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[2019] WASCA 141
Court of Appeal (WA)
2019-09-09
Quinlan CJ
Original judgment source is linked above.
CITATION : HANCOCK PROSPECTING PTY LTD -v- WRIGHT PROSPECTING PTY LTD [2019] WASCA 141
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MAX CHRISTOPHER DONNELLY as trustee in bankruptcy of LANGLEY GEORGE HANCOCK
MATTHEW JOHN KEADY as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
DOROTHEA MARGARET CAMPBELL as executor of the estate of DONOVAN FRANCES DUNCAN RHODES
Citation : WRIGHT PROSPECTING PTY LTD -v- HANCOCK PROSPECTING PTY LTD [No 11] [2019] WASC 266
File Number : CIV 2617 of 2012, CIV 2737 of 2013, CIV 3041 of 2010
Citation : WRIGHT PROSPECTING PTY LTD -v- HANCOCK PROSPECTING PTY LTD [No 12] [2019] WASC 285
File Number : CIV 2617 of 2012, CIV 3041 of 2010, CIV 2737 of 2013
Practice and procedure - Application for interim stay of case management directions - Where concurrent arbitration proceedings - Turns on own facts
(1) an interim stay of various case management directions made by the learned primary judge pending the determination of these and four other appeals;
(2) the consolidation of the two appeals filed by each appellant group; and
(3) an order that the appeals be heard together with subsisting appeals involving the same parties (as already listed for hearing on 18 and 19 November 2019).
The Deeds came into existence against the background of and were addressed to claims and threats of litigation made publicly by [John] about wrongdoing on the part of Mrs Rinehart, HPPL and others which are reiterated in the substantive claims in the [Federal Court] proceedings. The Deeds contain releases or abandonment of claims, expressed in wide terms, and promises not to make further claims. They contain assurances that they were entered into without undue influence or duress.[4]
(1) Bianca's and John's counterclaim was substantially the same as their statement of claim in the Federal Court proceedings.[8]
(2) Bianca's and John's defences denied the substantial allegations and claims made by WPPL and the Rhodes parties as to the Hope Downs tenements and repeated the allegations and claims made in their counterclaims.[9] At pars 3A and 5A of their defences in the WPPL proceedings and the Rhodes proceedings respectively Bianca and John pleaded to the effect that the Children:
[A]re entitled in equity to an interest in the tenements in respect of which [WPPL or the Rhodes parties] claims in these proceedings to be entitled in equity to an interest, for the reasons set out in their statement of claim filed in [the Federal Court proceeding] and for the reasons set out in their counterclaim pleaded below.[10]
(a) by 28 August 2019 give notice that they will not participate in the proceedings and will abide by any order or judgment of the Court; or
(b) by 20 September 2019 file and serve any defence.
(a) all discovery made by it in the proceedings, to the extent not already provided to that party and subject to compliance with any orders as to confidentiality;
(b) all expert reports filed by it in the proceedings, to the extent not already provided to that party and subject to compliance with any orders as to confidentiality.
The Hope Downs Deed was an attempt to put to rest the issues regarding ownership of property which had motivated [John] in the first place. Although the Joint Venture Agreement had been signed by this time, the Hancock Group of companies were undertaking negotiations for financing it in accordance with their contractual obligations. The need for commercial confidence remained.
Accordingly, a critical object of the Hope Downs Deed was the maintenance of confidentiality about the affairs of the Hancock Group, the trusts, the intra-family dispute and the provisions of the Deeds themselves. This object could not be clearer. Contrary to the submissions for [Bianca and John], the parties were indeed agreeing to avoid public scrutiny ... [15]
The learned primary judge's reasons for the case management orders
(a) The successful litigant is ordinarily entitled to enforce a judgment pending the determination of any appeal.
(b) It is for the applicant for a stay to move the court to a favourable exercise of its discretion. Under s 15(3) this court may only make a suspension order if there are 'special circumstances' that justify doing so and in an application for a stay under the rules this is also a usual requirement.
(c) The central issue will be whether the grant of a stay is perceived to be necessary to preserve the subject matter or the integrity of the litigation or whether a refusal of a stay could create practical difficulties in respect of the relief which may be granted on appeal. This may shortly be described as requiring the court to consider whether the right of appeal will be rendered nugatory if a stay is not granted.
(d) If it can be demonstrated that the right of appeal will be rendered nugatory if a stay is not granted, the stay will generally still be refused unless it can be established that the appeal has ultimately reasonable prospects of success.
(e) Finally, the stay may still be refused where it appears that the balance of convenience does not lie in favour of the applicant where, for example, the grant of a stay will occasion hardship to the respondent which may not be alleviated by the terms upon which the stay may be granted.[18]
(1) Is the stay necessary to preserve the subject matter or the integrity of the litigation?
(2) Does the appeal have reasonable prospects of success?
(3) Does the balance of convenience favour the grant of the stay?
[T]here is a material difference between an exercise of discretion on a point of practice or procedure and an exercise of discretion which determines substantive rights. In the former class of case, if a tight rein were not kept upon interference with the orders of Judges of first instance, the result would be disastrous to the proper administration of justice. The disposal of cases could be delayed interminably, and costs heaped up indefinitely, if a litigant with a long purse or a litigious disposition could, at will, in effect transfer all exercises of discretion in interlocutory applications from a Judge in Chambers to a Court of Appeal.[21]
[T]he inherent power of the court extends to appeals in interlocutory proceedings. The power exists because it is necessary for the administration of justice, and it is to be exercised where it is necessary to exercise it. The power to order a stay is discretionary and such an intervention should not take place lightly. The outcome which is likely if there is no stay must be so adverse and severe that the attainment of justice requires interlocutory intervention. It must be shown that it is likely that there will be some adverse consequence of allowing the proceedings under challenge to continue and that the outcome will be so difficult to remedy, or otherwise so adversely severe in its impact, that intervention by the Court of Appeal should take place notwithstanding that there has not been an opportunity for full consideration.[25] (emphasis added)
The parties' arguments on the interim stay application
In matters governed by this Act, no court must intervene except where so provided by this Act.
(1) First, the Substantive Appeals will be heard on 18 and 19 November 2019. Accordingly, it might be that any interim stay would only affect the ongoing conduct of the WPPL proceedings and the Rhodes proceedings for a relatively short time (especially when considered against the recent history of the proceedings).
(2) Second, the concessions on the part of WPPL and the Rhodes parties (properly made by senior counsel on their behalf) that they would suffer very little or no immediate prejudice were WPPL and the Rhodes parties not to receive a copy of any defence of Hope or Ginia pending the hearing of the Substantive Appeals
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 7] [2016] WASC 305 [22].
[2] Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13; (2019) 366 ALR 635 [2] - [5]. See also Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 10] [2018] WASC 407 [49] - [54] (Hancock Prospecting Pty Ltd [No 10]).
[3] Hancock Prospecting Pty Ltd [No 10] [48].
[4] Rinehart v Hancock Prospecting Pty Ltd [9].
[5] Rinehart v Rinehart (No 3) [2016] FCA 539.
[6] Hancock Prospecting Pty Ltd v Rinehart [2017] FCAFC 170; (2017) 257 FCR 442.
[7] Hancock Prospecting Pty Ltd [No 10] [79].
[8] Hancock Prospecting Pty Ltd [No 10] [60].
[9] Hancock Prospecting Pty Ltd [No 10] [58].
[10] Hancock Prospecting Pty Ltd [No 10] [64], [75]. This was responsive to pleas at pars 3A and 5A of the statements of claim in the WPPL proceedings and the Rhodes proceedings respectively to the effect that the Children were alleged in the Federal Court proceedings to be entitled in equity to an interest in the relevant tenements.
[11] Hancock Prospecting Pty Ltd [No 10] [82] - [84].
[12] Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 11] [2019] WASC 266 (Hancock Prospecting Pty Ltd [No 11]).
[13] Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 12] [2019] WASC 285 (Hancock Prospecting Pty Ltd [No 12]).
[14] Rinehart v Hancock Prospecting Pty Ltd.
[15] Rinehart v Hancock Prospecting Pty Ltd [45] - [46]. See also at [26] - [27], [32] - [33], [48] - [49].
[16] Eastland Technology Australia Pty Ltd v Whisson [2003] WASCA 307; (2003) 28 WAR 308 [9].
[17] Hearne v Street [2008] HCA 36; (2008) 235 CLR 125 [3], [56], [106] - [108].
[18] Tradesman Technologies Pty Ltd v Ameduri [2012] WASCA 168 [22].
[19] Dodds v Kennedy [2011] WASCA 32 [5].
[20] Girgis v Poliwka [2016] WASCA 158 [1] (referring to Pearce v International Mining Technologies Ltd [2009] WASCA 239 [25] - [26]).
[21] See Re the Will of FB Gilbert (Dec) [1946] NSWStRp 24; (1946) 46 SR (NSW) 318, 323 (as adopted in Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc [1981] HCA 39 (1981) 148 CLR 170, 177).
[22] Nikolaidis v Legal Services Commissioner [2005] NSWCA 91 [18].
[23] Thomson v Young [2013] NSWCA 300.
[25] Nikolaidis v Legal Services Commissioner [18].
[26] Nikolaidis v Legal Services Commissioner [20].
[27] Nikolaidis v Legal Services Commissioner [20].
[28] Re the Will of FB Gilbert (Dec) (323).
[29] See House v The King [1936] HCA 40; (1936) 55 CLR 499, 505.
[30] See Hancock Prospecting Pty Ltd [No 11] [24]; Hancock Prospecting Pty Ltd [No 12] [8] - [12].
[31] Hancock Prospecting Pty Ltd [No 12] [11].
[32] The finding is not identified in the proposed grounds. Cf Supreme Court (Court of Appeal) Rules 2005 (WA), r 32(4)(d).
[33] ts 1911 (1 March 2019); ts 2005 (1 August 2019). See ts 1928 - 1930 (1 March 2019).
[34] See Supreme Court (Court of Appeal) Rules 2005 (WA) r 44 and the r 3 definition of 'interim order' (at par b).
[35] Elspan International Ltd v Aerospatiale Holdings Australia Ltd (1992) 67 ALJR 177, 178.
[36] Fourth and fifth respondents' submissions dated 26 August 2019, par 25.
[37] Rules of the Supreme Court 1971 (WA) O 21 r 3(1).
[38] Hancock Prospecting Pty Ltd [No 11] [27].
[39] See eg appellant's case in consolidated appeals CACV/12 - 13/2019, par 75. Cf appellant's case in consolidated appeals CACV/16 - 17/2019, pars 17, 21 - 22.
[40] Cf Apache Northwest Pty Ltd v Western Power Corporation (1998) 72 ALJR 1136 [23].
(2019) 366 ALR 635
(2017) 257 FCR 442
(2003) 28 WAR 308
(2008) 235 CLR 125
(1981) 148 CLR 170
(1936) 55 CLR 499
(1992) 67 ALJR 177
(1998) 72 ALJR 1136