Global Realty Development Corp v Dominion Wines Ltd (in liq)

In the Federal Court of Australia, Global Realty Development Corp, a foreign corporation, brought an action against Dominion Wines Ltd, a company that had been wound up, and its liquidator. The plaintiff sought to set aside a creditors' resolution that the company be wound up and to restrain the liquidator and the company from acting on that resolution. Additionally, the plaintiff sought to compel the liquidator to complete a contract for the sale of the company's property. The court had to determine whether it should set aside the originating process or decline to exercise its jurisdiction due to forum non conveniens. It also had to decide whether the proceedings should be transferred to another court that had jurisdiction.

The primary legal issue was whether the court had the jurisdiction to hear the case given the plaintiff's lack of assets and presence in Australia. The court considered whether there were compelling reasons for the case to be heard in another jurisdiction and if there was a serious question to be tried. It also evaluated the balance of convenience, including the plaintiff's undertakings to the court regarding damages and the payment of money under certain conditions. The court noted that the plaintiff had offered to pay an inadequate sum into court as security for costs, which further complicated the jurisdictional issue.

After considering the evidence and arguments presented, the court determined that it did not have jurisdiction to hear the case. The plaintiff's lack of assets and presence in Australia, coupled with the inadequate sum offered as security for costs, supported a finding of forum non conveniens. The court declined to exercise jurisdiction and ordered that the proceedings be transferred to another court that had jurisdiction over the matter. This decision underscores the importance of jurisdictional considerations in cases involving foreign corporations and the need for adequate security for costs.