[2023] VSCA 73
General information, not legal advice.
Court of Appeal (Vic)
2023-04-05
Mr P, Button J, Beach JA, Forrest JA, Sifris JA
Original judgment source is linked above.
INJUNCTIONS - Interlocutory injunction granted to restrain company directors from holding meeting - Prima facie case established - Balance of convenience favoured grant of injunctions - Application for leave to appeal - Judgment not attended with sufficient doubt - Serious injustice not established - Application refused.
Niemann v Electronic Industries Ltd [1978] VicRp 44; [1978] VR 431, applied.
(a) the First and Second Defendants [being Mathew and Kim respectively] have engaged in oppressive conduct. > > (b) the First and Second Defendants be removed as directors of Geelong Quarries Pty Ltd. > > (c) the shares issued to Markee Custodians Pty Ltd be cancelled. > > (d) the First and Second Defendants compensate Geelong Quarries Pty Ltd for all loss and damage occasioned by them.
(a) Until further order, or the determination of Supreme Court Proceeding S ECI 2020 03342 and Supreme Court Proceeding S ECI 2020 02806, the First and Second Defendants are restrained from:
(i) acting as directors of Geelong Quarries Pty Ltd;
(ii) in any capacity, appointing any other directors of Geelong Quarries Pty Ltd;
(iii) issuing any further shares in Geelong Quarries Pty Ltd to any other person or entity;
(iv) dealing with the shares held by them (either directly or beneficially) in Geelong Quarries Pty Ltd;
(v) terminating the Quarry Agreement dated 1 July 2013 between Galaxie Investments Pty Ltd and Geelong Quarries Pty Ltd; and
(vi) terminating the existing contractual arrangements between Hoare Bros Pty Ltd and Geelong Quarries Pty Ltd.
(b) Until further order, or the determination of Supreme Court Proceeding S ECI 2020 03342 and Supreme Court Proceeding S ECI 2020 02806, an independent director (in addition to the Plaintiff) be appointed to Geelong Quarries Pty Ltd.
The family trusts and the will - the family arrangements
There are two key trusts involved in the dispute.
Galaxie is the corporate trustee of the Peter Hoare Family Trust (Peter Hoare Trust).
Amberlowe Pty Ltd (Amberlowe) is the trustee of the Hoare Family Settlement Trust (Family Trust). ...
Prior to his death, Peter executed a Will, and a non-binding letter of instructions entitled 'Testamentary Request' (Letter of Instructions).
The Will records that:
(a) Anthony, Mathew, Roache and Nagle are to be executors;
(b) Peter bequeathed the 5 shares he held in Amberlowe to his trustees to be held by them in accordance with the Will;
(c) Peter bequeathed:
(i) $100,000 and all household furniture and effects to his wife, Dianne Hoare (Dianne); and
(ii) the rest and residue of the Estate to the trustees upon trust to sell, call in collect and convert the same into money and to:
(B) pay the residue to Amberlowe to be held pursuant to the terms of the Family Trust deed.
The Corpus Beneficiaries under the Family Trust were the Amberlowe directors, shareholders, employees, spouses and children of employees.
Kim was not a Corpus Beneficiary under the Family Trust deed. [Mathew noted that, as a sibling of Corpus Beneficiaries, Kim is within the class of general beneficiaries, as defined in the Family Trust Deed and that, by cl 7, the Trustees were empowered to transfer any part of the Trust Fund to one or more beneficiaries.]
At the time of his death, Peter was a co-director of Galaxie with Anthony.
The current shareholding of Galaxie is:
(a) 4 ordinary shares: Peter;
(b) 1 ordinary share: O'Hare Pty Ltd (being a company controlled by Mathew); and
(c) 1 ordinary share: Anthony. ...
Galaxie holds the Liberton property in its capacity as trustee of the Peter Hoare Trust.
The specified beneficiaries under the Peter Hoare Trust are Anthony, Mathew and Kim.
Mathew has been, since 30 August 2011, the sole director of Galaxie.
The status quo, so far as is relevant to this application, is that [Hoare Bros] provides quarrying services to GQ, as it has done since about 2013. While I accept that the deterioration in the relationship between the warring siblings has made the relationship between GQ and [Hoare Bros] difficult and fractious, riven, as it is, by mutual mistrust, in my view the evidence does not show any urgent need to terminate the agreement between GQ and [Hoare Bros].
Similarly, I accept that, other considerations aside, for corporate good order and to ensure that important commercial matters of the kind identified by Mathew and Kim are addressed, it would be in GQ's interests to have a formal agreement with whichever entity conducts the quarrying operations. However, [Hoare Bros] and GQ have operated informally for many years and there is no urgency in achieving a formal contract; in other words, the suboptimal situation can continue for another few months (or even years).[9]
If a meeting of the board of GQ is held and the resolutions to terminate the agreement between GQ and [Hoare Bros] and conduct a tender pass, those resolutions will only be valid if Mathew and Kim were validly appointed directors. If Anthony ultimately succeeds, Mathew and Kim would not have been validly appointed directors and any actions they took in that capacity may be impugned, or they will be removed as directors. Considering whether to preserve the status quo involves considering whether their proposed actions as directors should be permitted to proceed while their appointments are under challenge, or their removal is otherwise sought on the basis of oppressive conduct. I do not accept that an interlocutory injunction cannot (as Mathew appeared to argue) be made to preserve the status quo and prevent steps being taken as a director to terminate an informal agreement because the substantive action attacks the directors' original (and continued) appointment and not the general ability of the company's board to terminate an informal contract on reasonable notice.
Paragraph 1(b) of the originating process seeks an order that Mathew and Kim be removed as directors of GQ. In submissions, Anthony confirmed that the removal was sought on the basis that their conduct in the management of GQ involved oppressive conduct, as well as on the basis that there were defects in their appointments. As to the latter, Anthony also confirmed that the argument he will put in support of paragraph 1(a) of the originating process, which seeks a finding that Mathew and Kim have engaged in oppressive conduct, will include a contention that the oppressive conduct includes Mathew's allegedly wrongful taking of Peter's shares in GQ in 2011.[10]
I cannot conclude for the purposes of this interlocutory application that Anthony is estopped from challenging Mathew and Kim's appointments ...[11]
The underlying issues, including insofar as they arise in the foreshadowed characterisation of oppressive conduct, involve the proper administration of a deceased estate, and the adherence of trustees to the terms of the two trusts. Accordingly, it is not obvious that the positions that Anthony may have previously taken in his personal capacity (and at a time when he was ignorant of the terms of the two trust deeds) preclude Anthony's apparent change of course.[12]
First, it is clear that Anthony is alive to the tensions - to adopt a neutral expression - between his line of argument advanced in this proceeding and the position he has taken in the Distribution Proceeding and the Separation Proceeding. The Consolidation Application will, of necessity, need to adopt a single, consistent course (cf Mathew's submission that it would only replace a 'dog's breakfast' spread over three proceedings with a 'consolidated dog's breakfast'). Accordingly, I do not consider that the present tension between the positions adopted in this proceeding and the other proceedings should be regarded as fatal to (or even seriously undermining of) the application for interlocutory relief before me.
Secondly, and relatedly, given that the interlocutory injunction is sought until the 'earlier of' determination of the Consolidation Application or further order of the Court, and an undertaking has been proffered to bring on the Consolidation Application within two weeks, the interlocutory injunction sought is of limited duration. While Mathew submitted that the grant of an interlocutory injunction would just involve handballing or deferring the issue, in my view, the Court will be in a much better position to assess the strength of Anthony's claims (and those of his involved corporate entities) once that Consolidation Application has been put on and determined. Accordingly, I do not accept that the Court is in as good a position now, as it will be when the proposed consolidated proceeding has been fully articulated, to assess whether the status quo ought to be preserved until trial, or some other earlier point.
Thirdly, the timing of the Consolidation Application is also relevant for the purposes of assessment of the balance of convenience. There is no evidence that there is a pressing need for GQ to conduct the foreshadowed tender. The reasons Mathew and Kim advance for considering that the present agreement with [Hoare Bros] should be terminated, a tender conducted and a formal agreement concluded with the successful tenderer, are reasons largely based on corporate good order and a desire to see a formal agreement cover certain matters they regard as important. But there is no reason to think that the current informal arrangement cannot continue to be conducted for some time to come, despite the operations of GQ being made practically difficult by the mistrust between the siblings (Mathew and Kim on one side, and Anthony on the other) and that difficulty extending to the quarrying operations involving [Hoare Bros] (with Anthony complaining about [Hoare Bros'] invoices not being paid in a timely way, and Mathew and Kim complaining about the adequacy of the information being provided by [Hoare Bros]).
Fourthly, and turning back to the prima facie case issue, in my view, it would involve the Court adopting an unduly narrow approach to effectively shut its eyes to the existence of the two other proceedings and the foreshadowed Consolidation Application. In my view, having regard to the breadth of the Court's power to grant an interlocutory injunction pursuant to s 37 of the Supreme Court Act 1986 (Vic) where it is 'just and convenient' to do so, and O 38 of the Rules, it is appropriate to have regard to the Consolidation Application and the issues that will come together in a single proceeding if that application succeeds. I also note that the Court can grant interlocutory injunctions before proceedings are issued, having regard to the issues that foreshadowed proceedings will raise. While the analogy ought not be taken too far, the foreshadowed Consolidation Application is, in some ways, akin to a foreshadowed proceeding. Further, the parties' arguments on this application - including those of Mathew, and Kim, who adopted Mathew's submissions - travelled extensively into the other proceedings.
The issues to be agitated in the consolidated proceeding (if the Consolidation Application succeeds) include (as the Separation Proceeding is presently framed) the question of whether GQ is part of the 'Hoare Bros Business'. In the Separation Proceeding, Anthony says it is, and that he reached an agreement with Mathew that Mathew would 'exit from the Hoare Bros Business'. The relief sought in that proceeding includes an order that H4MC transfer its shares in GQ to Anthony, or his nominee. The defendants in that proceeding (which include Mathew) dispute that GQ is part of the Hoare Bros Business. If Anthony succeeds in those allegations, Mathew will be removed from GQ. As matters stand, Mathew is a director of GQ and, unless restrained, will be in a position to, and proposes to take action to, terminate the agreement of many years' standing between GQ and [Hoare Bros]. All of which is to say that the interlocutory relief sought in this proceeding also seeks to preserve the status quo in a way that connects with the broader litigious landscape so far as the existing Separation Proceeding, and the foreshadowed Consolidation Application, are concerned.[13]
If Anthony (or more accurately, upon joinder, ET as the member of GQ) establishes oppressive conduct arising from Mathew and/or Kim's actions, the Court's discretion to grant a remedy under s 233 will be enlivened. While I was not addressed on the remedies that may be ordered if the oppression case were to succeed, the Court's discretion under s 233 is broad, and the originating process seeks orders removing Mathew and Kim as directors. Quite obviously, if they are removed as directors, they will not be in a position to vote on any resolutions affecting the affairs of GQ's business, whether concerning the services presently provided by [Hoare Bros] or otherwise. Further, the relief granted upon a successful oppression case may involve steps to unwind and reconstitute the shareholdings in GQ, should the case succeed on the basis of the initial transfer of the 10 shares to Mathew constituting oppressive conduct.
While the oppression case has not been formulated with any precision, and it was somewhat difficult to understand from submissions exactly how it would be put, the lack of specificity in the detail of the case is largely a function of the proceeding having gone into abeyance soon after being issued to permit mediation to be pursued, and the speed with which the application for interlocutory relief had to be put on after Mathew issued the notice calling the board meeting, mere hours after this proceeding was effectively re-enlivened by Anthony's 1 August 2022 email foreshadowing the Consolidation Application.
While, perhaps due only to the lack of elaboration of the oppression case, and the extensive, sprawling factual canvas, I am unable to describe the prima facie case as a strong one, as set out below, in my view the merits on the balance of convenience are strong, such that a more marginal prima facie case (albeit one that still meets the necessary threshold) still suffices to warrant the grant of an interlocutory injunction.
As stated, I have concluded that a prima facie case in the requisite sense has been established in the present proceeding, even without having regard to the proposed Consolidation Application. However, and in addition, it is, in my view, appropriate to have regard to the wider factual canvas, which includes the Consolidation Application which will, amongst other things, bring in another basis upon which it is contended Mathew will need to exit GQ, namely the so-called Separation Agreement. The fact that the Separation Proceeding includes an issue as to whether or not GQ forms part of the Hoare Bros Business was referred to by Mathew as well as by Anthony. A prima facie case (in the requisite sense) also exists in relation to that matter which, if the foreshadowed Consolidation Application succeeds, will be a question in this proceeding (as consolidated).
Anthony advanced his argument on the basis that the Consolidation Application was relevant to the application for interlocutory relief. The application itself was also framed seeking orders until the determination of the Consolidation Application. Mathew and Kim had the opportunity to address the relevance of the Consolidation Application, but their contentions relating to it focused on a different point: namely to the effect that it appeared a consolidated statement of claim would involve Anthony changing course and no longer conducting the litigation on the same footing he has conducted the other two proceedings for some time. Nevertheless, the argument before me was conducted on the basis that the wider litigious landscape between the siblings was relevant.
The interlinking of this proceeding and the other proceedings is further borne out by Mathew's and Kim's affidavit material also delving into aspects of those proceedings.[14]
In my view, the balance of convenience overwhelmingly favours the grant of the interlocutory relief. The informal arrangement between [Hoare Bros] and GQ has been operating since in or around 2013. As noted above ... there is no pressing need for the quarrying services to be put out to tender in the short-term. Moreover, as Mathew's counsel frankly stated in submissions, if a tender were to be conducted, [Hoare Bros] 'will presumably not be the front runner' and would, in effect, have to undercut any other tenderer to have a prospect of succeeding. Against that, if Anthony (and ET) ultimately prevail at trial (whether in this proceeding in isolation or in a consolidated proceeding), Mathew and Kim will (amongst other matters) be removed as directors. Mathew and Kim will also (if this aspect of the Consolidation Application succeeds) be restrained from exercising their powers as directors of GQ and the proposed independent managers would be appointed directors of GQ. It is relevant to note, in this regard, that Anthony earlier filed an interlocutory process in this proceeding on 21 October 2021. While the hearing of that application was deferred to allow mediation to occur, had it been heard in the ordinary course and had it succeeded, Mathew could not have served the Mathew Notice, which triggered this application for urgent interlocutory relief.
I also take into account that, if no interlocutory injunction were ordered, the writing is on the wall that the informal agreement between [Hoare Bros] and GQ will be terminated and another company will be appointed to perform quarrying services. In view of the impact Anthony says this will have on staff of [Hoare Bros], and the likelihood of those events triggering yet more litigation, possibly involving a third party tenderer (if put on notice of Anthony's claims), this is not a case in which damages would be an adequate remedy. Rather, the status quo ought to be preserved, at least until the Consolidation Application is on foot and determined.
For these reasons, in my view, it is clear that the lesser risk of injustice lies in preserving the status quo until the hearing or determination of the Consolidation Application, or other order. The worst case for Mathew and Kim (and GQ itself) is that they have to continue to muddle along with the present arrangements, with the attendant aggravations those arrangements entail for both sides, for several months.
Conversely, if the interlocutory relief is not granted, and GQ holds the meeting in question and terminates the informal quarrying services agreement with [Hoare Bros], it is likely that a third party will be formally appointed and common sense would dictate that (given the need for expensive quarrying machinery, hire agreements and staff) a contract with a third party quarrying operator would not be of such short duration that Anthony could procure [Hoare Bros] simply stepping back in if he prevails at trial. In other words, the status quo will not be able to be restored. Further, Anthony deposed that a material percentage of [Hoare Bros'] income is from the quarrying operations at Liberton and that at least some of [Hoare Bros'] staff would have to be made redundant if [Hoare Bros] were to lose the quarrying services work conducted for GQ.[15]
OTHER MATTERS:
...
The plaintiff undertakes to:
(i) forthwith amend the originating process to join ET Investments (Vic) Pty Ltd as a plaintiff, and H4MC Pty Ltd, Markee Custodians Pty Ltd and Geelong Quarries Pty Ltd as defendants;
(ii) make his application to consolidate proceedings S ECI 2020 02806, S ECI 2020 03342 and S ECI 2021 03781 by 4:00pm on 22 September 2022 in generally the terms set out in the email dated 1 August 2022 exhibited to pages 203-4 of exhibit bundle 'APH1' to the Affidavit of Anthony Hoare sworn on 23 August 2022 (the Consolidation Application).
- The plaintiff, ET Investments (Vic) Pty Ltd and Hoare Bros Pty Ltd undertake that they will abide by any order the Court may make as to damages in case the Court shall hereinafter be of the opinion that the defendants shall have sustained any loss, by reason of these orders, which the plaintiff ought to pay.
(a) calling or participating in any meetings of Geelong Quarries Pty Ltd (or voting on any resolutions) for the purpose of terminating the contractual arrangements between Hoare Bros Pty Ltd and Geelong Quarries Pty Ltd; > > (b) voting on the resolutions set out in the first defendant's notice of board meeting dated 1 August 2022; and > > (c) proceeding with the meeting proposed to be convened pursuant to the first defendant's notice of board meeting dated 1 August 2022.
Ground 1 - Wrong test applied - onus reversed
(a) The Learned Primary Judge whilst identifying the correct test for the grant of an interlocutory injunction (J35-8) erred in:
(i) failing to apply the correct test properly or at all;
(ii) applying in substance a different and incorrect test namely does the status quo need to be changed? (J40, 46, 63, 66, 78) which test reversed the onus.
(b) Had the Learned Primary Judge applied the correct test as she identified it, the Learned Primary Judge would have found:
(i) the applicant for interlocutory relief, Anthony Hoare, had not established a prima facie case for the relief he sought.
(ii) the balance of convenience or injustice did not favour the grant of the interlocutory injunction.
(iii) damages would in any event be an adequate remedy.
Ground 2 - Estoppel, res judicata, issue estoppel, abuse of process
(a) The Learned Judge erred in failing to find or hold that Anthony Hoare was estopped and precluded from relying in support of his application for an interlocutory injunction on his contention that Mathew Hoare and Kim McDonald were not validly appointed directors of Geelong Quarries by reason of the following:
(i) In proceeding S ECI 2020 01838 Anthony Hoare sought a declaration that Mathew Hoare and Kim McDonald were not validly appointed as directors of Geelong Quarries and consequential relief.
(ii) Proceeding S ECI 2020 01838 was settled and finally resolved on the basis of, inter alia, an acknowledgment by Anthony Hoare to the Court and Mathew Hoare and Kim McDonald recorded in Other Matters Part A of the Orders of Almond, J. made on 24 June 2020 that Mathew Hoare and Kim McDonald had been validly appointed as directors of Geelong Quarries and otherwise dismissing that proceeding by consent.
(iii) Mathew Hoare and Kim McDonald had acted on such acknowledgment and a dismissal of the said proceeding and conducted the affairs of Geelong Quarries as the majority of its directors for two years thereafter including holding 13 board meetings (J Fn11).
(b) Had the Learned Primary Judge found Anthony Hoare was estopped and precluded from relying in support of his application for an interlocutory injunction from contending Mathew Hoare and Kim McDonald were not validly appointed directors of Geelong Quarries, the Learned Primary Judge would have dismissed Anthony Hoare's application for an interlocutory injunction.
Ground 3 - No prima facie case for relief[18]
(a) The Learned Primary Judge erred in failing to find or hold that Anthony Hoare had failed to demonstrate he had a prima facie case for relief in respect of oppression in relation to the conduct of the affairs of Geelong Quarries, the oppression case being 'not articulated with any precision' (J70) 'somewhat difficult to understand from submissions exactly how it would be put.' (J70) and 'there being a lack of elaboration of the oppression case' (J71).
(b) The Learned Primary Judge should have found:
(i) Anthony Hoare had failed to either articulate or establish a prima facie case of oppression either of Anthony Hoare or his company ET Investments, Anthony Hoare not being a shareholder in Geelong Quarries and ET Investments not then being a party to the proceeding.
(ii) Anthony Hoare's complaints in the proceeding, the Separation Proceeding, the Distribution Proceeding and the complaints asserted in Anthony Hoare's affidavits and in submissions made by his counsel on his behalf (J68) did not and could not constitute the prima facie case of oppression of a member of Geelong Quarries.
(iii) Anthony Hoare's complaint about Mathew Hoare taking the ten shares in Geelong Quarries (J32(c)) which was subsequently transferred half to Anthony Hoare's entity ET Investments and half to Mathew Hoare's entity H4MC Pty Ltd said to be contrary to the will of the late Peter Hoare did not amount to oppression of ET Investments as a shareholder of Geelong Quarries and in any event occurred in or prior to 2013 and could not be sued on in 2022 when it was raised for the first time.
(c) The Learned Primary Judge erroneously conflated harm to Hoare Bros. by the termination of the informal agreement with Geelong Quarries to operate the quarry with harm to ET Investments as a member of Geelong Quarries which might amount to oppressive conduct of the affairs of Geelong Quarries.
(d) The Learned Primary Judge should have found that the harm (if any) to Hoare Brosby termination of the informal agreement to operate the quarry would not and could not constitute oppression of ET Investments as a member of Geelong Quarries and should have dismissed the application for interlocutory relief.
(e) The Learned Primary Judge erred in determining (J69) that Anthony Hoare might be able to formulate a claim for oppression of ET Investments as a member of Geelong Quarries and then granting injunctive relief to enable Anthony to have the opportunity to formulate such a claim.
(f) The Learned Primary Judge should have found there was no prima facie case for oppression relief and dismissed the application.
Ground 4 - Hoare Bros agreement terminable on reasonable notice
The Learned Primary Judge erred in failing to find the relief sought by Anthony was in substance to prevent the termination of the unwritten agreement pursuant to which Hoare Bros. operated the quarry of Geelong being an unwritten agreement could have been terminated on reasonable notice. Its termination was a matter for the Board of Geelong Quarries. No prima facie case for the grant of the interlocutory relief preventing termination by the giving of reasonable notice had been made out.
(a) The Learned Primary Judge erred in refusing to admit into evidence the affidavit of Mathew Hoare sworn on 7 September 2022.
(b) Had the Learned Primary Judge admitted the affidavit of Mathew Hoare sworn on 7 September 2022 into evidence, the Learned Primary Judge would have found or ought to have found that the said affidavit put it beyond doubt that Anthony Hoare had acquiesced and participated in the transfer of the shares in Geelong Quarries to ET Investments and H4MC Pty Ltd in 2013 and consequently did not have and could not have a prima facie case for oppression relief in respect of Anthony Hoare and Kim McDonald being two of the three directors of Geelong Quarries.
(a) The Learned Primary Judge erred in holding or finding (J76) the balance of convenience favoured the granting of the interlocutory injunction.
(b) In so finding or holding the Learned Primary Judge placed weight or undue weight on the following irrelevant matters:
(i) The injunction being in place for a relatively short period of time being until the hearing and determination of the plaintiff's consolidation application (J75);
(ii) That the informal arrangement between Hoare Bros. and Geelong Quarries had been in place since in or around 2013 (J76);
(iii) There was no pressing need for the quarrying services to be put out to tender (J76);
(iv) The worst case for Mathew Hoare and Kim McDonald (and Geelong Quarries itself) is that they 'have to continue to muddle along with the present arrangements for several months' (J78).
(c) The matters referred to in part (b) hereof were not relevant to the balance of convenience or injustice or alternatively not sufficiently relevant to tip the balance of convenience or injustice in favour of granting the relief sought.
(d) The Learned Primary Judge should have found the balance of convenience or injustice favoured dismissing the application and confining Anthony Hoare and ET Investments to such remedy as they might have in damages.
Further or alternatively the Learned Primary Judge erred in not dismissing the application, inter alia, on the ground that it was commenced and prosecuted by Anthony Hoare, a director of Geelong Quarries, against the other directors of Geelong Quarries, Mathew Hoare and Kim McDonald, and that Anthony Hoare had no standing as a director to bring an oppression claim.
Further or alternatively the Learned Primary Judge erred in holding or finding a prima facie case for relief had been established and the balance of convenience or injustice favoured the granting of the injunction when the cause of action said to support the grant of the injunction, namely oppressive conduct of the affairs of Geelong Quarries, was raised in the proceeding by Anthony Hoare when no shareholders in Geelong Quarries or Geelong Quarries itself were parties to the proceeding or before the Court when the application was heard and determined.
[1] Without any disrespect, first names are used throughout this judgment in order to distinguish between individuals who share a common surname.
[2] The shareholders of GQ are ET Investments (Vic) Pty Ltd (Anthony); H4MC Pty Ltd (Mathew); and Markee Custodians Pty Ltd (Kim).
[3] Other than such agreement being in writing, there was no suggestion that such formal agreement would be on more favourable terms than the Hoare Bros Quarrying Agreement.
[4] The appropriate test referred to in Niemann v Electronic Industries Ltd [1978] VicRp 44; [1978] VR 431, 441-2 (Murphy J). See also Chhet v Khmer Buddhist Temple Association Inc [2021] VSCA 266, [47].
[5] House v The King (1936) 55 CLR 499; 55 CLR 499.
[6] The background facts, which are uncontroversial unless indicated, are taken from the reasons of the judge; Re Geelong Quarries Pty Ltd [2022] VSC 528 ('Reasons').
[7] Contentious paragraphs, footnotes to the affidavits, paragraph numbers, and paragraphs reciting matters already addressed above are omitted.
[8] The application was also directed to preventing a resolution referred to in a notice dated 9 July 2022, issued by Markee, being voted on by Mathew and Kim (Kim's Notice). Kim's Notice proposed a resolution that '[GQ] exercise its rights to a further ten (10) year term pursuant to the [Quarry Agreement]'.
[10] Ibid [52]-[53] (citations omitted).
[13] Ibid [61]-[65] (citations omitted).
[14] Ibid [69]-[74] (citations omitted).
[15] Ibid [76]-[79] (citations omitted).
[16] Order of Button J in Re Geelong Quarries Pty Ltd (Supreme Court of Victoria, S ECI 2021 03781, 8 September 2022).
[17] For convenience, the proposed grounds are referred to in our reasons as grounds.
[18] In the application for leave to appeal dated 5 October 2022, ground 3 comprises paragraphs 3, 4 and 5. We have set out the grounds as paragraphs (a)-(f).
[19] Affidavit of Anthony Hoare sworn 11 October 2021, [106]-[268] ('Anthony October Affidavit'); Affidavit of Anthony Hoare sworn 23 August 2022, [9]-[16], [32], [48].
[20] Affidavits of Kim McDonald sworn 8 December 2021 and 27 August 2022; Affidavit of Mathew Hoare sworn 26 August 2022.
[21] See [30] and [34] above. Submissions on this discrete ground were also made by Anthony (see [86(c)] of his submissions dated 29 August 2022).
[23] Ibid 82 [65] (Gummow and Hayne JJ); Reasons, [37].
[26] Section 37 was referred to by the judge (see [33] above).
[27] Anthony October Affidavit, [69].
[28] In the application for leave to appeal dated 5 October 2022, [4] refers to the Hoare Bros Quarrying Agreement as an 'onerous contract'. Other than the agreement not being in writing, no submission was made in relation to this bold and extravagant statement. The same applies to [5(c)] in relation to 'significant injustice'.
[29] It is highly relevant that the injunction was not granted until the hearing and determination of the trial, but rather until the determination of the Consolidation Application (or further order), and in respect of which an undertaking was given as part of the price of the injunction. This was, with respect, an entirely suitable balance and, without detracting from the weak but sufficient prima facie case, enables the issues to be more fully and precisely articulated when the Consolidation Application is determined. Mathew has no cause for complaint.
Hoare
Hoare [2023] VSCA 73
(1936) 55 CLR 499
(2006) 227 CLR 57