Hancock Prospecting Pty Ltd v Welker

Hancock Prospecting Pty Ltd (Hancock) sought to appeal a decision of the primary judge concerning a dispute with Welker. The central issue revolved around the interpretation of an arbitration clause within a deed, and whether a claim brought by Welker fell within the scope of that clause, thereby necessitating a stay of court proceedings in favour of arbitration.

The Court of Appeal was required to determine whether Welker's claim, which invoked provisions of the *Trustee Act 1962* (WA) and the court's inherent and equitable jurisdiction, constituted a "dispute under this deed" as contemplated by the arbitration clause. This involved considering the breadth of the arbitration agreement and the extent to which defences raised by Hancock, which relied on the deed, impacted the characterisation of Welker's claim.

The Court of Appeal affirmed the primary judge's decision, holding that the arbitration clause was to be construed broadly. Their Honours reasoned that even though Welker's claim was framed by reference to statutory and equitable rights, the underlying subject matter and the defences raised by Hancock were intrinsically connected to the deed. Consequently, the dispute was found to be one "under this deed" for the purposes of the arbitration clause. Leave to appeal was granted, but the appeal was ultimately dismissed with costs.