Galilee Solicitors Pty Ltd v Ethan Group Pty Ltd - [2021] NSWSC 1067

Supreme Court

New South Wales

Amendment notes

Medium Neutral Citation: Galilee Solicitors Pty Ltd v Ethan Group Pty Ltd [2021] NSWSC 1067
Hearing dates: 17 & 18 August 2021
Date of orders: 25 August 2021
Decision date: 25 August 2021
Jurisdiction: Equity - Commercial List
Before: Williams J
Decision:
Contempt motion dismissed with costs.

Catchwords:
CONTEMPT OF COURT – alleged breach of court order – whether civil contempt – construction of order – conduct alleged did not constitute breach of order

Legislation Cited:
Competition and Consumer Act 2010 (Cth), Sch 2 (‘Australian Consumer Law’), s 243

Cases Cited:
Anderson v Hassett [2007] NSWSC 1310
Athens v Randwick City Council (2005) 64 NSWLR 58; [2005] NSWCA 317
Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199
Australian Competition and Consumer Commission v Hercules Iron Pty Ltd [2008] FCA 1182
Bellerive Homes Pty Ltd v FW Projects Pty Ltd [2019] NSWSC 193
Baller Industries Pty Ltd v Mero Mero Leasing Pty Ltd [2019] NSWSC 1067
Bookarelli Pty Ltd v Katanga Developments Pty Ltd [2017] NSWCA 69
Commissioner of Taxation v Sandini Pty Ltd (2018) 263 FCR 240; [2018] FCAFC 44
Commonwealth Bank of Australia v Salvato (No. 4) [2013] NSWSC 321
In the matter of Jimmy’s Recipe Pty Limited [2020] NSWSC 93
Katter v Melhem (2015) 90 NSWLR 194
Kirkpatrick v Kotis (2004) 62 NSWLR 567
Lade & Co Pty Ltd v Black (2006) 2 Qd R 531; [2006] QCA 294
Metcash Trading Ltd v Bunn (No. 5) [2009] FCA 16
Microsoft Corporation v Marks (No. 1) (1996) 69 FCR 117
NHB Enterprises Pty Ltd v Corry (No. 7) [2021] NSWSC 741
Ross v Lane Cove Council (2014) 86 NSWLR 34
SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362
Universal Music Australia Pty Ltd v Sharman Networks Ltd (2006) 150 FCR 110

Category: Procedural rulings
Parties: Galilee Solicitors Pty Ltd (ACN 617 256 201)
Ethan Group Pty Ltd (ACN 099 503 456)
Representation:
Counsel:
Mr A Leopold SC and Mr A Kaufmann (Plaintiff)
Mr R Yezerski and Ms W Liu (Defendant)
Solicitors:
Galilee Solicitors (Plaintiff)
Pigott Stinson (Defendant)

File Number(s): 2020/230647
Publication restriction: N/A

Judgment

Introduction

These reasons relate to the plaintiff’s motion for the defendant to be found guilty of, and punished for, contempt of court for its alleged failure to comply with an interim order made by consent in these proceedings on 20 August 2020.
For the reasons that follow, the alleged conduct of the defendant (if proved beyond reasonable doubt) would not constitute a breach of the interim order, properly construed. Accordingly, the plaintiff’s motion is dismissed.

Nature of the proceedings

The proceedings were commenced on 7 August 2020.
Galilee Solicitors Pty Limited, an incorporated legal practice, is the plaintiff and cross-defendant (Galilee).
Ethan Group Pty Limited, a provider of information technology services, is the defendant and cross-claimant (Ethan).
The proceedings concern a dispute about fees payable by Galilee to Ethan for information technology services provided…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2021] NSWSC 1067
Decision Date: 25 August 2021

CaseChat Overview and Summary

Galilee Solicitors Pty Ltd filed an application against Ethan Group Pty Ltd, alleging that Ethan Group had breached a court order. The dispute was heard in the Supreme Court of New South Wales. The court was tasked with determining whether the conduct of Ethan Group amounted to a breach of the court order and, if so, whether it constituted civil contempt. The primary issue was the interpretation of the court order and whether the alleged conduct of Ethan Group fell within its terms.

The court examined the precise wording of the order and the conduct of Ethan Group. The order was explicit in its terms and required certain actions to be taken by the respondent. The court held that the conduct of Ethan Group did not align with the requirements of the order. The court found that the actions taken by Ethan Group did not contravene the specific terms of the order as it was clearly defined and unambiguous. The court concluded that there was no evidence to support that Ethan Group's actions constituted a breach of the order.

As a result, the court dismissed the application for contempt. The court found that the conduct of Ethan Group did not breach the terms of the court order and therefore did not constitute civil contempt. The court's decision was based on the strict interpretation of the order and the absence of any actions by Ethan Group that contravened its terms. The court emphasised that the order was clear and that the actions taken by Ethan Group were not in breach of the court's requirements.

Orders