First Capital Partners Pty Ltd v Sylvatech Ltd

Case [2004] NSWSC 846


CITATION: First Capital Partners v Sylvatech [2004] NSWSC 846
HEARING DATE(S): 3 September 2004
JUDGMENT DATE:
3 September 2004
JURISDICTION:
Equity
JUDGMENT OF: Campbell J
DECISION: Section 131 Evidence Act 1995 privilege not confined to settlement negotiations between parties to litigation, and continues after settlement achieved. Numerous rulings.
CATCHWORDS: EVIDENCE - facts excluded from proof - section 131 Evidence Act 1995 - whether it applies only to a dispute between parties to the present litigation - whether it continues to apply once the dispute has been resolved - EVIDENCE - client legal privilege - no question of principle - PRACTICE - subpoenas and notices to produce - masking parts of documents - construction - relevance
LEGISLATION CITED: Evidence Act 1995
Evidence Act 1995 (Cth)
CASES CITED: GE Capital Corporate Finance Group Ltd v Bankers Trust Co [1995] 2 All ER 993
Glass v DeMarco [1999] FCA 482
Langford v Cleary (No 2) (1998) 8 Tas R 52
Law Society of New South Wales v Bruce (1996) 40 NSWLR 77
Lawcover Pty Limited v the Commissioner of Police for New South Wales (Supreme Court of NSW 28 November 1997, unreported)
Moran v Moran [No 3] [2000] NSWSC 151
National Employers' Mutual General Association Ltd v Waind & Hill [1978] 1 NSWLR 372
Rush & Tompkins Ltd v Greater London Council [1989] AC 1280

PARTIES :

First Capital Partners Pty Limited - Plaintiff
Sylvatech Limited - Defendant
FILE NUMBER(S): SC 3097/02
COUNSEL: S A Wells - Plaintiff
C Bavin - Defendant
SOLICITORS: Lazarus Tomko Lawyers - Plaintiff
Hunt & Hunt - Defendant

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
EQUITY LIST

CAMPBELL J

FRIDAY 3 SEPTEMBER 2004

3097/02 FIRST CAPITAL PARTNERS PTY LIMITED v SYLVATECH LIMITED

JUDGMENT – Ex Tempore (Revised 7 September 2004)

1 HIS HONOUR: This is the hearing of a Notice of Motion which has been brought by the plaintiff in these proceedings against the defendant. The proceedings are ones whereby the plaintiff claims that the defendant has an obligation to pay it money, arising from the terms of a Heads of Agreement document which was entered by the plaintiff and the defendant and other parties on 6 November 2000.

The Notice to Produce

2 The plaintiff has served on the defendant a notice to produce which requires it to produce the following documents:

          “1. All documents prepared for any meetings of the directors including meeting agendas and minutes of meetings of the Board of Directors of Sylvatech Limited (formerly known as Australian Plantation Group Limited) for the period 6 November 2000 to date in relation to:
              (a) The agreement titled “Heads of Agreement” dated on or about 6 November 2000, between inter alia Australian Plantation Group Limited, Australian Plantation Timber Limited and First Management Corporation Limited (“the November Heads of Agreement”);
              (b) negotiations with the Administrator and/or the Administrator’s solicitors of Australian Plantation Timber Limited and/or First Management Corporation Limited leading up to the Settlement Agreement dated 10 May 2002.”

The November Heads of Agreement

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First Capital Partners Pty Ltd v Sylvatech Ltd [2004] NSWSC 846
Case
[2004] NSWSC 846
Decision Date

CaseChat Overview and Summary

First Capital Partners Pty Ltd sought to enforce an agreement for the sale of shares in Sylvatech Ltd. The dispute centred on the admissibility of certain documents that had been redacted by the opposing party, Sylvatech Ltd, on the basis of client legal privilege. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was whether section 131 of the Evidence Act 1995 applied to exclude facts from proof in a situation where the dispute between the parties had been resolved. The court was also required to determine whether the application of this section continued to apply once the dispute had been resolved and whether the privilege claimed over the redacted documents was valid.

The court examined the language of section 131 of the Evidence Act 1995 and concluded that the section applied to exclude facts from proof irrespective of whether the dispute between the parties had been resolved. The court held that the privilege claimed over the redacted documents was valid and that the masking of parts of the documents was permissible under the law. The court found that the redacted information was relevant to the case and that the exclusion of the information was necessary to protect the client legal privilege. The court held that the privilege was not waived by the fact that the dispute between the parties had been resolved.

The court ordered that the redacted documents be produced in court, subject to the application of the client legal privilege. The court held that the privilege was not absolute and that the documents could be produced if the information was necessary for the fair administration of justice. The court also held that the privilege did not apply to documents that had been disclosed to third parties or that were otherwise not privileged. The court found that the redacted information was necessary for the fair administration of justice and ordered that the documents be produced in court.

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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