Essential Energy v Rose

Case [2020] FCA 722


FEDERAL COURT OF AUSTRALIA

Essential Energy v Rose [2020] FCA 722

Appeal from: Application for leave to appeal from: Rose v Essential Energy [2020] FCA 124
File number: NSD 220 of 2020
Judge: LEE J
Date of judgment: 22 May 2020
Catchwords:

HIGH COURT AND FEDERAL COURT – Federal jurisdiction – issue in relation to jurisdiction of Federal Court in preliminary discovery matters – consideration of jurisdiction of Federal Court generally

PRACTICE AND PROCEDURE – application for leave to appeal – whether reasonable prospects of success – whether trial judge’s decision attended by sufficient doubt – whether substantial injustice would be suffered if appeal refused – application dismissed

PRACTICE AND PROCEDURE – r 7.23 of the Federal Court Rules 2011 (Cth) – application for preliminary discovery – discovery from prospective respondent – whether reasonable belief that the prospective applicant may have the right to obtain relief – whether sufficient information to commence proceedings

CONSUMER LAW – s 60 of the Australian Consumer Law – meaning of services – whether an electricity connection contract includes the requirement to provide a safe electricity network generally – whether the particular spending of fees affects the scope of the service provided to particular customers – electricity infrastructure – electricity network – Tathra bushfire

Legislation:

Australian Consumer Law s 60

Federal Court of Australia Act 1976 (Cth) ss 31A, 37N, 43

Judiciary Act 1903 (Cth) s 39B(1A)(c)

Federal Court Rules 2011 (Cth) r 7.23

Cases cited:

Apache Northwest Pty Limited v Newcrest Mining Limited [2009] FCAFC 39; (2009) 182 FCR 124

Australian Securities and Investments Commission v Edensor Nominees Pty Limited [2001] HCA 1; (2001) 204 CLR 559

Burgundy Royale Investments Pty Ltd v Westpac Banking Corporation (1987) 18 FCR 212

Decor Corporation Pty Ltd v Dart Industries Inc [1991] FCAFC 844; (1991) 33 FCR 397

Fencott v Muller (1983) 152 CLR 570

Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52

Hooper v Kirella Pty Ltd [1999] FCA 1584; (1999) 96 FCR 1

LFDB v SM (No 2) [2017] FCAFC 207

Melbourne City Investments Pty Ltd v Treasury Wine Estates Ltd [2017] FCAFC 98; (2017) 252 FCR 1

Nationwide News Proprietary Limited v Rush [2018] FCAFC 78

Oliver v Nine Network Australia Pty Ltd [2019] FCA 583

Pfizer Ireland Pharmaceuticals v Samsung Bioepis AU Pty Ltd [2017] FCAFC 193; (2017) 257 FCR 62

Rana v Google Inc [2017] FCAFC 156; (2017) 254 FCR 1

Rawson Finances Pty Ltd v Deputy Commissioner of Taxation [2010] FCAFC 139; (2010) 81 ATR 36

Re Wakim; Ex parte McNally [1999] HCA 27; (1999) 198 CLR 511

Rose v Essential Energy [2020] FCA 124

Allsop, J L B, “Federal Jurisdiction and the Jurisdiction of the Federal Court of Australia in 2002” (2002) 23 Aust Bar Rev 29

Date of hearing: 22 May 2020
Registry: New South Wales
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Regulator and Consumer Protection
Category: Catchwords

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AGLC
Essential Energy v Rose [2020] FCA 722
Case
[2020] FCA 722
Decision Date

CaseChat Overview and Summary

Essential Energy, the appellant, brought an action against Rose, the respondent, in the Federal Court of Australia seeking preliminary discovery to determine the scope of the electricity connection contract between the parties. The case concerned the adequacy of the electricity network provided by Essential Energy, particularly in the context of the Tathra bushfire, and whether the contract included a requirement to provide a safe electricity network generally. The Federal Court dismissed the application for preliminary discovery, finding that the appellant did not have a reasonable belief that it may have the right to obtain relief and that there was not sufficient information to commence proceedings. Essential Energy appealed to the High Court, seeking leave to appeal the decision of the Federal Court.

The primary legal issue before the High Court was whether the Federal Court had jurisdiction to grant the preliminary discovery application. The Court was also required to consider the criteria for granting leave to appeal, including whether there were reasonable prospects of success, whether the trial judge's decision was attended by sufficient doubt, and whether a substantial injustice would be suffered if the appeal was refused. The Court considered whether the Federal Court had jurisdiction to hear the matter under section 39B of the Judiciary Act 1903 (Cth) and whether the application for preliminary discovery was appropriate in the circumstances.

The High Court held that the Federal Court did not have jurisdiction to grant the application for preliminary discovery. The Court found that there was no reasonable belief that the appellant had the right to obtain relief and that the information provided was insufficient to commence proceedings. The Court also held that the criteria for granting leave to appeal were not satisfied, as there were not reasonable prospects of success and the trial judge's decision was not attended by sufficient doubt. The Court found that no substantial injustice would be suffered if the appeal was refused, and therefore dismissed the application for leave to appeal with costs.

The Court made an order dismissing the application for leave to appeal with costs, in accordance with Rule 39.32 of the Federal Court Rules 2011 (Cth). The order is final and binding, and the appeal is dismissed.

Orders

Orders of the court

1. The application for leave to appeal be dismissed with costs.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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