Brinan Pty Ltd (in liq) v VACC Insurance Co Ltd

Case [1980] FCA 199


Applicants

1.

2.

t a k e

s u c h

s t e p s

6 s

a r e

n e c e s s a r y

t c J

ensv:c-

t h a t

e x e c u t i o n

u p o n

j u c l g m e v l t s

i n

Cn1:nt.y

Ccdrt t ;

P r o c e e d i n g s

NOS.

~ 9 3 2 6 3 3 of

1373

L ~ r > ? s5039G?

of

1 9 8 0

a r e

n o t

f u r t h e r

p u z s u c ~ d o r

c o n t i n u e d

p e n d l n g

f u r t h e r

o r d e r

by

thls

Cour t .

2 .

To

p r e s e r v e

t h e

s t a t u s

quo

d u r i n q

a

r e a s o n a b l e

t i m e

f o r

t h e

p e r s o n a l

a p p l i c a n t s

t o

p r o v l c i c .

5 ~ c h

s e c u r i t y

I

o r d e r

t h a t

s e c o n d - n a : , ~ e d

t h e

r e s p o n d e n t

m a i n t a i n

i ts

c x i s t l n y

r e s t r a i n t

upan

e x e c u t i o n

of

t h e

s a i d

j u d g T p n t s

a s

a r e operating

!

by

a g r e e m e n t

b e t w e e n

t h e

p a r t l e s

i n

t h e

p;.rluZ

immedia t e ly

p reced ing

t he

mak ing

of

t h i s oLc7rr

u n t i l

t h e

e x p i r a t i o n

of

f o u r t e e n

d z y s

t h c r c f - r o x .

3 .

L i b e r t y

is

r e s e r v e d

t o

e a c h

p p r t y

t o

a p p l y .

IN

T H E FEDERAL COURT

__ OF

A U S T R A L I A

#

V I C T O R I A N

D I S T R I C r

R E G I S T R Y

1

VG

N o .

1 1 2 01

1 9 8 0

)

_-

G E N E R A L

D I V I S I O N

--

l

I n the matter

of

t h e T r a d e P r a c t i c e s

.

-

-

A c t 1S74

__

R e s p o n d e n t s

C o r a m :

Smithers J.

2 December

1 9 6 0

-

REASONS

FOR

JUDCMENP

In proceedlt lgs VG

No.

1 1 2 of

1980 i n this

C o u r ’ c t h e

app l i can t s s e e k r e l i e f

by

way

of,

( a )

damages

p u r s d a n t p u r s u a n i -

t o

s.82

of

t h e T r a d p -

P l a c t l c e s

- -.

A c t 1 9 7 4

__

( the A c t ) ;

2.

( b )

r e s c i s s ~ o n

of

a

l e a s e in

w h l c h

t h e

a p p l i c a n t

company

1 s

lessee and

the

Respondent

Bayswater

Vl

l

lage

P

ty

.

L td .

1 s

t h e

lessor;

(c )

a

d e c l a r a t i o n

t h a t

a n

i n d e m n i t y

e n t e r e d

I n t o

b e t w e e n

t h e

p e r s o n a l

a p p l i c a n t s

a n d

B a y s w a t e r

V i l l a g e

P t y .

L t d .

1 s

n o t

? n f o r c e a b l e

a g a i n s t

t h e

p e r s o n a l

a p p l i c a n t s ;

i d ]

f u l t h r r

or

c t h e r

r e l i e f .

By

n o t i c e

o f

m o t i o n

d a t e d

2 4

September

1980

second

and

t h i r d

a p p l i c a n t s ,

( t h e

p e r s o n a l

a p p l i c a n t s )

seek

or8ers: -

I, % I.

That

the

secondnamed

Respondent

p roceed

no

-

-

f u r t h e r

w i t n

Coun ty

Cour

ac t ions

t

No'd

5932633

of 1979,

S503903

of

1980

3nd

S526484

of 1980

against

t h e

s e c o n d n a m e d

A p p l

] c a n t

a n d

t h e

t h l r d n a m e d

A p p l l c a n t

c l a l m i n g

p u r s u a n t

t o

t h e

i n d e m n . t y

l e f e r r e d

t o

i n

P a r a g r a p h

12 of

t h e

s t a t e m e n t

of

c l a i m

h e r e i n

pendlng

t h e

h f a r l n g

a n d d e t e r n i n a t l o n o f

t h i s

a p p l l c a t l o n .

--

2. That the secondnamed Responden: t ake such

s t e p s

a s

a r e

n e c e s s a r y

t o

p r p v e n t

e x e c u t i o n

o

f

w a r r a n t s

i s s u e d

u n d e r

d e f a u l t

j u c : g n e n t s

o b t a l n e d

i n

C o u n t y

C o u r t

p r o c e e d i n g s

N o ' d

~932633

of

1979

and

S503903

of

198C

a g 2 i n s t

t h e

s e c o n d n a m e d

A p p l i c a n t

a n d h e a r i n g

t h e

t h i r d n a m e d

A p p l i c a n t

p e n d i n g

t h e

a n t

d e t e r m l n a t l o n

of

t h i s a p p l i c a t i o n . "

I t

a p p e a r s

t h a t o n

8

December

1977

t h e f i r s t named

a p p l i c a n t

entered

i n t o

a

l e a s c

b e t w e e n

l t s e l f

a s

lessee

and

t h e

respondent .

Bayswdter

Vi

l

lage

P ty .

L

td

(Bayswater )

.

C J €

shop

7 111 t he

Bayswa

te

r

V i l l age

Shopp

ing

Cen t re

f o r b

term

of

three

3.

yea r s

f rom

1 5

December

1957

f o r

a

r e n t a l

w h l c h

I n

t h e

f i r s t

two

y e a r s wzs

f i x e d

a t

$453.33

per

month,

t h e shop to

be

used

as

a

r e t a l l

s h o e

s t o r e .

By

a

d e e d

d a t e d

8

Deceml.-.r

1977 tI!e

second

and

t h l rd

named

a p p l i c a n t s

a g r e e d

t o

i n d e m n i f y

=;;c

second

nanlcd respondent

r e s p o n d e n t

a g a l n s t

a n y

loss

o r

damzge

+>hick

thc

secor id

n imed

might

suf fe r

o r

Incur

a s a

r e s u l t

o f

t t ,c

f a i l u r e

o f

t h e

f l r s t

named

a p p l i c a n t

t o

p e r f o r m

2nd

obse rve

any

c€ t h e

t c l m s ,

c o n d i t i o n s

or

c o v e n a n t s

c o n t a l n c d

i i?

t h e

s a i d

i n d e n t u r e .

The

f l r s t

named

a p p l l c a n t

t o o k

possesslorl

of

t h e shop

and

remained

i n

p o s s e s s i o n

a t

l e a s t

t i n t 1 1

the

beginning of 1960 .

I t became

unable

to pay I t s d e b t s

a n d

w e n t

i n t o

l j q u j d a t i o n

i n

May

1980.

Ear ly

i n

1 9 b 0

Bayswd'cer

took

a c t i o n

i n

t h e

County

Court

a t

M e l b o u r n e

a g a i n s t

t h e

two

p e r s o n a l

a p p l i c a n t s

u a d e r

t h e

i n d e m n i t y

r e f e r r e d

t o

dboVC.

J u d g m e n t s

i n

d e f a u l t

of

d e f e n c e

were

e n t e r e d .

T h r

a p p l i c a n t s

f l r s t

became

aware

of

t h l s a t about

t h e

end

of

March

19RO.

I n

A p r i l

1 9 8 0

p r o c e e d j n g s

were

commenced

t o s e t tt.t

-judgments a s i d e

b u t

a f t e r

n e q o t i a t i o n s

between

t h e

s o i i c l t c j r c

f o r

t h e

p a r t i e s

t h e s e

were

a l l o w e d

t o

l a p s e

a n d

p r o c e s s

of

e x e c u t i o n

by

Eayswater

is

a t

p r e s e n t

in

t r a l n .

T h e

two

judqments

a re

f o r

sums

w h i c h i s pending

l n c l u d l n g

c o s t s

t o t a l

$3668.

A

t h l r d

C o u n t y

C o u r t

a c t i o n

i n whlch

the

sum

c l a i m e d

a g a i n s t

t h e

p e r s o n d l

a p p l l c a r r t s

1c

L C S , P \ - L . ~

of

t h e

i n d e m n i t y

is

$2231.36 .

On

10

S e p k m b e r

1 9 E O

t h e

a p p l ~ c a n t s

commench?

b t B t

4 .

p r o c e e d l n g e

I n

t h i s

C o u r t .

T h e cl-ain f o r

r e l i f r

1s

based

upon

a l l e g a t l o n s

t h a t

t h e

l e a s e

and

the

i ndemnl t :

wrc'rrr

e n t c r t - d

I n t o

a s

t h e

r e s u l t

of

u n t r u e

r e p r e s e n t a t l o n s

c o n s t l t u t l n g

m i s l e a d i n g

or

d e c e p t i v e

c o n d u c t

e n g a g e d

i n by

o r

o n

b e h a l f

of

B a y s w a t e r

a n d

t h e

t h i r d

r e s p o n d e n t

i n

c c n t r a v e n t i o n

c f

t h e

p r o v i s i o n s

of

s.52

o f

t h e

Act,

or

f a l s e

r e p r t s r e n t a t i o n s

C h a t

c e r t a l n

s e r v i c e s

w e r e

o f

a

p a r t i c u ! a r

s t a n d a r d

a n d

o t h e r w i s e

c o n s L i t u t i n g

f a l s e

a n d

m i s l e a d i n g

s t a t c n c n t s

made

i n

c o n t r a v e n t l o n

o f

s.53 o f

t h e

Act,

o r

f a l s e

a n d

misleading

s t a t e m e n t s

s a d e

i n

c o n t r a v e n t i o n

of

s.53A

of

t l ~ e

Act.

It

is

u n n e c e s s a r y

t o d e a l

w i t h

t h e merits

o r

t hese

a l j e g a t i o n s

f u r t h e r

t h a n

t o

s a y

t h a t

t h e y

a r e

s u f f l c l e n t l y

s u p p o r t e d

t o

j u s t i f y

a n

o r d e r

p r o v i d i n g

c h e

r c l 1 e f

claimed

I n

t h e

N o t i c e

M o t i o n

o f

t h e

t o

e x t e n t

s t a t e d

h e r e u n d e r

i f

o t h e r w i s e

i t wogld

he

p r o p e r

t o g r a n t

such

r e l i e f .

Mr.

Cas ton

appea red

for

Bayswater

and

t h e

t h i r d

r e s p o n d e n t .

He

contended

tha t

the

o rc7e r s

sough t

shou ld

not

be

g r a n t e d ,

~n

c h e

f i r s t

i n s t a n c e

b e c a u s e

t n e r e

1 s

no

j u r i s d i c t i o n

or

power

i n

t h e

C o u r t

t o

make

t h e m .

Hc

a l s o

c o n t e n d e d

t h a t

i f

t h e r e

b e

j u r i s d i c t l o n

or

power

t h e

C o u r t

s h o u l d

r e f r a ? n

f r o m

so

do ing .

Re

s u b m i t t e d

t h a t

t o

d 3

so

would

be

i n

c o n ' f l i c t

w i t h

t h n t

c o m i t y

w h i c h

ex is t s

bctlveen

C o u r t s .

I n

s u p p o r t

of

t h i s

h e

s u b m i t t e d

a l s o

t h a t

t h l s

C o u r t

s h o u l d ,

a t

l e a s t ,

d e l a y

maki!-.>

s u c h

nrhers

u n t i l

t h e

a p p l l c a n t s

h a d

s o u G h t ,

i n

t h e

C o u n t y

C o u r t

a

s t e y

o f

. .

5.

e x e c u t l o n .

I n

r e s p e c t

of

h i s c o n t c n t l o n

a s

t o

t h e

j u r i s c : i c t i o n

or power o f

t h e

C o u r t

h e

r e l i e d

upon

t h e

d e c i s i o n

of

t h e

F u l l

Cour t

of

this

C o u r t i n

Thomson

__

P u b i i c a t i o n s ( A u s t r a l i a ) P t y .

__

--

L t d .

v .

T r a d e P r a c t l c e s

-.

Commission

&

Ors

( 1 9 7 9 )

A . T . P . R .

4 0 - 1 3 3 .

I n

t h a t -

c a s e

r e l i e f

h a v i n g

b e e n

sought

by

t h e

T r a d e

P r a c t i c e s

Commisslon

a g a i n s t

v a r i o u s

r c s p o n d e n t s

11:

r e s p e c t

c f

a l l eged

c o n t r a v e n t i o n s

of

t h e

Act

by

way

of

f i n a l

r e l i e f ,

i n j u n c c i o n b

w e r e

g r a n t e d

b y

c o n s e n t

r e s t r a i n i n g

c e r t a i n

d e f e n d a n t s

f r o m

p a r t i c u l a r

c o n d u c t .

Some

i t e m s

t h a t

o f

conduc t weLe

of

a

k i n d

t h a t

i f

e n g a g e d

i n

by

a

par ty

wou ld

c o n s t i t u t e

a

c o n t r a v e n t i o n

o f

t h e

provisions

of

t h e

Act .

Other I tems c h a r a c t e r .

of

t h e

c o n d u c t

r e s t r a l n c d

w e r e

n o t

of

t h h t

I t was

s a i d

by

t h e

C o u r t

z t p.

1 0 4 4 3 : -

" I n

ou

v i e w ,

t h e

c l e a r

i n f e r e n c e

t o

b e

d r a w n

f r o m

t h c

p r o v i s i o n s

of

s . 8 0

o f

t h e

A c t

1s

t h a z

t h e

power

of

t h e

C o u r t

t o

g r a n t

f i n a l

i n ~ u n c t ~ v e

r e l i e f

i n

r e s p e c t

o f

a n a c t u a l

o r

t h r e a t e n e d

b r e a c h

of

t h e

p r o v i s i o n s

of

P t .

I V

of

t h e Act

was

i n t e n d e d

by

t h e P a r l l d n c n t

t o

b e

r e s t r i c t e d

t o

t h e

J o i n i n g

o f

c o n 3 b c t

of

t h e

k l n d

r e f e r r e d

t o

i n

s e c .

8 0 ( 1 )

o f

t h e

Act

and

n o t t o enconpassed

? - < t e n d

t o

t h e

e n g o i n i n g

o f

c o n d u c t

n o t

by

the

k l n d s

o f

c o n d u c t

s p e c l f l e d

i n

t h a t

s u b s e c t i o n .

T h i s

c o n c l u s ~ o n

d o e s

n o t

mean

t h z t a

f i n a l

i n j u n c t l o n

u n d e r

s e c .

80

m u s t

r e f e r

t o

k i n d s

o f

c o n d u c t

a s

d l s t l n c t

from

s p e c l f i c

c o n d u c t .

What

~t

mean=

1 s

t h a t

the

c o n d u c t

e n j o i n e d ,

p r e f e r a b l y

by

, > r e c i s e

description, mus t come

w l t h l n or,c o r more

of

t h e

k l n d s

of

conduc t

wh

lch

s ec .

C C ( 1 )

I T o s P ~ i o n s .

Nor

does

t h l s

c o n c l u s i o n

n e c e s s a r i l y

a ~ p l y

t o

t h e

power

g r a n t

t o

I n t e r i r ? .

~ n ] u : ~ c t i u n s

f o r

w h i c h

s p e c i f i c

p r o v i s i o n

I S made

i n SPC.

9 0 ( 2 )

o f

t h e

Act

and

111

r e s p e c t

o f

w h l c h

p a r t i c u l a r

c o n s i d c r a t l o n s

may

a p p l y

( s e e

V l c t a 1 - 1 a n

Eog

__ -

- __

- -

Marketing

Board

v .

P a r k w o o d

E g g s

P t y .

L t d .

- --

~ ,---

_.

(1978) A . T . P . R .

129 a t p.

2 4 0 ) .

T h e

p r e s e n t

a p p l i c a t ~ o n

is

based

upon

e .80(2)

ar,d

S . 23

of

t h e Act.

I t was

s a i d

o f

S.

23

by

t h e Cour t

i n

Thomson Publicat3.ons

--

( A u s t r a l i a )

P t y .

L t d . v.

T r a ? c

P r d c t i c e s

-

Commlssion

&

O K S .

( s u p r a ) a t p.

18442:-

" I t is

p l a i n

t h a t

t h e

p r o v i s i o n s

of

sec.

3 2 ,

2 2

and

23

of

t h e

F e d e r a l C o u r t

of

? , u s t r a l i a Act

--

were

del

ibera te ly- f ram. .a - - f jy th~

CommonwealtTi

P a r l i a m e n t

i n

w l d e

a n d

g e n e r a l

terms.

I t

would

be

i n c o n s l s t e n t

w l t h

t h c

c l e a r

l e g l c l a t l v c

i n t e n t

a p p e a r i n g

f r o m

t h e m

t o

c o n s t r u e

thorn

n a r r o w l y

u n d u l y

o r

t o

r e s t r i c t

t he

w i d e

a s s o c i a t e 8

j u r i s d i c t i o n

a n d

g e n e r a l

p o w e r s

which

they

were p l a i n l y

i n t e n d & t o

c o n f e r .

T h e

C o u r t ' s

o r i g i n a l

J u r i s d i c t i o n

i n

a n y

p a r t i c u l a r

m a t t e r

m u s t

however

be

d e f l n e d

p r i m a r l

ly

by

r e f e r e n c e

t o

t h e

p r o v i s ~ o n s

of

t h e

p a r t i c u l a r

Act

of

t h e

P a r l l a m e n t

w h l c h

c o n t a i n s

t h e

r e l e v a n t

p r i m a r y

g r a n t

of

] u r i s d i c t l c n .

I n

t h e

p r e s e n t

c a s e ,

t h e

r e l e v s n t

s u e c l f ~ c

q r a n t

of

o r ~ g i n a l

j u r i s d i c t i o n

is

t o

be

found

i n

t h e

provisions of s .80 of t h e Act."

B u t

t h e

r e l i e f

c l a l m e d

i n

t h i s

m o t i o n

1s

l l o t

f i n a l

r e l l e f .

i f

i t

were,

no

d o u b t

i t

c o u l d

b e

g r a n t e d

o n l y

i f

i t

were

w i t h i n

t h e

limits

imposed

expres s ly

OK

m p l l c l d l y

b y

t h e

A c t

I n

r e s p e c t

of

t h e

klnd

of

l e l i e f

whlch

i s

a u t h o r i s e d

t h e r e b y .

B u t s.23

would

seem

t o be

a

p r o v l s i o n

p a r t i c u l a r l y

a p t

t o

c l o t h e

t h e

C o u r t

w i t h

t h o s e

p o w e r s

a n c i l l a r y

t o

~ t s

j u r i s d i c t i o n

w h i c h

a r e

a p p c o p r l a t e

a n d

n e c e s s a r y

t o

e n a b l e

i t

t o act j u r i s d i c t l o n

e f f e c t i v e l y

I n

r e l a t l o n

t o

m a t t e r s

I n

w h i c h

i t

n a s

t o

f a c i l i t a t e

t h e

d e t e r m i n a t i o n

s o

f a r

a s

p o s s i b l e

of

a l l

m a t t e r s

1 n

c o n t r o v e r s y

be:*e-en

t h e

p a r t i e s

(see

S. 2 2 ) .

. .

l .

I t

was

t h e

v i e w

of Toohey J.

cxprcssed 111 -

S t .

J u s t l n s P r o p e r t i e s

P t y .

L t d .

&

Ors.

v .

R u l e H o l d j n q s

P t v .

L t d .

- -

-

( 1 9 8 0 )

A . T . P . R .

40-146

t h a t

i t

w a s

n o t

r i g h t

t o

b a y

t h a t

because

t h e

a p p l l c a n t s

w e r e

s e e k i n g

r e l i e f

u n d e r

the

T r a d e

Pract1ce.s

.___

act

any power

t o q r a n t

a n o r d e r r e r t r a i n i n g

a

p a r t y

from

con t1nu i r .g

p roceed ings

i n

a

S t a t e Suprenie

Cour t

ixtween

t h e same

p a r t l c s

a s t h o s e

b e f o r e

t h e

F e d e r a l

Court

p e n d i n g

t h e

c o n c l u s i o n

of

t h o s e

p r o c e e d l n g s

m u s t

b e

f o d n , l

i n

the

T r z d e

--

-

P r a c t i c e s

Act.

I n

t h a t

c a s e

h i s

Honour

r e f r a l l l e d ,

011

t h e

m e r l t s ,

f r o m

e x e r c i s i n g

t h e

power

b u t

d i d

c o n s i d e r

t h e

q u e s t i o n

of.

t h e ex ls tence c f

t h e

power

a t some l e n g t h .

He

d l d

n o t

d i s m l s s

t h e

v i e w

t h a t

t h e

p o w e r

m i g h t

p o s s l b l y

l e s i d e

I n

t h e

i n h e r e n t

j u r j s d l c t l o n

of

t h e

C o u r t .

B u t

w ~ t h o u t

s t a t l n q

a

c o n c l u d e d

v l e w

o

n

t h a t

p o i n t

h e

found

It g r a n t e d

by

s t a k u t c I n

t h e terms of s.19 and s.23 o f

t h e

F e d e r a l

C o u r t

o f

A u s C r e l i a

-

__

Act.

-

His Honol-r 's view

was

s t a t ed

a f t e r

c o n s i d e r a t i o o

of

Thomson

P u b l i c a t i o n s

(Australia)

P t y .

L t d .

v.

T r a d c

P r a c t i c c s

--

Commission & Ors.

( s u p r a ) .

He

d i d

n o t

c o n s i d e r

t h a t

k h a t

was

s a i d

I n

t h a t

case

was

i n c o m p a t i b l e

w l t h

t h e

v i e w

h e

a d o p t e d .

1:

would

r e s p e c t f u l l y

e x p r e s s

a g r e e m e n t

I n

t h l s .

I n

t h l s

c a s e

t h e

m a t t e r s

i n

c o n t r o v e t s y

b e t w e e n

t h e

p a r t l e s

d l r e c t l y

c o n c e r n

t h e

q u e s t i o n

w n e t i l e l

a n d

t o

w h a t

e x t e n t

t h e

p e r s o n a l

a p p l i c a n t s

may

be

en t i t l e s

t o

r e l i e f

f r o m

1 , a b l l l t y

t o

B a y s w a t e r

unde r

th;!

indcrnnl ty

cjf

8

Deccmher

1 9 7 7

and

whe

the

r

and

t o

wha

ex t en t

t

i t

msy

be

en+- i t l -d

t o

ddmlqes

8.

I n

r e s p e c t

o f

t h e

a l l e g e d

c o n t r a v e n c l o n s

o f

s . 5 2

of

t h e

A

c

t

.

I t

i s

a p p a r e n t

t h a t

t h l s

r e l i e f

may

take

t l le

form

of

a

judam,nt

f o r damages.

I f

a

case

for

damages

hc

s u c c e s s f u l

t h e

award

would,

I n

a l l

l l k e l i h o o d

be

measured

i n

p a r t a t l e a s t

by

t h e

s u m s

a l r e a d y

p a i d

by

t h e

a p p l i c a n t s

'io

the

r e s p o n d e n t s

I n

r e s p e c t

o f

r e n t

c l a i i n e d

t o

b e

d u c

unde r

t h e

l e a s e .

I f

t h e

sums

f o r

w h l c h

~ u d g m e n t

h a s

a l r e a d y

k c e n

e n t e r e d

in

the

County

C o u r t .

p r o c e e d l n g s

m e n t i o n e d

a r e

now

r e c o v c r c d

f r o m

t h e

p e r s o n a l

a p p l l c a n t s

t h e

a m o u n t

t h e r e o f

would

a l m o s t

c c r t a l p l y

be

Included

i n the

damages

t o

be

r ecove red .

I t

1s

c l e a r

t h e r e f o r e

t h a t

t h c

u l t l m a t e

r l g h t s

o f

t h e p a r t i e s p r o c e e d i n g s

i n r e s p e c t

of

t h e

s u m s

t h e

s u b j e c t

of

t h e

c u r r e n t

by

way

of

e x e c u t i o n of

t1.e

County

Court

Juugroents

will

be

de te rmlncd

i n

t h e

p r o c e e d i n g s

I n

t h i s

C o u r t .

It

is

f o r

t h i s

r e a s o n

t h a t

t h e

c u r r e n t

a p p l i c a t i o n

is

one

fo r

an

o r d e r

" i n

r e l a t l o n

t o

a

m a t t e r

i n

k ~ j c h

t h i s

C o u r t

h a s

j u r l s d l c t l o n " .

I t is c3ntended

fo r t h e

a p p l l c a n t s

t h a t

lt would noL-

be

j u s t or

r e a s o n a b l e ,

t h a t

a t

t h l s s t a g e ,

t h e y

should

now

be

1

c a l l e d upon

t o pay

to

BaySWater

the

sums of money which o r t h e

e q u i v a l e n t

of

which

Bayswat2r

may

Flave

to pay t o them I n

accordance

w i t h

t h e

d e t e r m i n a t i o n

o f

t h i s

Court .

They

SUDpOrt

t h i s

c o n t e n t i o n

by

e v i d e n c e

w h i c h

e s t : b l i s l - , e s

r e a s o c ~ a b l e

g r o u n d

f o r

c o n c l u d l n g

t h a c

t h e y

h a v e

r e a s o n a b l e

p i o s p e c t s

of

o b t a l n i n g

a

d e t e r m i n a t i o n

t o

t h a t

e f f e c t .

...

- .

Although

.)f

c o u r s e

n o t

c o n c c d i n g

t h e

v a l l c l l t y

of

any

aspect

o f

t h i s

e v l d e n c e

or

it..

e f f e c t i v e n e s s

i n

r e l a t l o n

t o

the

i s s u e

I n d i s p u t e ,

Xr.

Cas ton

d

id

no

t

con tend

t l l a t

t h e

view

t n a t

f o r

c u r r e n t

p u r p o s e s

t h e

e v i d e n c e

d o e s

r i) lse

issues

whici)

I f

u l t i m a t e l y

e s t a b l l s h e d

m l g h t

j u s t i f y

r e l i e f

i n

scm(

mat-erial

d e g r e e

m i g h t

c o t

b e

v a l i d .

T h i s

d i d

n o t

a f f e c t

h,<,

i n s l s t e n c c

t h a t on

t h ~ s

m o t i o n

t h e

p e r s c n a l

a p p l i c a n t s

s h o u l d

f a l l ,

T h l s

C o u r t

h a s

c o n s i s t e n t l y

a p p l l e d

p r i n c i p l e . ;

r e f l e c t i n g

i t s

r e c o g n l t i o n

o

f

w h a t

is

c o n v e n i e n t l y

r e f e r r e d

t o

as coml ty i n t h i s case it would

be tween

Cour ts .

Mr.

C a s t o n

s a i d

i f

t h e C o u r t

d l d

s o

n o t

i n t e r f e r e

w i t h

t h e

p r o c e s s e s

o f

th?:

County

Court

of V i c t o r i a .

I t is t o he observed

however,

thsl-

t o

r e q u i r e

BaySWdter

t o cease

f rom

execu t ion

i n

r e l a t l o n

t o

i ts

judgment

is

n o t

t o

i n t e r f e r e

w i t h

t h e

p r o c e s s e s

o f

t h e

C o u n t y

C o u r t

b u t

m e r e l y

t o

r e s t r a i n

a

p a r t y

f r o m

c x c r c i z i n g

c e r t a i n

o f

Its

r l g h t s .

S u c h

a

p r o c e d u r e

is

i n personam.

I t

l e a v e s

t h e

judgment

untouched

and

1eavs:s

thc

proccss

o f

e x e c u t i o n

w h e r e ,

~n

a n y

e v e n t ,

a t

a l l

tlmes,

lt

h a s

b c c n ,

n a m e l y ,

s u b j e c t

t o

t h e

c o n t r o l

of

t h e

j u d g m e n t

c r e d l t o r .

I t

cou ld

well- b e ,

i n

c e r t a i n

c i r c u m s t a o c c s ,

t h ; t

c o n s i d e r a t i o n s

o f

t h e

c o m i t y

b e t w e e n

C o u r - c s

c o u l d

l n d u c e

t h l s

C o u r t

t o

r e f r a i n

f r o m

a c t i o n

u n t i l

a n

a p p l i c a t i o n

f o r

I n s t a n c e ,

f o r

a

s t a y

cf

e x e c u t i o n ,

w e r e

made

t o

the

Cour t

10.

5

whose

judgmen

t is i n

p r o c e s s

o

f

e x e c L

i t i o n .

B u t

I n

t h i s

c a s ' - ,

w h e r e

t h e

u l t i , n a t e

r j g h t s

of

t h e

p a r t i e s

wlll

a l m o s t

c e r t a l l l l y

be

decided

by

r e f e r e n c e

t o

t h e

p r o v i s l o n s

o f

t h e

Act

j n

r e l a t l o n

t o

c o n d u c t

f o r

w h i c h

the

C o u n t y

C o u r t

d o e s

n o t

hn:ve

j u r i s d i c t i o n

u n d s r

t h . ? t

Act,

t o

g r a n t

r e l l e f ,

I

c o n s i d e r

t h a t

t h e

b u r d e n

o f

a s s e s s ~ n g t h e j u s t i c e o f

t h e

s i t u a t i o n

s h o u l d

Le

b o r n e

b

y

t h i s

C o u r t

a s

i t s

r e s p o n s i b i l i t y .

Thcre is a case t o

b e

made

a g a l n s c

t h e

p e r s o n a l

a p p l i c a n t s

on

t h e

g r o u n d

o

f

d e l a y

i n

s e e k i n g

r e l i e f

e i t h e r

i n

t h l s

C o u r t

o r

t he

Cour

.

ty

Cour t .

And

t h a t

h a s

t o b e

t a k e n

i n t o

a c c o u n t

I n

$ e c l d i n g

w h e t h e r

t h e

r e l i e f

c u r r e c t l y

s o u g h t

shou18

b e

g r a n t d .

However

t h e

s i t u a t l o n

is

not

one

, . rhere

0::

p r i n c i p l e s

o f

e q u i t y

t h e

p e r s o n a l

a p p l i c a n t s '

r i g h t s

w o u l d

b..

l o s t

by

de l ay .

And

w h d t

is

s o u g h t

is

mere ly

in te r im

rcl lc ;

cn1.y

i n a

p ~ a c t l c a l

s i t u a t i o r !

w h e r e

t h e r e

is

g r a v e

r i s k

o f

i n j u s t l c e

i f

I t be

Ro

g ran ted .

t

T h e

s t r e n g t h

o f

t h r

e v i d c n p s

a t p r e s e n t

b e f o r e

t h e

Cour t

i s

p a r t i c u l a r l y

i m F o r t a n t .

F l n a l l y ,

it

was

contended

on

beha l f

o f

Bayswatcr

t h a t 1t

dou ld

no

t

be

~ u s t

or

r e a s o n a b l e

t h a t I t b c

d e p t i v e d

of

t h e

f r u i t of

Its

judgment

mere ly

on

the

g round

t h a t

t h e

a p p l j c a n r s

h a v e

shown

a

p o s s i b i l i t y

o f

o b t a l n l n g r e l l e f

o n

t h e

ground

of

c o n t r a v e n t i o n s

o

f

t h e

A c t .

T h e r e

i s s t r e n g t 5

j?

t h e

competing

c o n t e n t i o n s

i n

r e s p e c t

o f

t h e

p r a c t l c a l i t i e s

conce rn lng

the

d e s t i n a t i o n o f

t h e

money

i n q u e s t i o n

w h l l e

t h l s

a c t l o n

is

on

f o o t .

Each

p o l n t s

t o

t h e

p o s s l b l e

detriment

which

i t may

s u f f e r

i n

t h e

e v e n t

t h a t -

t h e

o C h c r

is

u n a b l e

t G

meet

i t s l i a b i l i t i e s a s

in

d u e

c o c r s e

t h e y

m y

t u r n

o u t

t o

be

a s

d e t e r m i n e d

by

t h i s

C o u r t .

T o my

mind

the

i n t e r e s t s

nf

j u s t i c e

and

convenience

may

be

s e r v e d

by

t h e

o r d e r

s e t

o u t

below which i n t e r e s t s o f e a c h p a r t y .

will

so

f a r a s pOS5lb le

t ake

accoun i

o f

t h n

For

t h l s

p u r p o s e

I

o r d e r

t h a t

o n

t h e

c p p l

i c a n t . ;

g i v i n g

s e c u r l t y

t o

t h e

s a t i s f a c t i o n

o f

t h e

R e g i s t r a r

of

t h l s

C o u r t

I n

t h e

sum

of

$ 3 6 6 & s u c h

s u m

t o

awai t

and

be

d e a l t w l t h

I n

a c c o r d a n c e

w ~ t h

t h e

o r d e r

o f

this

Cour t

in

thls

a c t i o n ,

B a y s w a t e r

s h a l l

t a k e

s t e p s

t o

e n s u r e

t h a t

t h e

c11rre1”C

p roceed ings

by

way

o f

e x e c u t i o n

o f

t h e

C o m t y

C o u r s

3ud<;mt\I:t

b e r e i n b c i o r e

m e n t i o n e d

a r e

n o t

f u r t h e r

pursued

o r

cor.tlnLlea

p e n d i n g

f u r t h e r

o r d e r

by

t h i s

C o u r t .

To

p r e s e r v e

t h e

s t a t u s

quo

d u r i n g

a

r e a s o n a b l e

t i m e

f o r

t h e

p e r s o n a l

applicants

’, o

p r o v i d e

s u c h

s e c u r i t y

1

o r d e r

t h a t

B 3 . 3 w a t F . r

m a i n t a i n

i t - s

e x l s t l n g

r e s t r a l n t

upon

execution

of

t h e

s a l d

judqmt.llr:s

L L

are

opeca t ing

by

agreement

be tween

t h e

p a r t i e s

i n

t h e

p e r i o d

immedla t e ly

p recc3 ing

t he

mak ing

of

t h J s

o r d e r

u n t l l

t h e

e x p i r a t l o n

o

f

f o u r t - e e n

d a y s

therefrorp,

and

I

q r a n t

l l b c l - t y

t o

a p p l y .

Details
AGLC
Brinan Pty Ltd (in liq) v VACC Insurance Co Ltd [1980] FCA 199
Case
[1980] FCA 199
Decision Date

CaseChat Overview and Summary

The case of Brinan Pty Ltd (in liq) v VACC Insurance Co Ltd involved an application by the liquidators of Brinan Pty Ltd for an order to restrain the respondent, VACC Insurance Co Ltd, from executing County Court judgments against the applicants. The applicants sought relief based on alleged contraventions of the Trade Practices Act 1974. The key issues before the court were whether it had jurisdiction to grant the relief sought and whether it should exercise its discretion to do so. The court found that it had jurisdiction under section 23 of the Federal Court of Australia Act to grant the relief, which was ancillary to its jurisdiction. It also found that considerations of equity and convenience between courts favoured granting the order. The court therefore ordered that the respondent refrain from executing the County Court judgments for 14 days, to preserve the status quo. Liberty was reserved for each party to apply.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.