Ferocem Pty Ltd v High Tech Auto Tools Pty Ltd

Case [1991] FCA 472


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THE FEDERAL COURT OF AUSTRALIA )

NEW SOUTH WALES DISTRICT REGIST )
Ry 1 NG 633 of 1990

1

GENERAL DIVISION 1
BETWEEN:  D C E M PTY LIMITED and ANOTHER

Applicants

AND :  HIGH TECH AUTO TOOLS PTY LIMITED

Respondent

CORAM: Burchett J.
PLACE: Sydney

DATE : 25 July 1991

EX TEMPORE REASONS FOR JUDGMENT

BURCHETT .l.:

In this matter, a notice of motion has been taken out seeking an order striking out para. 7 of the statement of claim and para. 5 of the application. Paragraph 7 of the statement of claim, it was conceded in the course of argument, could be supported as alleging facts material to one way in which the claim under S. 52 of the Trade Practices Act might be sought to be made out at the hearing. For that reason, it is unnecessary to say any more about para. 7, and I will not strike it out. Paragraph 5 of the application raises more difficulty; however, it seems to me that a court should not strike out a prayer for relief unless a strong case is made

out.

mneral Steel Industries Inc v. Commissioner for Railwavs

jN.S.W.1 (1964) 112 CLR 125, of course, requires a strong case

to be made out for a grant of any relief of the nature of striking out, and I do not mean to suggest that any different test applies to an application from the test which applies to a statement of claim. However, in applying the test, it seems to me a court would be more reluctant to strike out a prayer, if there is some arguable footing propounded upon which the applicant would wish to go to trial and seek the relief specified. I cannot see any significant, or really, any, prejudice to the respondent in permitting the paragraph to remain in the application.

Furthermore, in this particular case it does appear to me that, despite what was put by counsel for the respondents, there is an arguable case to support the jurisdiction of the court to grant relief of the kind sought in para. 5 of the application. In part, the argument depends upon the meaning of S. 129(b) of the Patents Act 1990, a section which, at any

mixing of tenses. If only for that reason, I would be rate at first reading, appears to involve a very confusing

reluctant to accede to a strike out application which depends upon giving a reading to the section, when any reading, either favourable or unfavourable to the applicants' case, requires the court to cut in some manner the Gordian knot of a quite inappropriate syntax.

I think eneral. Steel Industries Inc requires, in this case, that I take the view that there is an arguable case in favour of para. 5, and the applicants should not be shut out from raising that argument. For that reason, the motion will be dismissed with costs.

I certify that this and the preceding two (2) pages are a true copy of the Reasons for Judgment herein of his Honour Mr Justice Burchett.

Associate:  -%%W& -

c/

Date: 25 July 1991

Details
AGLC
Ferocem Pty Ltd v High Tech Auto Tools Pty Ltd [1991] FCA 472
Case
[1991] FCA 472
Decision Date

CaseChat Overview and Summary

The Federal Court of Australia dealt with a motion brought by Ferocem Pty Ltd against High Tech Auto Tools Pty Ltd. The applicants sought an order to strike out specific paragraphs from the statement of claim and application. Paragraph 7 of the statement of claim, which could potentially support the applicants' claim under section 52 of the Trade Practices Act, was conceded to be material and was thus allowed to remain. However, paragraph 5 of the application posed more significant issues. The court held that a strong case must be made to justify striking out a prayer for relief, as per the precedent set by Mineral Steel Industries Inc v. Commissioner for Railways (N.S.W.). The judge found that there was an arguable case to support the jurisdiction of the court to grant the relief sought in paragraph 5, and therefore, the motion to strike it out was dismissed.

The legal issues before the court centered on the proper interpretation of section 129(b) of the Patents Act 1990, which was deemed to involve confusing syntax. The court acknowledged that any interpretation of this section, whether favorable or unfavorable to the applicants, would require the court to resolve the ambiguity. Given the arguable case presented, the judge found it inappropriate to strike out the prayer for relief. Consequently, the motion to strike out paragraph 5 was dismissed, and costs were awarded to the applicants.

Orders

Orders of the court

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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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