711 Hogben Pty Ltd v Tadros

711 Hogben Pty Ltd sued Tadros in a dispute regarding an expert determination made under a Deed of Agreement for Lease. The nature of the dispute centred around whether the expert determination was final and binding unless it was subject to manifest error. The defendants, in their cross claim, sought to enforce the determination and obtain further relief. The Federal Court of Australia was tasked with deciding several key legal issues. The first was whether the determination was made in accordance with the Deed at a different time to whether manifest error. The second was whether one party to the Deed could refer a dispute for determination without the agreement of the other. The third was whether there was a breach of procedural fairness in making the determination. The fourth was whether the cross claim raised issues that had to be determined by the expert.

The court held that the plaintiff, in essence, was re-litigating a matter already determined by the expert, which was final and binding unless subject to manifest error. The court also held that there was no requirement for both parties to agree to refer a dispute to an expert for determination. Furthermore, the court found no breach of procedural fairness in the making of the determination and that the cross claim raised issues that had to be determined by the expert. Consequently, the plaintiff’s summons was dismissed, and the cross claim was not stayed. This outcome reinforces the principle that expert determinations are binding unless there is manifest error and that procedural fairness is not breached if both parties are given an opportunity to be heard before the expert.