to the East Angelas areas was an opportunity obtained by HPPL by reason of its position as a partner of WPPL (see [206] above).
(a) HPPL, acting in concert with HML or using HML as its corporate creature, vehicle or alter ego, caused HML to acquire the ELs;
(b) in so acting, HPPL may have been acting consistently with its own best interests, including in pursuit of the income protection purpose pleaded by Bianca and John;
(c) in the circumstances, as between HPPL and HML, HML acquired the tenements as beneficial owner;
(d) in so acquiring the tenements through HML, and in subsequently dealing with them as if they were its own assets or interests, and in failing to account to WPPL, HPPL acted in breach of its fiduciary obligations owed to WPPL as WPPL's partner.
(a) determination of the question of proprietary interest in the tenements at initial acquisition would not resolve WPPL's claims;
(b) the separate trial of issues proposed by HPPL would not contribute to the saving of time and cost by substantially narrowing the issues for trial and would not dispose of the action; and
(c) the separate trial of issues would give rise to significant contested factual issues.
(1) Any party may give notice in writing to any other party in a cause or matter requiring him to give discovery of all documents which are or have been in his possession, custody or power relating to any matter in question therein.
(1) An application for an order under this rule may be made at any time by -
(a) a party whose request under rule 1 for discovery has not been satisfied; or
(b) a party who has been requested under rule 1 to give discovery, whether or not the party has complied with the request.
(2) An affidavit in support of the application is not necessary.
(3) On an application, or at any time of its own motion in any proceedings, the Court, having regard to Order 1 rule 4B, may -
(a) order any or all of the parties to give discovery at that stage or at some specified future stage of the action;
(b) as to the documents to be discovered by any party -
(i) order that discovery be given of only those specified documents or specified classes of document;
(ii) order that discovery be given of only those documents that are directly relevant to any specified matter in question or to all matters in question;
(iii) order that discovery be given of all documents relating to any specified matter in question or to all matters in question;
(c) make orders as to which parties are to be given discovery by any specified party;
(d) order that any or all of the parties not give discovery at that stage of the action, or at all;
(e) order any or all parties to make, file and serve an affidavit verifying the party's list of documents discovered.
(4) For the purposes of this rule if a party is ordered to give discovery, the party shall, subject to the order, make and serve, a list of the documents that are or have been in the party's possession, custody or power. (emphasis added)
The primary judge's decision ordering discovery
(a) only empowers the Court to make an order that a defendant give discovery to a co-defendant where there is some right to be adjusted as between them;
>
> (b) does not empower the Court to make an order that a defendant give discovery to a co-defendant irrespective as to whether there is some right to be adjusted as between them.
(a) acting on a wrong principle;
>
> (b) allowing extraneous or irrelevant matters to guide or affect him;
>
> (c) mistaking the facts; or
>
> (d) taking into account an irrelevant consideration,
in finding that there was some right to be adjusted between the appellants on the one hand and Bianca and John on the other hand, even though there are no issues on the pleadings between them: J[15] and J[25].
(a) acting on a wrong principle;
(b) allowing extraneous or irrelevant matters to guide or affect him;
(c) mistaking the facts; or
(d) taking into account an irrelevant consideration,
in finding that there are real disputes between the appellants on the one hand and Bianca and John on the other hand which are likely to be agitated at trial, even though there are no issues on the pleadings between them: J[25].
(1) Leave is granted to amend ground 5 in terms of the minute of proposed amended grounds of appeal dated 16 March 2022.
(2) Leave to appeal is granted.
(3) The appeal is allowed in part.
(4) The judge's orders are modified by adding, after [3.3.2] in both places where it appears, the words '(but excluding [3.3.2.2])'.
(1) Leave to appeal is refused.
(2) The appeal is dismissed.
(1) Leave to appeal is refused.
(2) The appeal is dismissed.
(1) Leave to appeal is refused.
(2) The appeal is dismissed.
dismissed. I also agree with Quinlan CJ & Beech JA's disposition in relation to the Stay Appeal[158] and, in that respect, specifically with their Honours' joint reasons as to grounds 1 - 3 and 5 of the Stay Appeal. However, I wish to develop my own reasons for dismissing ground 4 of the Stay Appeal.
[a]ny party to the arbitration agreement who is a party to the action brought in a matter that is the subject of the arbitration agreement.[159]
(1) The paramount object of this Act is to facilitate the fair and final resolution of commercial disputes by impartial arbitral tribunals without unnecessary delay or expense.
(2) This Act aims to achieve its paramount object by:
(a) enabling parties to agree about how their commercial disputes are to be resolved (subject to subsection (3) and such safeguards as are necessary in the public interest); and
(b) providing arbitration procedures that enable commercial disputes to be resolved in a cost effective manner, informally and quickly.
(3) This Act must be interpreted, and the functions of an arbitral tribunal must be exercised, so that (as far as practicable) the paramount object of this Act is achieved.
(4) Subsection (3) does not affect the application of the Interpretation Act 1984 section 18 for the purposes of interpreting this Act.
(1) A court before which an action is brought in a matter which is the subject of an arbitration agreement must, if a party so requests not later than when submitting the party's first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.
(2) Where an action referred to in subsection (1) has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the court. (emphasis added)
Where, despite agreement by the parties to submit identified disputes to arbitration, one of those parties commences an action in a court in relation to such a dispute, s 8 provides the mechanism for making effectual the parties' agreement as to how their commercial disputes are to be resolved. The mandatory nature of s 8 ensures that the parties to an arbitration agreement are held to their bargain to resolve their disputes by arbitration rather than curial determination.[164]
party means a party to an arbitration agreement and includes:
(a) any person claiming through or under a party to the arbitration agreement; and
(b) in any case where an arbitration does not involve all of the parties to the arbitration agreement, those parties to the arbitration agreement who are parties to the arbitration; (emphasis added)
Applicable legal principles in construing s 8(1) of the Commercial Arbitration Act
A law of this kind - giving effect to an international agreement - attracts special rules of interpretation. There is now a substantial body of Australian jurisprudence on this subject, from which the following principles may be discerned:
(a) certainty and uniformity of application are of paramount importance;
(b) to that end, the rules generally applicable to the interpretation of domestic statutes give way to the rules applicable to the interpretation of treaties;
(c) because the international agreement is addressed to a much wider and more varied judicial audience than an act of a domestic legislature, the interpretation of the domestic enactment should be unconstrained by technical rules of interpretation and should instead be informed by 'broad principles of general acceptation'; and
(d) recourse may be had to the working documents of the international body by which, or through which, the agreed rules were developed.[180]
[A] national court, in the interests of uniformity, should construe rules formulated by an international convention, especially rules formulated for the purpose of governing international transactions such as the carriage of goods by sea, 'in a normal manner, appropriate for the interpretation of an international convention, unconstrained by technical rules of English law, or by English legal precedent, but on broad principles of general acceptation' ...[182]
The competing constructions and the parties' contentions
Given the interpretive principles flowing from the special character of this Act, and given the Victorian Parliament's express commitment to uniformity with the Model Law, it seems to me to be of little significance that the Act did not specifically re-enact the Model Law definition of 'court'. In the absence of any policy basis for viewing VCAT's adjudicative role as different - for the purposes of this particular Act - from the equivalent role played by the courts, I would not be prepared to infer from that omission alone that the legislature had made a deliberate decision to make s 8 narrower than the Model Law provision which it replicated.[193]
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 13] [2021] WASC 214 (Primary reasons).
[2] Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 15] [2021] WASC 307 (Separate question reasons).
[3] See Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 14] [2021] WASC 268 (Discovery reasons).
[4] Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 10] [2018] WASC 407 [4] ‑ [84] (First stay reasons).
[5] Hancock Prospecting Pty Ltd v DFD Rhodes Pty Ltd [2020] WASCA 77; (2020) 55 WAR 435 [47] ‑ [93] (first stay appeal reasons).
[6] The Hope Downs tenements are defined in the Hope Downs Deed so as to encompass the tenements in the Hope Downs area and the East Angelas area referred to later in these reasons.
[7] In addition to those substantive claims, in the Federal Court proceedings Bianca and John also challenged the validity of the Hope Downs Deed itself. Those claims were described as the validity claims.
[8] Hancock Prospecting Pty Ltd v Rinehart [2017] FCAFC 170; (2017) 257 FCR 442.
[9] Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13; (2019) 267 CLR 514 (Rinehart v Hancock).
[12] Arbitration Dispute Matters was defined to mean the following paragraphs of the amended defence:
i. 5A.2, 23.1(g), 23.1(k) - 23.1(n), 31.2 (the words 'the beneficiaries of the HFMF Trust'), 37.2(a) (the words 'the beneficiaries of the HFMF Trust'), 37.2(b), 44, 45, 47, 49 (the words in the parentheses), 50, 51 and 164 to 465 inclusive;
ii. 23.1(e), 23.1(i), 31.2, 34.2, 37.2(a), 37.3, 46, 48 and 49 inclusive; and
iii. Any other paragraphs of the Amended Defence which rely upon the matters the subject of (i) and (ii) above, but only to the extent those paragraphs so rely[.]
[13] Non-Responsive Matters was defined to mean the following paragraphs of the amended defence:
[15] Rhodes' amended reply [3.3.2.1].
[16] Rhodes' amended reply [3.3.2.3], [3.3.2.4], [4.1], [4.2], [5.1], [5.2].
[17] Rhodes' amended reply [3.4.1] ‑ [3.4.5], [4.1], [4.2], [5.1], [5.2].
[19] Rhodes' amended reply [3.4.6] ‑ [3.4.19], [4.1], [4.2], [5.1], [5.2].
[32] Rhodes' submissions [31], citing BHPB Freight Pty Ltd v Cosco Oceania Chartering Pty Ltd [2008] FCA 551; (2008) 168 FCR 169 [15]; KNM Process Systems SDN BHD v Mission NewEnergy Ltd [2014] WASC 437 [45] ‑ [46].
[33] Rhodes' submissions [31], citing BHPB Freight [14].
[42] Appeal ts 8, 10. Bianca and John made a similar submission: appeal ts 43.
[46] Etri Fans Ltd v NMB (UK) Ltd [1987] 2 All ER 763, 766 ‑ 767.
[47] Stancroft Trust Ltd v Can‑Asia Capital Co (1990) 67 DLR (4th) 131, 135.
[50] Tjungarrayi v Western Australia [2019] HCA 12; (2019) 269 CLR 150 [89].
[51] First stay appeal reasons [250]; see also Tianqi Lithium Kwinana Pty Ltd v MSP Engineering Pty Ltd [No 2] [2020] WASCA 201; (2020) 56 WAR 169 [75].
[53] First stay appeal reasons [257] - [265].
[54] Clyne v Deputy Commissioner of Taxation [1981] HCA 40; (1981) 150 CLR 1, 10.
[55] Citing Gilgandra Market Cooperative Ltd v Australian Commodities and Marketing Pty Ltd [2010] NSWSC 1209 [48] - [54]; Australian Maritime Systems Ltd v McConnell Dowell Constructors (Aust) Pty Ltd [2016] WASC 52 [92] - [93]; CPB Contractors Pty Ltd v Celsus Pty Ltd [2017] FCA 1620; (2017) 353 ALR 84 [93].
[56] Rhodes' submissions [39] - [40].
[58] Rhodes' submissions [41]; appeal ts 22 - 23, 30 - 33.
[61] Rhodes' submissions [43] - [44], addressing Primary reasons [138].
[63] Rhodes' submissions [46] - [48].
[66] First stay appeal reasons [248].
[67] Rhodes' submissions [51] - [53].
[75] See, for example, First stay appeal reasons [212].
[83] As to the scope for having regard to the court's reasons in construing its orders, see Lim v Comcare [2019] FCAFC 104; (2019) 165 ALD 217 [40] ‑ [41].
[84] Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332, 350 ‑ 351; First stay appeal reasons [126].
[85] Tanning v O'Brien (351 - 352); see also WDR Delaware Corporation v Hydrox Holdings Pty Ltd [2016] FCA 1164; (2016) 245 FCR 452 [161] ‑ [164].
[86] First stay appeal reasons [210] ‑ [211], and cases there cited.
[95] See, for example, 6FASSOC [76.1] ‑ [76.3], [80] ‑ [81A], [83] ‑ [84A].
[100] Primary reasons [219] ‑ [224].
[105] HPPL's submissions [53] - [55].
[112] HPPL's submissions [37], referring to [246] ‑ [249] and [261] ‑ [267] of Bianca and John's defence.
[117] Appeal ts 156 - 161, 207 - 210, 285.
[118] Vantage Holdings Group Pty Ltd v Donnelly [No 4] [2019] WASC 398 [60]. That statement of the principles was approved by this court in English v Vantage Holdings Group Pty Ltd [2021] WASCA 47 [56].
[123] See Bianca and John's defence [53A], [71.2], [76A.3], [76B.3], [465].
[125] Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; (2012) 200 FCR 296 [243].
[128] Muschinski v Dodds [1985] HCA 78; (1985) 160 CLR 583, 615 - 616.
[129] Giumelli v Giumelli [1999] HCA 10; (1999) 196 CLR 101 [3] ‑ [4].
[130] Bofinger v Kingsway Group Ltd [2009] HCA 44; (2009) 239 CLR 269 [47] ‑ [48].
[131] Bianca and John's defence [248] - [256], [295] - [298].
[132] See, for example, Giumelli v Giumelli [10]; John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd [2010] HCA 19; (2010) 241 CLR 1 [129].
[135] Separate question reasons [39] - [41].
[136] Separate question reasons [42].
[137] HPPL's submissions in CACV 90 of 2021 [9] ‑ [13]. HPPL did not advance oral submissions in support of the Separate Question Appeal.
[138] As already noted, in these reasons the term 'HPPL' also encompasses HDIO.
[139] See Discovery reasons, delivered on 29 July 2021.
[140] Discovery reasons [14]. The primary judge's reasons make reference to O 27 r 7, but that is evidently a slip and intended to be a reference to O 26 r 7.
[145] Brown & Co v Watkins & Co (1885) 16 QBD 125.
[146] Shaw v Smith [1886] UKLawRpKQB 193; (1886) 18 QBD 193.
[147] Birchal v Birch, Crisp & Co [1913] UKLawRpCh 70; [1913] 2 Ch 375.
[148] Gould v National Provincial Bank Ltd [1960] Ch 337.
[149] Spargos Mining NL v Fuller (Unreported, WASC, Library No 930273, 19 May 1993).
[150] HPPL's submissions [19]; appeal ts 296.
[151] HPPL's submissions [40]; appeal ts 296.
[152] Owners of the Ship 'Shin Kobe Maru' v Empire Shipping Co Inc (1994) 181 CLR 404, 421; Lewis v Sergeant Riley [2017] NSWCA 272; (2017) 96 NSWLR 274 [5]; Pezzano v The State of Western Australia [2020] WASCA 181 [116]; KSJ v GJA [2021] WASCA 98 [81].
[160] See par (a) of the definition of 'party' in s 2(1) of the Commercial Arbitration Act.
[161] Referring to the 'United Nations Commission on International Trade Law'.
[162] As adopted by UNCITRAL on 21 June 1985 with amendments as adopted on 7 July 2006.
[163] Subway Systems Australia Pty Ltd v Ireland [2014] VSCA 142; (2014) 46 VR 49 [16].
[164] Hancock Prospecting Pty Ltd v DFD Rhodes Pty Ltd [2020] WASCA 77; (2020) 55 WAR 435 [250].
[169] Hancock Prospecting Pty Ltd v DFD Rhodes Pty Ltd [264].
[171] Explanatory Memorandum to the Commercial Arbitration Bill 2011 (WA) cl 2.
[172] Hansard Legislative Assembly 15 June 2011 pages 4254 - 4257.
[173] Hansard Legislative Assembly 15 June 2011 page 4255.
[174] See eg Commercial Arbitration Act 1985 (WA) s 4.
[175] Jones D and Walker J, Commercial Arbitration in Australia under the Model Law (3rd ed, 2022) [3.290].
[176] Primary reasons [126]. See also [133].
[177] Appeal ts 82, 84 - 85, 105; First and third respondents' submissions pars 56, 58 WAB 54 - 56.
[178] Appeal ts 105; First and third respondents' submissions par 57 WAB 55.
[179] Hancock Prospecting Pty Ltd v DFD Rhodes Pty Ltd [104], [475].
[180] Subway Systems Australia Pty Ltd v Ireland [29].
[181] Shipping Corporation of India Ltd v Gamlen Chemical Co (A/Asia) Pty Ltd [1980] HCA 51; (1980) 147 CLR 142.
[182] Shipping Corporation of India Ltd v Gamlen Chemical Co (A/Asia) Pty Ltd (159).
[183] Povey v Qantas Airways Ltd [2005] HCA 33; (2005) 223 CLR 189 [60].
[184] Addy v Commissioner of Taxation [2021] HCA 34; (2021) 95 ALJR 911 [23].
[185] Shipping Corporation of India Ltd v Gamlen Chemical Co (A/Asia) Pty Ltd (159); Great China Metal Industries Co Ltd v Malaysian International Shipping Corporation, Berhad [1998] HCA 65; (1998) 196 CLR 161 [38], [71] - [72], [137] - [138], [179] - [180]; Garnett v Qantas Airways Ltd [2021] WASCA 110 [242].
[186] Povey v Qantas Airways Ltd [25]; Garnett v Qantas Airways Ltd [242].
[187] Etri Fans Ltd v NMB (UK) Ltd [1987] 2 All ER 763.
[188] Stancroft Trust Ltd v Can-Asia Capital Co (1990) 67 DLR (4th) 131.
[189] International Arbitration Act 1994 (Sing) s 6(1).
[190] First and third respondent's submissions par 58 WAB 56. See also Appeal ts 109.
[191] International Arbitration Act 1994 (Sing) s 3(1).
[192] Subway Systems Australia Pty Ltd v Ireland [39] - [41], [44] - [45].
[193] Subway Systems Australia Pty Ltd v Ireland [48].
[194] Subway Systems Australia Pty Ltd v Ireland [79].
[195] Subway Systems Australia Pty Ltd v Ireland [86], [90].
[196] Subway Systems Australia Pty Ltd v Ireland [94].
[197] Subway Systems Australia Pty Ltd v Ireland [108].
[198] Commercial Arbitration Act s 1D(3).
[199] Thiess v Collector of Customs [2014] HCA 12; (2014) 250 CLR 664 [22] (referring to Federal Commissioner of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55; (2012) 250 CLR 503 [39]).
[200] Qantas Airways Ltd v Chief Commissioner of State Revenue [2008] NSWSC 1049 [38].
[201] Tjungarrayi v Western Australia [2019] HCA 12; (2019) 269 CLR 150 [89].
[202] Re application of Fourth South Melbourne Building Society (1883) 9 VR (E) 54, 58.
[203] Tovir Investments Pty Ltd v Waverly Council [2014] NSWCA 379 [17]. See also Deputy Commissioner of Taxation (NSW) v Mutton (1988) 12 NSWLR 104, 108.
[204] Levy v Victoria [1997] HCA 31; (1997) 189 CLR 579, 601.
[205] Tianqi Lithium Kwinana Pty Ltd v MSP Engineering Pty Ltd [No 2] [2020] WASCA 201; (2020) 56 WAR 169 [76].
[206] See eg Clyne v Deputy Federal Commissioner of Taxation [1981] HCA 40; (1981) 150 CLR 1, 10 - 11.
(2016) 245 FCR 452
(1999) 196 CLR 101
(2009) 239 CLR 269
(2017) 96 NSWLR 274
(2014) 46 VR 49
(2017) 257 FCR 442
(2019) 267 CLR 514
(2012) 200 FCR 296
(1998) 196 CLR 161
(2014) 250 CLR 664
(2012) 250 CLR 503
(1997) 189 CLR 579
(2020) 55 WAR 435
(2008) 168 FCR 169
(2019) 269 CLR 150
(2020) 56 WAR 169
(1981) 150 CLR 1
(2017) 353 ALR 84
(1990) 169 CLR 332
(1985) 160 CLR 583
(2010) 241 CLR 1
(1980) 147 CLR 142
(2005) 223 CLR 189
(2021) 95 ALJR 911
(1994) 181 CLR 404
(1988) 12 NSWLR 104