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[2005] VSC 4
Supreme Court of Victoria
2005-01-12
GILLARD J
Original judgment source is linked above.
CROSS-VESTING APPLICATION - Relevant matters - Weight to be attached - Cross vested to Supreme Court of South Australia.
(a) A proceeding (in this sub-section referred to as the `relevant proceeding') is pending in the Supreme Court (in this sub-section referred to as the `first court'); and
(b) It appears to the first court that -
(i) . . .
(ii) . . .
or
(iii) it is otherwise in the interests of justice that the relevant proceeding be determined by the Supreme Court of another State or of a Territory -
the first court shall transfer the relevant proceeding to that other Supreme Court."
"Rather, the court is required by statute to ensure that cases are heard in the forum dictated by the interests of justice ... If it appears to that court that it is in the interests of justice that the proceedings be determined by another designated court, then the first court shall transfer the proceedings to that other court. There is a statutory requirement to exercise the power of transfer whenever it appears that it is in the interests of justice that it should be exercised. It is not necessary that it should appear that the first court is a 'clearly inappropriate' forum. It is both necessary and sufficient that, in the interests of justice, the second court is more appropriate."[4] (Emphasis added)
"The requirement to order transfer thus is imperative once the identified criteria appear to a Supreme Court. No question of discretion arises."
"The only lodestar that a judge may steer by is, what do the interests of justice dictate should be done? It is inapt to speak in terms of onus. Bearing in mind that the court may make an order of its own motion the language of onus being discharged is inapplicable."
"Section 5(7) indicates that it is inapt to speak of the applicant for an order for transfer as bearing a burden of persuasion analogous to an onus of proof."
"In relation to transfer, the common policy reflected in each of the individual enactments is that there must be a judicial determination by the court in which proceedings are commenced either to transfer or not to transfer the proceedings to one of the other nine based, broadly speaking, upon considerations of the interests of justice ... It calls for what I might describe as a 'nuts and bolts' management decision as to which court, in the pursuit of the interests of justice, is more appropriate to hear and determine the substantive dispute." (Emphasis added)
His Honour's observations were quoted with approval in the joint judgment in Schultz at paragraph 13.
"Reference is sometimes made to one forum or another being the 'natural forum'. Such description is usually based upon a consideration of 'connecting factors' described by Lord Goff in Spiliada as including matters of convenience and expense, such as availability of witnesses, the places where the parties respectively reside or carry on business, and the law governing the relevant transaction. Lord Templeman describes such factors as 'legion', and said that it was difficult to find clear guidance as to how they are to be weighed in a particular case."
"In many cases there will be such a preponderance of connecting factors with one forum, that it can readily be identified as the most appropriate, or natural, forum. In other cases, there might be significant connecting factors with each of two different forums. Some of the factors might cancel each other out. If the action is between two individuals, and the plaintiff resides in one law area and the defendant in another, there may be no reason to treat the residence of either party as determinative, although, as already noted, it would ordinarily be the residence of the defendant that is important to establish jurisdiction. Weighing considerations of costs, expense, and convenience, even when they conflict, is a familiar aspect of the kind of case management involved in many cross-vesting applications."
(i) In a tort case, the place where the wrong occurred.
(ii) Residence of the parties and where it is an individual, the place where he or she resides, and in the case of a corporation where it carries on business. The latter is not necessarily its place of registration, although of course the latter is important to ensure jurisdiction.
(iii) The convenience to the parties and witnesses. However in this day and age this factor may not carry substantial weight, because of the ability to move witnesses around Australia at small expense and little inconvenience, and also because of the provision of evidence by audio visual link.
(iv) The law governing the proceeding.
(v) The experience of a particular Court and its ability to provide an efficient and speedy trial, for example a Court with particular evidentiary and procedural rules hearing particular types of cases.
(vi) The condition of a party, for example, in a personal injury case where the life expectancy of the plaintiff is limited requiring a speedy outcome.
"To take an example at the other extreme, it might be because a plaintiff is near death and has a much stronger prospect of an early hearing in one court than in another. The interests of justice are not the same as the interests of one party, and there may be interests wider than those of either party to be considered. Even so, the interests of the respective parties, which might in some respects be common (as, for example, cost and efficiency), and in other respects conflicting, will arise for consideration. The justice referred to in s.5 is not disembodied, or divorced from practical reality. If a plaintiff in the tribunal were near to death, and, in an application such as the present, it appeared to the Supreme Court to which transfer was sought could not deal with the case expeditiously, that would be a consideration relevant to the interests of justice. Justice would ordinarily dictate that the interest of the plaintiff in having a hearing would prevail over the interest of the defendant in such benefit as it might obtain from the plaintiff's early death. The capacity of the tribunal to deal expeditiously with cases has always, and rightly, been regarded as relevant to the interests of justice, bearing in mind the condition of many sufferers from dust diseases."
"To determine which court is, in the interests of justice, the appropriate court, it is necessary to enquire, in the case of a tort, as to what is the place of the tort. Indeed, in the context of administering the
co-operative national scheme ... where the place of the tort and the residence of the parties coincide, this will generally be determinative of the issue of 'appropriate court' although other factors may need to be assessed in the process of determining where the interests of justice lie."[12]
(i) The place of the tort was South Australia;
(ii) The Courts of that State provide the forum which gives effect to the reasonable expectations of the parties;
(iii) The coincidence of the lex fori and the lex loci delicti will avoid debates concerning substantive and procedural law;
(iv) To a significant degree the witnesses at trial would come from South Australia and in any event audio visual link could avoid inconvenience to others.
"It seems to me that this is a clear case of cross-vesting. The Supreme Court of South Australia is well equipped to handle the case. It can do equal justice between the parties. It can do it by applying South Australian substantive and procedural law without the necessity to distinguish what is substantive and what is truly procedural in the unique, and far from the unambiguous relevant provisions of the Tribunal Act. It will not need to decide any constitutional issues."
"But of at least equal importance to all of these is the fact that the events giving rise to the claim were at the time subject to, and regulated by the law of the jurisdiction where they occurred, and in respect of the evaluation of which the Court of that place should be the most experienced and efficient. One relevant law will usually be the law relating to insurance. Policies are likely to have been implemented on the basis of the law there relating to damages, remedies, courts and appeals. In other ways also, with respect, for example, to relations between employers and employees, revenue laws and commercial laws, and compliance with safety and environmental standards, it may be assumed that the parties have organised their affairs with an eye to the State laws governing them."
(i) The place of the tort is South Australia. What flows from this, is that any difficult questions of the law to be applied would be avoided because South Australian law would apply, that is, statute substantive and procedural. As already noted, BHP has not pleaded that the law to apply in the proceeding in this Court is South Australian law, save and accept for taking the limitation defence. As I read the defence, if the matter was to proceed in this Court, the law which would apply in respect of liability and damages if the limitation defence is overcome would be Victorian law. I raised this in the course of argument, and neither counsel demurred from that conclusion. I did ask counsel whether there were any statutory provisions in South Australia which would be relevant to questions of liability and damages and which were in any way different to Victorian law, and I was informed there was not. As I have already stated, an application to extend time under the South Australian Act could be heard by this Court. However, the point does remain that the litigation of the dispute in the Supreme Court of South Australia would avoid any problems associated with applicable law if they were raised.
(ii) The plaintiff resides in South Australia. Although the plaintiff's solicitors' affidavit is somewhat vague about the plaintiff's background, it is clear that he resides in South Australia even though during his working life he lived in other parts of Australia.
(iii) The plaintiff is being treated in South Australia by South Australian doctors and it is anticipated that they would give evidence at trial. Of course some of these witnesses could give evidence via audio visual link, but I would think there would be a substantial cost involved in bringing over to this State a South Australian doctor to give evidence.
(iv) BHP, although registered in this State, has offices in South Australia and carries on business in that State.
(v) BHP has engaged a medical practitioner to examine the plaintiff and prepare a report. He practises in South Australia and will be seeing the plaintiff in February 2005. I do not place any real weight on this fact, because it would be open to BHP to engage medical practitioners in this State. To date it has not engaged a medical practitioner.
(vi) In addition to the plaintiff giving evidence, it would be expected that members of his family and close friends would give evidence in respect to damages including evidence involving patient care and the effect on the plaintiff of the debilitating disease and impact on his life. I accept that most of these witnesses would come from South Australia. Both parties seem to be shy about identifying witnesses on liability. I would expect that the plaintiff's solicitors over the years have built up a vast knowledge of the effects of exposure to asbestos and the state of knowledge of those who used asbestos products at the relevant time. I would have thought it would not have been difficult for the plaintiff's advisers to inform the court as to the witnesses who would be called on liability and their residence. Equally, I would expect BHP to have much the same knowledge of these matters and, again, I am surprised that BHP has not called any specific evidence concerning witnesses who may be called in respect to liability and where they reside. There is a veiled suggestion that if witnesses are alive they most probably would live in South Australia. I would be speculating to reach that conclusion. The Whyalla shipyards closed in the year 1978. Accordingly, I place no weight on the location of witnesses on liability on either side. The fact is that I am not persuaded by either party as to where such witnesses reside at present.
(vii) It is said that the cost of bringing the proceeding in this State was probably more than bringing the proceeding in South Australia. Indeed, a deponent who swore an affidavit on behalf of BHP, Scott Andrew Hey, gave evidence that the reason why BHP wished to transfer the proceeding to South Australia was because it was "more cost efficient". In particular he emphasised that Court proceedings being heard in Sydney or Melbourne were usually more expensive than Court proceedings in South Australia. Although I note his evidence, I am not prepared to conclude that the actual legal costs would be greater if heard in Victoria than in South Australia. Indeed, Mr Gordon of counsel on behalf of the plaintiff highlighted one item in the cost scale of both Courts, which showed that the attendance of the solicitor was $250 an hour in South Australia whereas it was $216 per hour in this State. It is difficult to make any assessment because it does depend upon a variety of factors as I have already pointed out. I am not prepared to say that on a cost basis it would be much greater in this State. In that respect I refer to and adopt what Callinan, J. said in the Schultz case, that a cost comparison was of little weight unless it was established that they would be grossly disproportionate. It cannot be denied, however, that to move lawyers, parties and witnesses from South Australia to this State would add expense and as Mr Parker on behalf of BHP pointed out, this has been recognised by the fact that the solicitors for the plaintiff were prepared to meet some of the costs. Whilst I do accept that to move expert witnesses to this State may involve an increase in expense, I am not prepared to conclude that it would be much greater than bringing the proceeding in South Australia.
(viii) The lawyers acting for the parties are located in Adelaide. It is correct that the plaintiff is represented by Slater & Gordon through its Adelaide office. Equally Piper & Alderman have an office in Adelaide, indeed it is said to be their principal office. However, in this day and age it is not difficult to prepare a case in one State and then move to the other State for the purposes of the hearing. I do not place any real weight on the location of lawyers. Indeed, Slater & Gordon has a big presence in this State and also Piper & Alderman have an office in this State. The latter appear at the moment to be conducting the litigation from Sydney.
(i) That BHP is registered in this State and its corporate headquarters are in Melbourne. It appears to be conducting this litigation from its office in Melbourne, although at the moment it is using solicitors from interstate.
(ii) The case can be heard more expeditiously in this Court than the Supreme Court of South Australia and if this is so, and the plaintiff succeeds, he will have funds to provide more extensive treatment which may prolong his life, he will be comforted to some extent by the fact that the litigation is over and, finally, that he will have peace of mind as to the resolution of his private and family affairs prior to his death. It will be necessary to further consider this aspect.
(iii) That a witness, Dr Kilpatrick, who practises in this State and who is an industrial hygienist will obtain an occupational history from the plaintiff and his evidence will be produced at trial. The engagement is a decision made by the plaintiff's solicitors. I do not expect that the cost involved in obtaining instructions and providing a report will be any different whether the proceeding is heard here or in South Australia. If heard in South Australia, no doubt he could give his evidence via audio visual link. I would not expect that that would involve any expense of substance.
"He (the plaintiff) relies solely on the fact that he is likely to have his case heard more quickly in the Supreme Court of Victoria than the Supreme Court of South Australia. This will enhance the prospect that the matter will be resolved in his lifetime, that he will have, for a time, for treatment or other purposes the use of any damages he might be awarded, and he will have the peace of mind attendant upon the resolution of his affairs before his death."
That this proceeding No. 9721 of 2004 between William John Charles Ewins and BHP Billiton Ltd be transferred to the Supreme Court of South Australia.
[1] See Dickin v BHP Billiton Ltd & Ors [2004] VSC 215 and Reid v Agco Australia Ltd & Ors [2000] VSC 363.
[4] See para.14 and also Gummow, J. at para.77.
[6] See for example Chapman v Jansen (1990) 100 FLR 66 (Full Court of the Family Court), Mullins Investments Pty Ltd v Elliott Exploration Co Pty Ltd [1990] 1 WAR 531, McKee v Rudy Van Haften & Anor [2001] VSC 251 at para.18.
[9] See para.(c) of the preamble and s.5(2)(b)(C).
[10] [1987] AC 460. See observations of Rogers, A.J.A. at pp.727-79 in the Bankinvest case and the joint judgment in Schultz at paras.18-19.
[11] [2000] NSWCA 353; (2000) 50 NSWLR 357 at 361
[12] Quoted with approval by Kirby, Jl in Schultz at paragraph 165.
Ewins
BHP Billiton Ltd [2005] VSC 4
(1988) 14 NSWLR 711
(1990) 100 FLR 66
(2000) 50 NSWLR 357