Connell v Rothwells Limited (In Liquidation)

The applicant, Mr Connell, sought special leave to appeal to the High Court of Australia from a decision of the Court of Appeal. The dispute concerned the stamp duty payable on a deed executed in Western Australia. The deed was assessed for stamp duty in Western Australia at over $877,000, with approximately $39,000 paid in relation to a covenant for the payment of $12 million. A copy of the deed was subsequently brought into Queensland and assessed for stamp duty at less than $5, which was also paid. The respondent, Rothwells Limited (In Liquidation), was seeking to enforce the deed in Queensland proceedings, relying on the Queensland-stamped copy, which the applicant argued represented an apparent saving of over $800,000 in unpaid stamp duty. The applicant contended that the respondent should be liable for both the Western Australian and Queensland stamp duties.

The central legal issue before the High Court was whether the rules of private international law of an Australian forum, either by indirect operation of Australia's federal nature or directly by section 118 of the Constitution, required the enforcement of the stamp duty laws of another Australian state, specifically Western Australia, where the deed was executed. The applicant argued that the Western Australian Stamp Act rendered the deed invalid, and this invalidity should be recognised in Queensland, notwithstanding the Queensland assessment. The applicant disputed the respondent's assertion that their argument was contrary to established authority, particularly cases concerning inconsistent state legislation and the displacement of forum law by the lex loci delicti.

The applicant's argument was that due to Australia's federal structure and section 118 of the Constitution, the private international law rules of each Australian forum give effect to the relevant laws of other states, unless there is an inconsistent statute of the forum. In this instance, the applicant contended that the relevant law was the Stamp Act of Western Australia, as the lex loci contractus, which affected the validity of the deed. The applicant asserted that the Western Australian legislation did not merely render the document inadmissible in evidence but made it invalid, relying on principles established in cases such as *Dent v Moore*. This invalidity, according to the applicant, should be recognised in Queensland.