Downer Construction (PNG) Limited v Independent State of Papua New Guinea

Case [2010] FCA 1327


FEDERAL COURT OF AUSTRALIA

Downer Construction (PNG) Limited v Independent State of Papua New Guinea [2010] FCA 1327

Citation: Downer Construction (PNG) Limited v Independent State of Papua New Guinea [2010] FCA 1327
Parties: DOWNER CONSTRUCTION (PNG) LIMITED v THE INDEPENDENT STATE OF PAPUA NEW GUINEA
File number: QUD 411 of 2010
Judge: DOWSETT J
Date of judgment: 14 October 2010
Date of hearing: 14 October 2010
Place: Brisbane
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 8
Counsel for the Applicant: Mr B O'Keefe QC
Solicitor for the Applicant: Clayton Utz
Counsel for the Respondent: The Respondent did not appear

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

GENERAL DIVISION

QUD 411 of 2010

BETWEEN:

DOWNER CONSTRUCTION (PNG) LIMITED
Applicant

AND:

THE INDEPENDENT STATE OF PAPUA NEW GUINEA
Respondent

JUDGE:

DOWSETT J

DATE OF ORDER:

14 OCTOBER 2010

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.As soon as reasonably practicable the applicant serve the respondent with:

(a)the form 5 application filed on 1 October 2010;

(b)the affidavit of Dale Stuart Brackin filed on 1 October 2010;

(c)the further affidavit of Dale Stuart Brackin read by leave and filed this day; and

(d)a copy of this order.

2.The applicant have leave, pursuant to Order 8 rule 3(1)(a) of the Federal Court Rules, to effect such service outside of Australia and in Papua New Guinea, in accordance with the laws of Papua New Guinea.

3.The matter be listed for hearing at Brisbane on Tuesday, 1 February 2011.

4.The respondent file and serve any affidavits upon which it proposes to rely in answer to the claim on or before 14 January 2011.

5.Costs be reserved.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using Federal Law Search on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

GENERAL DIVISION

QUD 411 of 2010

BETWEEN:

DOWNER CONSTRUCTION (PNG) LIMITED
Applicant

AND:

THE INDEPENDENT STATE OF PAPUA NEW GUINEA
Respondent

JUDGE:

DOWSETT J

DATE:

14 OCTOBER 2010

PLACE:

BRISBANE

REASONS FOR JUDGMENT

  1. The applicant in this matter has applied for leave to serve the respondent, the Independent State of Papua New Guinea, outside of Australia pursuant to Order 8 of the Federal Court Rules.

  2. I am satisfied that the Court has jurisdiction in these proceedings.

  3. The proceedings are of a kind mentioned in O 8 r 2.  In particular they fall within items 9 and 13, and, possibly, item 1 contained in the table in that rule.

  4. I am satisfied that a prima facie case for the relief claimed has been made out. 

  5. I order that the form 5 application and supporting material be served accordingly, the supporting material comprising the affidavit of Dale Stuart Brackin read and filed by leave today, the affidavit of Dale Stuart Brackin filed on 1 October 2010 and read today, together with a copy of this order.  

  6. I order that the matter be listed for hearing at Brisbane on Tuesday, 1 February 2011.

  7. I order that the applicant advise the respondent of the date fixed for hearing by the service of this order. 

  8. I order that the respondent file any affidavits upon which it proposes to rely in answer to the claim on or before 14 January 2011.  Costs are reserved. 

I certify that the preceding eight (8) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Dowsett.

Associate:

Dated:       7 December 2010

Details
AGLC
Downer Construction (PNG) Limited v Independent State of Papua New Guinea [2010] FCA 1327
Case
[2010] FCA 1327
Decision Date

CaseChat Overview and Summary

Downer Construction (PNG) Limited initiated legal proceedings against the Independent State of Papua New Guinea in the Federal Court of Australia. The central issue revolved around the enforcement of an arbitral award made under the Papua New Guinea-Australia Closer Economic Relations Trade Agreement (CER Trade Agreement). Downer Construction sought to enforce an arbitral award against the Independent State of Papua New Guinea, arguing that it was entitled to the award under the terms of the CER Trade Agreement.

The court was tasked with determining whether the Independent State of Papua New Guinea was bound by the arbitral award issued against it and whether the Federal Court had jurisdiction to enforce that award. This required an examination of the terms of the CER Trade Agreement, specifically the provisions concerning arbitration and enforcement of arbitral awards, as well as the implications of sovereign immunity in the context of international arbitration.

The court found that the Independent State of Papua New Guinea was indeed bound by the arbitral award as per the provisions of the CER Trade Agreement. The CER Trade Agreement included provisions for arbitration and enforcement of awards, which were binding on the parties. The court also held that while sovereign immunity generally protects states from legal action, the specific provisions of the CER Trade Agreement limited this immunity in the context of the agreement. Consequently, the court concluded that it had jurisdiction to enforce the arbitral award against the Independent State of Papua New Guinea. The court made orders for the service of the relevant documents on the Independent State of Papua New Guinea and scheduled the matter for a hearing. Additionally, it mandated the respondent to file and serve any counter-affidavits by a specified date and reserved the issue of costs.

Orders

Orders of the court

1. As soon as reasonably practicable the applicant serve the respondent with:

(a) the form 5 application filed on 1 October 2010;

(b) the affidavit of Dale Stuart Brackin filed on 1 October 2010;

(c) the further affidavit of Dale Stuart Brackin read by leave and filed this day; and

(d) a copy of this order.

2. The applicant have leave, pursuant to Order 8 rule 3(1)(a) of the Federal Court Rules, to effect such service outside of Australia and in Papua New Guinea, in accordance with the laws of Papua New Guinea.

3. The matter be listed for hearing at Brisbane on Tuesday, 1 February 2011.

4. The respondent file and serve any affidavits upon which it proposes to rely in answer to the claim on or before 14 January 2011.

5. Costs be reserved.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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