[2020] QSC 344
General information, not legal advice.
Supreme Court of Queensland
2020-11-25
Martin J
Original judgment source is linked above.
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS - JUDGMENTS AND ORDER - AMENDING, VARYING AND SETTING ASIDE JUDGMENTS AND ORDERS - EX PARTE ORDERS AND JUDGMENTS - GENERAL PRINCIPLES - where the applicants applied, without notice, for an order to enforce two arbitral awards - where the application was brought ex parte - where the applicants argued that there were urgent and unprecedented circumstances which necessitated the application being brought ex parte, namely that there was legislation before the Parliament of Western Australia which, once passed, would appear to render nugatory any accrued rights held by the applicants - where the order was made - where the respondent applies to have the order set aside on the grounds that the application should not have been brought ex parte - whether the respondent should have been served, and if the respondent should have been served, whether the respondent has a right to have the order set aside
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS - JUDGMENTS AND ORDER - AMENDING, VARYING AND SETTING ASIDE JUDGMENTS AND ORDERS - EX PARTE ORDERS AND JUDGMENTS - PARTICULAR CASES - where, at the ex parte application, counsel submitted that it was the "usual manner of proceeding" for an application to enforce an arbitral award to be brought ex parte - where counsel submitted that the enforcement process under the Commercial Arbitration Act 2013 (Qld) was a "two-stage" process - where counsel placed reliance on certain paragraphs from cases - where those paragraphs did not support the proposition advanced - where the "two-stage" process is no longer the norm - whether there was a misstatement of the law by the applicants when bringing the application and whether the order should be set aside
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS - JUDGMENTS AND ORDER - AMENDING, VARYING AND SETTING ASIDE JUDGMENTS AND ORDERS - EX PARTE ORDERS AND JUDGMENTS - PARTICULAR CASES - where the respondent submits that the applicants did not, at the ex parte application, inform the court about: the extent of compliance with the 2014 Award; the nature and terms of the 2019 Award; the availability of the ex parte procedure; the breach of parliamentary privilege constituted by reference to statements made in the Parliament of Western Australia; and the declaratory nature of the awards - where the respondent submits that these were material facts that should have been fully disclosed - whether the applicants discharged their duties as an applicant to an ex parte application and whether, if the duties were not discharged, the order should be set aside
ARBITRATION - RECOGNITION AND ENFORCEMENT OF AWARDS - ENFORCING AWARDS - PARTICULAR CASES - where the applicants applied to enforce two arbitral awards under s 35 of the Commercial Arbitration Act 2013 (Qld) - where the awards consisted, with one minor exception, of declarations - whether the awards are capable of being enforced under s 35 of the Commercial Arbitration Act 2013 (Qld)
ARBITRATION - RECOGNITION AND ENFORCEMENT OF AWARDS - ENFORCING AWARDS - GROUNDS FOR OPPOSING - where the enforcement of an arbitral award may be refused if the recognition or enforcement of the award would be contrary to the public policy of the State - where the respondent argues that the enforcement of the 2014 Award would result in double recovery and that the enforcement application depended on an infringement of parliamentary privilege - whether the respondent has made out arguable grounds for refusing to enforce the awards
PROCEDURE - STATE AND TERRITORY COURTS: JURISDICTION, POWERS AND GENERALLY - INHERENT AND GENERAL STATUTORY POWERS - OTHER CASES AND MATTERS - where the Court made an order on 13 August 2020 to enforce two arbitral awards - where the State of Western Australia enacted the Iron Ore Processing (Mineralogy Pty Ltd) Agreement Amendment Act 2020 (WA) ("the 2020 Amendments") - where the 2020 Amendments came into operation from the first minute of 13 August 2020 - where the applicants argue that the 2020 Amendments disable the Court from adjudicating the application brought by WA to set aside the order made on 13 August 2020 because (a) the order of the Court was "extinguished" by s 11 of the 2020 Amendments, (b) if the Court were to dismiss the application by WA, that order would be "extinguished" by the 2020 Amendments, (c) the 2020 Amendments have the effect of terminating these proceedings, or (d) the 2020 Amendments prevent the applicants from making submissions about the conduct of the respondent that is adverse to its interests and the Court is prevented from admitting evidence that might be presented in an effort to defend the respondent's application - where the applicants have commenced proceedings in the High Court of Australia challenging the constitutional validity of the 2020 Amendments - where the applicants seek an adjournment of the application until the 2020 Amendments' constitutional validity is determined by the High Court of Australia - whether the application should be adjourned
Acts Interpretation Act 1954 (Qld)
Corporations Act 2001 (Cth)
Interpretation Act 1984 (WA)
Iron Ore Processing (Mineralogy Pty Ltd) Agreement Amendment Act 2020 (WA)
AED Oil Ltd v Puffin FPSO Ltd [2010] VSCA 37; (2010) 27 VR 22, cited
Aristocrat Technologies Australia Pty Ltd v Allam [2016] HCA 3; (2016) 327 ALR 595, cited
Attorney-General v Mayor of Liverpool [1835] EngR 1042; (1835) 1 My & Cr 171, (1835) 40 ER 342, applied
Brink's Mat Ltd v Elcombe [1988] 1 WLR 1350, cited
Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571, applied
Dampskibsselskabet Norden A/S v Beach Building & Civil Group Pty Ltd [2012] FCA 696; (2012) 292 ALR 161, applied
Dardana Ltd v Yukos Oil Co [2002] 2 Lloyd's Rep 326, cited
DMW v CGW [1982] HCA 73; (1982) 151 CLR 491, cited
D'Orta-Ekenaike v Victoria Legal Aid [2005] HCA 12; (2005) 223 CLR 1, cited
Eiser Infrastructure Ltd v Kingdom of Spain (2020) 142 ACSR 616, cited
Electra Air Conditioning BV v Seeley International Pty Ltd [2008] FCAFC 169, cited
Farrell v Delaney (1952) 52 St Rep NSW 236, cited
Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd [2017] NSWCA 53; (2017) 94 NSWLR 606, cited
Garrard v Email Furniture Pty Ltd (1993) 32 NSWLR 662, applied
Greig v Stramit Corporation Pty Ltd [2003] QCA 298; [2004] 2 Qd R 17, applied
Hadkinson v Hadkinson [1952] P 258,cited
Heartwood Architectural Timber and Joinery Pty Ltd v Redchip Lawyers [2009] QSC 195; [2009] 2 Qd R 499, applied
Hillig v Darkinjung Pty Ltd [2008] NSWCA 75, cited
Hoskins v Van Den-Braak (1998) 43 NSWLR 290, applied
ICM Agriculture Pty Ltd v Commonwealth [2009] HCA 51; (2009) 240 CLR 140, applied
IMC Aviation Solutions Pty Ltd v Altain Khuder LLC [2011] VSCA 248; (2011) 38 VR 303, distinguished
Indian Farmers Fertiliser Cooperative Ltd v Gutnick [2015] VSC 724; (2015) 304 FLR 199, cited
International Finance Trust Company Ltd v New South Wales Crime Commission (2009) 240 CLR 319, cited
Iqnet Pty Ltd v Schleeman [2001] WASC 236, cited
Isaacs v Robertson [1985] AC 97, applied
John v Rees [1970] Ch 345, cited
National Australia Bank Ltd v Juric [2001] VSC 375, applied
Orpen v Tarantello [2009] VSC 143, cited
Papas v Grave [2013] NSWCA 308, applied
Queensland Police Credit Union Ltd v Criminal Justice Commission [2000] 1 Qd R 626, applied
Raja v Van Hoogstraten (No 9) [2008] EWCA Civ 1444; [2009] 1 WLR 1143, cited
Re Bell Group NV (in liq) (No 2) [2017] FCA 927; (2017) 122 ACSR 418, cited
Sanders v Sanders [1967] HCA 33; (1967) 116 CLR 366, cited
Savcor Pty Ltd v Cathodic Protection International APS [2005] VSCA 213; (2005) 12 VR 639, cited
Siporex Trade SA v Comdel Commodities Ltd [1986] 2 Lloyd's Rep 428, cited
State of Western Australia v Mineralogy Pty Ltd [2020] WASC 58, cited
Stead v State Government Insurance Commission [1986] HCA 54; (1986) 161 CLR 141, cited
Taylor v Taylor [1979] HCA 38; (1979) 143 CLR 1, applied
Thomas A Edison Ltd v Bullock [1912] HCA 72; (1912) 15 CLR 679, cited
United State of America v Dunkel [1991] USCA7 185; 927 F. 2d 955 (7th Cir 1991), cited
Tridon Australia Pty Ltd v ACD Tridon Inc [2004] NSWCA 146, considered
Walter Rau Neusser Oel und Fett v Cross Pacific Trading Ltd [2005] FCA 955, cited
Williams (as liquidator of Willahra Pty Ltd (in liq)) v Kim Management Pty Ltd [2012] QSC 143; [2013] 1 Qd R 387, cited
SL Doyle QC, SJ Webster and JR Green for the applicant/respondent
DB O'Sullivan QC, E Robinson and KS Byrne for the respondent/first applicant
DF Jackson QC and MA Karan for the respondent/second applicant
J Thompson SC, Solicitor-General for Western Australia and
E Negus intervening on behalf of the Attorney-General of Western Australia
State Solicitor's Office of Western Australia for the Attorney-General of Western Australia
(a) The application to enforce was brought ex parte. Should it have been? Does WA have a right to have the order set aside?
(b) Was there a lack of full disclosure of material facts or a misstatement of the law by Mineralogy when making the application? If so, should the order be set aside?
(c) The awards consisted (with one minor exception) of declarations. Were the awards capable of being enforced under s 35 of the CA Act?
(d) What effect, if any, do the 2020 Amendments have on these proceedings?
"1. Declare that the August 2012 Submission was a proposal submitted pursuant to clause 6 of the State Agreement with which the Minister was required to deal under clause 7(1) of the Agreement.
"1. DECLARE the Applicants' right to recover damages was not heard and determined in the Award of 20 May 2014.
"The provisions of this Act, except sections 8, 9, 17H, 17I, 17J, 35 and 36, apply only if the place of arbitration is in Queensland."
(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 Acts Interpretation Act 1954, section 14A for the purposes of interpreting this Act."
"35 Recognition and enforcement (cf Model Law Art 35)
(1) An arbitral award, irrespective of the State or Territory in which it was made, is to be recognised in this State as binding and, on application in writing to the Court, is to be enforced subject to the provisions of this section and section 36.
(2) The party relying on an award or applying for its enforcement must supply the original award or a copy of the original award.
(3) If the award is not made in English, the Court may request the party to supply a translation of it into English.
So much of Art 35(2) of the Model Law as provides for the translation of an award that is not in the official language of the enforcing State has been modified.
(1) Recognition or enforcement of an arbitral award, irrespective of the State or Territory in which it was made, may be refused only -
(a) at the request of the party against whom it is invoked, if that party furnishes to the Court proof that -
(i) a party to the arbitration agreement was under some incapacity, or the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication in it, under the law of the State or Territory where the award was made; or
(ii) the party against whom the award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present the party's case; or
(iii) the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognised and enforced; or
(iv) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or, failing such agreement, was not in accordance with the law of the State or Territory where the arbitration took place; or
(v) the award has not yet become binding on the parties or has been set aside or suspended by a court of the State or Territory in which, or under the law of which, that award was made; or
(i) the subject-matter of the dispute is not capable of settlement by arbitration under the law of this State; or
(ii) the recognition or enforcement of the award would be contrary to the public policy of this State.
(2) If an application for setting aside or suspension of an award has been made to a court referred to in subsection (1)(a)(v), the Court may, if it considers it proper, adjourn its decision and may also, on the application of the party claiming recognition or enforcement of the award, order the party to provide appropriate security."
(b) alternatively, that the operation of the order of 13 August 2020 be stayed pending the determination of the second application.
(a) WA should have been served - the application should not have been made on an ex parte basis,
(b) there was not a full disclosure of material facts and, in seeking ex parte relief, material misstatements of the law were made, and
(c) there was no, and there remains no, proper occasion to enforce either of the awards because:
(i) the awards, apart from one matter concerning costs, were for declaratory relief and had either been complied with or were incapable of being "enforced", and
(ii) the 2019 Award was not an "award" within the meaning of s 35 of the CA Act.
Should the application have been made on notice?
(1) An application must be filed and then served on each respondent at least 3 business days before the day set for hearing the application.
Under the Acts Interpretation Act 1954, section 38(1)(a), the service day and the hearing day are excluded in the reckoning of time.
(2) However, the time limit in subrule (1) does not apply if -
(a) these rules, an Act or another law permit the application to be heard and decided without being served; or
(b) the applicant proposes in the application that it be decided without a hearing; or
(c) another time is provided for under these rules or an Act.
(3) If an application is not served as required by subrule (1), the court must not hear and decide the application unless the court considers it just to hear and decide the application on the day set for hearing and 1 of the following applies -
(a) the court is satisfied delay caused by giving notice of the application would cause irreparable or serious mischief to the applicant or another person;
(b) the court is satisfied the respondents to the application will suffer no significant prejudice if it hears and decides the application on the day set for hearing;
(c) the respondents to the application consent to the court hearing and deciding the application on the day set for hearing.
The court may decide subrule (3) has been satisfied if the application is a cross application by a respondent to another application and it is convenient for the applications to be heard together.
(4) For an application not served as required by subrule (1) -
(a) the court may make an order on an undertaking given by the applicant and acceptable to the court; and
(b) a person affected by the order may apply to the court for it to be set aside."
(1) An application under the Commercial Arbitration Act 2013, section 35 to enforce an award must be in the approved form.
(a) the documents mentioned in the Commercial Arbitration Act 2013, section 35; and
(i) the extent to which the award has not been complied with, at the date the application is made; and
(ii) the usual or last known place of business or residence of the person against whom it is sought to enforce the award or, if the person is a company, the last known registered office of the company."
"To the respondents: TAKE NOTICE that the applicant [name of applicant], being a party to an arbitration agreement, applies for an order under section 35 of the Commercial Arbitration Act 2013 to enforce an award and for the other relief set out in this application.
This application will be heard by the Court at place
on: date of hearing at 10 am or as the case may be
If you wish to oppose this application or to argue that any different order should be made, you must appear before the Court in person or by your lawyer and you shall be heard. If you do not appear at the hearing the orders sought may be made without further notice to you. In addition you may before the day for hearing file a Notice of Address for Service in this Registry. The Notice should be in Form 8 to the Uniform Civil Procedure Rules. You must serve a copy of it at the applicant's address for service shown in this application as soon as possible.
(a) the extent to which the award has not been complied with at the date the application is made; and
(b) the usual or last-known place of residence or business of the person against whom it is sought to enforce the award or, if the person is a company, the last-known registered office of the company.
If you intend on the hearing to rely on any affidavits they must be filed and served at the applicant's address for service prior to the hearing date.
[Select one of these three options and delete the others]
*It is intended to serve this application on the respondent/*all respondents.
*It is intended to serve this application on the following respondents:
[insert name of each respondent on whom application is to be served].
*It is not intended to serve this application on *the respondent/*any respondent."
"[9] At about 8.00 am AEST on Wednesday 12 August 2020 I accessed online and read each of:
(a) sections 35 and 36 of the Commercial Arbitration Act 2013 (Qld); and
(b) rule 365U of the Uniform Civil Procedure Rules 1999 (Qld); and
(c) form 137Y originating application to enforce award (Commercial Arbitration Act) (version 1 approved on 5 February 2019) (the approved form).
[10] When I read the approved form, I noticed that one of the options in the section headed 'Service on the Respondent' provided that 'It is not intended to serve this application on *the respondent/*any respondent'.
[11] Shortly after reading the documents set out in paragraph 9, I instructed Alexander Law and briefed Mr Kris Byrne of Counsel:
(a) to make an urgent application to the Supreme Court of Queensland for an order enforcing each of the 2014 Award and the 2019 Award pursuant to section 35 of the Commercial Arbitration Act 2013 (Qld) in accordance with rule 365U of the Uniform Civil Procedure Rules 1999 (Qld); and
(b) to bring such application on the basis that it was not intended to serve the application on the Respondent."
(b) it was common for applications for orders recognising and enforcing awards to be made ex parte,
(d) there was no basis to proceed on an inter partes hearing,
(e) there were urgent, unprecedented circumstances justifying proceeding on an ex parte basis, and
(f) the orthodox approach was to proceed in two stages with the first being ex parte.
"... the time limit in subrule (1) does not apply if -
(a) these rules, an Act or another law permit the application to be heard and decided without being served;"
(b) "it is ... common for applications for orders recognising and enforcing awards to be made ex parte",
(c) this was the approach which had "been accepted in Australia",
(d) "there is no need to proceed on an inter partes hearing", and
(e) there were "urgent, unprecedented circumstances" which justified proceeding ex parte.
"[132] Fifthly, the Act does not set out the procedures to be followed by this court in relation to applications for enforcement of foreign arbitral awards. Those procedures are set out in O 9 of the Supreme Court (Miscellaneous Civil Proceedings) Rules 2008 ('Rules') and Practice Note No 2 of 2010, 'Arbitration Business' ('practice note'). The Rules and the practice note provide for a two-stage process. Stage one usually involves the making of an ex parte application for leave to enforce the award. If leave is granted, an order is made which gives effect to the award as a judgment of this court and stays the enforcement of the award for the purpose of giving the award debtor an opportunity to apply to the court to set aside the order. Stage two occurs only if an application is made to set aside the order. If such an application is made, stage two involves an inter partes hearing of the application. The two-stage model has been adopted in other Convention countries."
"... the issue is one of harmonisation, your Honour. That because there is model legislation, what applies in one jurisdiction ought to apply in the other. And if your Honour goes down to paragraph 135 [of IMC Aviation]. ... And finally, if your Honour goes to paragraph 141 ... the first sentence, regarding the enforcement clause function."
"[90] I pause to note that it is not the practice of this court to make an enforcement order under s 8 of the Act on the return date of the originating application ex parte. It is the usual practice of this court in such matters to require an inter partes hearing. The enforcement hearing would only proceed ex parte if the award debtor failed to appear at that hearing. In point of principle, however, that difference in practice does not affect the question presently under discussion." (emphasis added)
"The Model Law does not lay down procedural details of recognition and enforcement since there is no practical need for unifying them, and since they form an intrinsic part of the national procedural law and practice. The Model Law merely sets certain conditions for obtaining enforcement: application in writing, accompanied by the award and the arbitration agreement (article 35(2))."[12]
"It is a fundamental principle of natural justice, applicable to all courts whether superior or inferior, that a person against whom a claim or charge is made must be given a reasonable opportunity of appearing and presenting his case. If this principle be not observed, the person affected is entitled, ex debito justitiae, to have any determination which affects him set aside; and a court which finds that it has been led to purport to determine a matter in which there has been a failure to observe the principle has inherent jurisdiction to set its determination aside.... In such a case there has been no valid trial at all. The setting aside of the invalid determination lays the ghost of the simulacrum of a trial, and leaves the field open for a real trial."[16] (citations omitted, emphasis added)
"Once it is shown that there is a right to procedural fairness in the form of an opportunity of being heard in a proceeding, a person aggrieved is ordinarily entitled to relief against adverse consequences of being denied that right without having to establish in detail how the opportunity would have been made use of. The position may, in some instances, be different where it is shown that the opportunity, even if granted, would in fact or law have been of no avail. In practice, however, cases of that kind are, for the reasons referred to by Megarry J. in John v. Rees [1970] Ch. 345, 402, necessarily rare."[22] (emphasis added)
"[40] ... Authorities such as Cameron v. Cole and Craig v. Kanssen, referred to above, establish that failure to provide an opportunity to be heard gives the party denied that right an entitlement, ex debito justitiae, to have the order made set aside."[23]
"[109] ... The denial of Stramit's fundamental right to a reasonable opportunity to be heard on the liquidators' application was what entitled it to an order ex debito justitiae from another judge of this court, granting Stramit relief against that denial of natural justice."[24] (citations omitted)
"[135] The principle embodied in the expression audi alteram partem has been part of the common law at least since the 16th century. In Cameron v. Cole Rich J. expressed it in English: 'a person against whom a claim or charge is made must be given a reasonable opportunity of appearing and presenting his case'. It has been traced to Seneca's Medea. In Brown v. DML Resources Pty Ltd (No. 2) Austin J. said:
'The importance of the audi alteram partem rule of natural justice, especially in curial proceedings, can hardly be overstated. In Cameron v Cole Rich J described it as a 'fundamental principle', and in Commissioner of Police v Tanos, Dixon CJ and Webb J referred to it as a 'deep-rooted principle of the law'.'
I respectfully agree. The principle does not apply to every decision by every public authority in every circumstance; but 'its application to proceedings in the established courts is a matter of course.'
[136] What is the consequence if an order is made in breach of the principle? If the judicial body in question is a superior court, the breach does not make the order a nullity. It does however entitle the party denied natural justice to have the order set aside. That party is so entitled ex debito justitiae, that is, as of right, not as a matter of discretion or subject to terms. Like most other rights, that right may be waived, and it would not be enforced if to do so would constitute an abuse of process of court."[25] (citations omitted, emphasis added)
Judges, pigs and truffles - the duties of an advocate on an ex parte application
"Unless a party moving a court to make orders in the absence of parties having an interest to oppose them making is obliged to make proper disclosure of all relevant materials, hearings will be needlessly multiplied and prolonged. Courts should not be asked to make orders in the absence of opposing interests on material that is or should be known to be deficient."[28]
"... it is the duty of a party asking for an injunction ex parte to bring under the notice of the Court all facts material to the determination of his right to that injunction, and it is no excuse for him to say that he was not aware of the importance. Uberrima fides is required, and the party inducing the Court to act in the absence of the other party, fails in his obligation unless he supplies the place of the absent party to the extent of bringing forward all of the material facts which that party would presumably have brought forward in his defence to that application. Unless that is done, the implied condition upon which the Court acts informing its judgment is unfulfilled and the order so obtained must almost invariably fall."[30] (emphasis added)
"[38] In an ex parte hearing, it is the obligation of the party seeking orders, through its representatives, to take the place of the absent party to the extent of bringing forward all the material facts which that party would have brought forward in defence of the application ... That does not mean stating matters obliquely, including documents in voluminous exhibits, and merely not mis-stating the position**. It means squarely putting the other side's case, if there is one, by coherently expressing the known facts in a way such that the Court can understand, in the urgent context in which the application is brought forward, what might be said against the making of the orders**. It is not for the Court to search out, organise and bring together what can be said on the respondents' behalf. That is the responsibility of the applicant, through its representatives." (citation omitted, emphasis added)
(a) An applicant must make a full and fair disclosure of all the material facts.
(b) The material facts are those which the judge needs to know in dealing with the application. (Materiality is determined by the court, not the applicant or its legal advisors.)
(c) The applicant must make proper enquiries about the facts before making the application. The duty extends to any additional facts the applicant would have known if it had made such enquiries.
(d) How far an applicant must go in making these enquiries will depend upon all the circumstances of the case. This will include the probable effect of the order on the defendant and the degree of urgency.
(e) The applicant must identify the crucial points for and against the application and not rely on general statements and the mere exhibiting of numerous documents.
(f) The applicant must identify any likely defences - factual or legal - and make the judge aware of them.
(g) The applicant must inform the court of the legal authorities that bear one way or the other upon the matters under debate. That duty applies irrespective of whether or not the particular authority assists the party who is aware of it.
"[78] The extent of disclosure that is required in making an ex parte application must depend to some extent on the circumstances in which the application has been made. Where an urgent application is made to prevent imminent conduct, the opportunity for close examination of the relevant legal principles may be limited. While the urgency would not excuse a failure to disclose material facts and circumstances, it may well be a justification for no more than a very limited statement of the legal principles upon which the application is based."
"[10] If a fact known to the party, or a relevant principle of law, was not put before the court when it should have been, the reason why that occurred will usually not be relevant. As explained by Gleeson CJ in Nudd v The Queen [2006] HCA 9; 80 ALJR 614 at [8], in relation to a criminal appeal:
'It is natural for a person aggrieved by the outcome of a criminal trial to seek to assign blame, but where a miscarriage of justice is said to arise from a failure of process, it is the process itself that is judged, not the individual performance of the participants in the process. If a trial judge fails to instruct a jury on an essential point of law, the explanation might be that the judge was inexperienced, or ill, or absent-minded, or temporarily distracted by other concerns. That would be irrelevant. It is the acts and omissions of the judge that matter; not personal failings or problems that might account for those acts or omissions. Similarly, where the conduct of counsel, as a participant in the trial process, is said to give rise to, or to be involved in, a miscarriage of justice, ordinarily it was what was done or omitted that is of significance, rather than why that occurred.'" (emphasis added)
The consequences of a failure to fulfil the duty to disclose - the order is discharged
"It is, in my opinion, important that the extent of the duty ("a most serious responsibility") imposed upon a person applying to a court ex parte be not qualified and that failure to observe that duty be properly sanctioned. ... The court should set aside an order or certificate obtained in breach of the rule and should do so with costs. If the party be entitled to the relief following full disclosure, the relief may be obtained upon a subsequent and a proper application."[39] (emphasis added)
"[14] There remains the question of whether it is appropriate to consider making any order on the applicants' summons in advance of remitter. Were it not for the material non-disclosure in the evidence filed on behalf of Mr Allam and Tonita in support of the applications made by them ex parte on 17 December 2015 and 21 January 2016, I would consider it a sound exercise of discretion to defer all issues between the parties or putative parties for consideration of the Federal Court. That non-disclosure having been noticed, however, it cannot go unremedied.
[15] It is an elementary principle of our ordinarily adversarial system of justice that full and fair disclosure must be made by any person who seeks an order from a court ex parte, with the result that failure to make such disclosure is ordinarily sufficient to warrant discharge of such order as might be made. The principle is not confined to particular types of interlocutory orders. Its rationale lies in the importance to the administration of justice of the courts and the public being able to have confidence that an order will not be made in the absence of a person whose rights are immediately to be affected by that order unless the court making the order has first been informed by the applicant of all facts known to the applicant which that absent person could be expected to have sought to place before the court had the application for the order been contested." (citations omitted, emphasis added)
"[32] ... An ex parte order that is obtained in breach of the duty of disclosure is liable to be discharged without a hearing on the merits. The respondent is prima facie entitled to its discharge. An applicant can apply for a new order. In that regard, some courts have adopted a less severe approach than others. The rationale for the necessity to discharge an order made in the absence of full disclosure was stated in Town & Country Sport Resorts (Holdings) Pty Ltd v Partnership Pacific Ltd:
'The rationale behind the principle is clear; it is of the utmost importance in the due administration of law that the Courts and the public are able to have confidence that an ex parte order has been made only after the party obtaining it has complied with its duty to disclose all relevant facts.
The principle applies to an application to discharge or dissolve an ex parte interim injunction; the discharge of that injunction does not prevent a fresh application being heard and determined in the light of all relevant facts.'
Accordingly, an aggrieved party which applies to discharge an ex parte injunction that was obtained without full disclosure is prima facie entitled to have the injunction discharged even if the Court takes the view that the order would probably have been made even if there had been full disclosure. The merits of the applicant's case for a freezing order may be relevant to the discretion to grant a new order." (citations omitted, emphasis added)
"[21] ... The Rules of Court also give the right to a party to apply to the court for an order to set aside an order made without notice. ... If an application is made to the court pursuant to the inherent power or the rule, the court rehears the original application. ... It is a rehearing of the whole application. However, at the rehearing the judicial officer has the benefit of submissions and any material the opposing party wishes to place before the court. ...
[22] ... In my opinion, this jurisdiction is different to the situation where an order made ex parte is set aside because there was a material non-disclosure of a material matter by the party who obtained the order. The order is set aside because of some irregularity and not on the merits. When this jurisdiction is enlivened, the court's function is to determine on the material that was placed before the judicial officer at first instance, whether a party has failed to discharge the obligation which rests upon any party seeking an order ex parte, namely, making a full and fair disclosure of all matters within its knowledge and which are material, to the court. The court is not concerned whether the order should have been made on the material before the court. ..." (citations omitted, emphasis added)
"A very wholesome rule, it is true, has been established in this Court; that if a party comes for an ex parte injunction, and misrepresents the facts of the case, he shall not then be permitted to support the injunction by shewing another state of circumstances in which he would be entitled to it: because the jurisdiction of the Court in granting ex parte injunctions is obviously a very hazardous one, and one which, though often used to preserve property, may be often used to the injury of others; and it is right that a strict hand should be held over those who come with such applications." [46]
(d) the breach of parliamentary privilege constituted by reference to statements made in the Parliament of Western Australia, and
"13. As described in paragraphs [17] - [21] below, the Respondent has evinced that it is unwilling to comply with either of the 2014 Award or the 2019 Award.
The arbitral award made in a relevant arbitration and dated 20 May 2014 is of no effect and is taken never to have had any effect.
The arbitral award made in a relevant arbitration and dated 11 October 2019 is of no effect and is taken never to have had any effect.
"Declare that the August 2012 Submission was a proposal submitted pursuant to clause 6 of the State Agreement with which the Minister was required to deal under clause 7(1) of the Agreement."
"Here, the application is brought as a 'defensive process' in respect of the Amending Bill. The State seeks to depart from the status quo and to radically alter, and eradicate, the rights inhering in the Applicants by virtue of the awards."
"[91] An arbitral award is enforced through the means of the entering of a judgment on the award, either in the form of a money judgment for the amount of an award or for damages for failing to honour an award. That form of enforcement by a court is an exercise of judicial power: TCL at [32]. There is some debate in the authorities as to whether an award can be enforced by means of a court making a declaration. See Tridon Australia Pty Ltd v ACD Tridon Inc and AED Oil Ltd v Puffin FPSO Ltd [2010] VSCA 37; 27 VR 22 at [18]-[20]."
"[6] It is important to note that s 33 begins by referring to an enforcement by leave, the entry of judgment in terms of the award being consequential upon the grant of leave. The first question, then, must be what is desired by way of enforcement, and it is only when that question is asked and satisfactorily answered that there can be sensible attention to whether leave should be granted.
[11] ... Enforcement is a plain word, and means something quite different from a restatement of the effect of the award in the form of a judgment. ... There has been nothing put forward in this case to suggest any occasion for enforcement of the declarations made in the interim award. They are binding on the parties, and bind them for the balance of the arbitration and beyond that.
[12] I agree with Smart AJ's view that there is no utility in making the order sought, but for the perhaps more fundamental reason that there is just no question of enforcement yet arising. In the absence of any question of enforcement arising, it would not be appropriate to grant leave to enforce the award." (emphasis added)
"It may be that there are some who would decry the importance which the courts attach to the observance of the rules of natural justice. 'When something is obvious,' they may say, 'why force everybody to go through the tiresome waste of time involved in framing charges and giving an opportunity to be heard? The result is obvious from the start.' Those who take this view do not, I think, do themselves justice. As everybody who has anything to do with the law well knows, the path of the law is strewn with examples of open and shut cases which, somehow, were not; of unanswerable charges which, in the event, were completely answered; of inexplicable conduct which was fully explained; of fixed and unalterable determinations that, by discussion, suffered a change."[55]
"... if the Full Court is properly to be understood as saying no more than that a new trial would probably make no difference to the result, their Honours failed to apply the correct criterion. All that the appellant needed to show was that the denial of natural justice deprived him of the possibility of a successful outcome. In order to negate that possibility, it was, as we have said, necessary for the Full Court to find that a properly conducted trial could not possibly have produced a different result."[56] (emphasis added)
"That there is a requirement that the person aggrieved by failure to accord procedural justice is bound to demonstrate that successful advantage would have been taken, and in what particulars, of the opportunity, if granted, of being heard is not a matter that emerges from any of the judgments delivered in the leading decision of Ainsworth v Criminal Justice Commission..."[58]
(a) enforcement of the 2014 Award could result in double recovery, and
(b) the enforcement application depended upon an infringement of parliamentary privilege.
(a) presented an inaccurate summary of the relevant law concerning the hearing of a s 35 application including the availability of an ex parte application,
(b) presented a misleading picture of the extent of compliance by WA with, at least, the 2014 Award, and
(c) failed to adequately set out the law relating to the enforceability of declarations made in an award.
What is the effect of the 2020 Amending Act - Carthago delenda est
(b) bring the arbitrations conducted by Mr McHugh to an end,
(d) deem any proposals previously submitted to be ineffective but allow for new proposals to be submitted,
(e) provide that no current or future liability associated with disputed matters attaches to the State and no proceedings alleging liability can be brought against the State,
(f) provide that no reviews or appeals can be prosecuted in respect of disputed matters,
(g) exclude the use of freedom of information provisions or discovery for any documents connected with a disputed matter,
(h) provide that Mineralogy, IM, Mr Clive Palmer and others must indemnify, and keep indemnified, the State against any proceedings brought or connected with a disputed matter,
(i) provide that "relevant persons" (which term includes Mineralogy and IM) must indemnify, and keep indemnified, the State against certain legal costs which might arise,
(j) provide that if the Commonwealth incurs a liability to any person or a loss in connection with a disputed matter then the State can invoke the indemnities and assign the proceeds to the Commonwealth, and
(k) the protections referred to above apply similarly to "protected matters".
"25. Further provisions about liability of State
(1) This section applies to a liability of the State (whether arising before, on or after commencement) connected with a protected matter.
(2) No amount can be charged to, or paid out of, the Consolidated Account to meet the liability.
(3) No amount can be borrowed by or on behalf of the Crown in right of the State to meet the liability.
(4) No asset, right or entitlement of the State can be taken or used by any person to enforce the liability.
(5) No execution or other process in the nature of execution can be issued out of any court against the State in relation to the liability.
(6) In subsections (1), (4) and (5), references to the State include the following -
(a) a person who is a former State authority, if the liability is connected with -
(i) the person's conduct while and as a State authority; or
(ii) otherwise the person's role as a State authority;
(c) a person who is a former State agent, if the liability is connected with -
(i) the person's conduct while and as a State agent; or
(ii) otherwise the person's role as a State agent."
The 2020 Amending Act - "an unpleasant smell in the room"?
(a) the order of this Court of 13 August had been "extinguished" by virtue of s 11 of the 2020 Amendments,
(b) if this Court were, upon hearing from the parties, to decide to dismiss the application by WA, that order would itself be "extinguished" as the 2020 Amendments makes invalid any order which is not in favour of WA,
(c) if the provisions affecting orders of this Court are not engaged, the effect of the 2020 Amendments is that the proceedings themselves have been terminated so that no order is capable of being made either for or against WA's application, and
(d) Mineralogy is unable to make any submissions about the conduct of the State that are adverse to WA's interests and the Court is obliged to decline to admit, and not rely upon, evidence that might be presented in an effort to defend against the State's application.
"Any remedy, relief, order, direction, award or ruling resulting from, or any other outcome of, the proceedings is extinguished to the extent that it is against, or unfavourable to, the State or otherwise requires the State to do, or not to do, anything."
"It is not open to the person bound by the order to ignore it or to seek to treat it as null and void. The order must be obeyed until the Court discharges the order or overrules it."[71]
[1] Those proceedings were commenced after this application was heard.
[2] State of Western Australia v Mineralogy Pty Ltd [2020] WASC 58.
[5] An "Act" is an Act of the Queensland Parliament: Acts Interpretation Act 1954 s 6.
[8] [2012] FCA 696; (2012) 292 ALR 161. This decision was reversed in Dampskibsselskabet Norden A/S v Beach Building & Civil Group Pty Ltd [2013] FCA 976; (2013) 216 FCR 1 but on unrelated grounds.
[9] [2002] 2 Lloyd's Rep 326 at 331-332.
[10] Dampskibsselskabet Norden A/S v Beach Building & Civil Group Pty Ltd [2012] FCA 696; (2012) 292 ALR 161.
[11] Model Law on International Commercial Arbitration 1985, UN Doc A/40/17 (7 July 2006) annex I.
[12] Secretariat of the United Nations Commission on International Trade Law, 'Explanatory Note by the UNCITRAL Secretariat on the Model Law on International Commercial Arbitration' (Explanatory Note, UNCITRAL Secretariat).
[14] Supreme Court of Victoria, Practice Note SC CC 3, 30 January 2017.
[16] Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571 at 589. Adopted by Gibbs J in Taylor v Taylor [1979] HCA 38; (1979) 143 CLR 1 at 7.
[18] Hoskins v Van Den-Braak (1998) 43 NSWLR 290 at 293 and 298.
[19] [2000] 1 Qd R 626 at 634-635.
[20] [2003] QCA 298; [2004] 2 Qd R 17 at 25-26 [32]- [34], 28 [44], and 49 [136].
[22] Queensland Police Credit Union Ltd v Criminal Justice Commission [2000] 1 Qd R 626 at 634-635. That reasoning was followed in Greig v Stramit Corporation Pty Ltd [2003] QCA 298; [2004] 2 Qd R 17.
[23] Greig v Stramit Corporation Pty Ltd [2003] QCA 298; [2004] 2 Qd R 17 at 27.
[24] Greig v Stramit Corporation Pty Ltd [2003] QCA 298; [2004] 2 Qd R 17 at 42.
[25] Greig v Stramit Corporation Pty Ltd [2003] QCA 298; [2004] 2 Qd R 17 at 49. See, to similar effect, Isaacs v Robertson [1985] AC 97; Raja v Van Hoogstraten (No 9) [2008] EWCA Civ 1444; [2009] 1 WLR 1143.
[26] [1991] USCA7 185; 927 F. 2d 955 (7th Cir 1991) at 956.
[27] (2009) 240 CLR 319 at 376-377 [130]-[133].
[28] International Finance Trust Company Ltd v New South Wales Crime Commission (2009) 240 CLR 319 at 377 [133].
[30] Thomas A Edison Ltd v Bullock [1912] HCA 72; (1912) 15 CLR 679 at 681-682.
[32] See, eg, Savcor Pty Ltd v Cathodic Protection International APS [2005] VSCA 213; (2005) 12 VR 639; Williams (as liquidator of Willahra Pty Ltd (in liq)) v Kim Management Pty Ltd [2012] QSC 143; [2013] 1 Qd R 387
[33] [1988] 1 WLR 1350 at 1356-1357.
[35] Including Papas v Grave [2013] NSWCA 308; D'Orta-Ekenaike v Victoria Legal Aid [2005] HCA 12; (2005) 223 CLR 1; Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd [2017] NSWCA 53; (2017) 94 NSWLR 606; Orpen v Tarantello [2009] VSC 143.
[37] Savcor Pty Ltd v Cathodic Protection International APS [2005] VSCA 213; (2005) 12 VR 639 at 648 [25] per Gillard AJA.
[39] Garrard v Email Furniture Pty Ltd (1993) 32 NSWLR 662 at 678.
[44] Thomas A Edison Ltd v Bullock [1912] HCA 72; (1912) 15 CLR 679 at 682.
[46] Attorney-General v Mayor of Liverpool [1835] EngR 1042; (1835) 1 My & Cr 171 at 210-211[1835] EngR 1042; , (1835) 40 ER 342 at 355-356. Considered in Thomas A Edison Ltd v Bullock [1912] HCA 72; (1912) 15 CLR 679 at 682-683. Followed in Iqnet Pty Ltd v Schleeman [2001] WASC 236. Not everything that Pepys MR said still holds true, eg, that the "Court ... is bound to know every clause in every Act that ever passed". He did describe that, though, as "a degree of knowledge hardly to be hoped for."
[49] With whom Handley and Santow JJA agreed.
[52] AED Oil Ltd v Puffin FPSO Ltd [2010] VSCA 37; (2010) 27 VR 22 at 26 [20].
[53] [2000] 1 Qd R 626 - see the excerpt at [70] above.
[55] [1970] Ch 345 at 402.
[56] [1986] HCA 54; (1986) 161 CLR 141 at 147.
[58] [2000] 1 Qd R 626 at 634.
[62] See Iron Ore Processing (Mineralogy Pty Ltd) Agreement Amendment Act 2020 (WA) ss 12(2), 20(2).
[63] Iron Ore Processing (Mineralogy Pty Ltd) Agreement Amendment Act 2020 (WA) s 2; Interpretation Act 1984 (WA) s 21.
[64] Nick Seddon, 'The Palmer Act' Australian Public Law (Web Page, 31 August 2020) .
[65] ICM Agriculture Pty Ltd v Commonwealth [2009] HCA 51; (2009) 240 CLR 140 at 199 [141] per Hayne, Kiefel and Bell JJ.
[66] Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571 at 590, 606; Sanders v Sanders [1967] HCA 33; (1967) 116 CLR 366 at 376; DMW v CGW [1982] HCA 73; (1982) 151 CLR 491 at 505.
[67] Isaacs v Robertson [1985] AC 97.
[68] Isaacs v Robertson [1985] AC 97 at 102-3 per Lord Diplock.
[69] Hadkinson v Hadkinson [1952] P 258 at 288.
[71] National Australia Bank Ltd v Juric [2001] VSC 375 at [28]. See also Hillig v Darkinjung Pty Ltd [2008] NSWCA 75 at [33].
[72] Taylor v Taylor [1979] HCA 38; (1979) 143 CLR 1 at 16 per Gibbs CJ
[73] Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571 at 586 per Latham CJ.
Mineralogy Pty Ltd & Anor
The State of Western Australia [2020] QSC 344
(2010) 27 VR 22
(2016) 327 ALR 595
(1944) 68 CLR 571
(2012) 292 ALR 161
(1982) 151 CLR 491
(2005) 223 CLR 1
(2017) 94 NSWLR 606
(1993) 32 NSWLR 662
(1998) 43 NSWLR 290
(2009) 240 CLR 140
(2011) 38 VR 303
(2015) 304 FLR 199
(2009) 240 CLR 319
(1967) 116 CLR 366
(2005) 12 VR 639
(1986) 161 CLR 141
(1979) 143 CLR 1
(1912) 15 CLR 679
(2013) 216 FCR 1
(1992) 175 CLR 564