Glencore International AG v Selwyn Mines Ltd

In the matter of Glencore International AG v Selwyn Mines Ltd, the dispute revolves around claims by Glencore against Selwyn Mines Ltd and BankWest for breach of contract and inducing breach of contract, respectively. Glencore alleges that BankWest induced Selwyn Mines Ltd to breach a finance agreement, leading to financial loss for Glencore. The case was heard and decided by Lindgren J of the Supreme Court of Western Australia. The primary legal issues before the court were whether Glencore was entitled to preliminary discovery of documents from Selwyn Mines Ltd and four of its directors, and whether there was reasonable cause to believe that Glencore may have a right to obtain relief from these parties under specific sections of the Corporations Act.

The court examined the evidence presented by Glencore, including the affidavits of key individuals involved in the negotiations and the transaction. It considered the financial positions of Selwyn Mines Ltd and the roles of BankWest, Glencore, and the directors in the context of the agreements and alleged breaches. The court concluded that while there was reasonable cause to believe Glencore might have a right to obtain relief from certain directors for misleading or deceptive conduct, there was no such cause for relief against Selwyn Mines Ltd or two of the directors. The court also determined that the preliminary discovery sought by Glencore from Selwyn Mines Ltd and the directors was not intended to establish a claim against them but to aid in determining whether there was a claim against BankWest and the directors. Therefore, the court declined to order preliminary discovery from Selwyn Mines Ltd and two of the directors.

The court ordered the parties to attempt to agree on the form of orders, including those relating to costs, and to submit their proposed orders and written submissions to the Associate of the court by a specified date. If the parties could not agree, the court would make the orders after considering the submissions.