Hooks Enterprises Pty Ltd v Sonnenberg Pty Ltd

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SUPREME COURT OF QUEENSLAND

CITATION:

Hooks Enterprises Pty Ltd v Sonnenberg Pty Ltd & Ors  [2017] QSC 69

PARTIES:

HOOKS ENTERPRISES PTY LTD (ACN 010 082 998)

(plaintiff)

v

SONNENBERG PTY LTD (ACN 117 668 667)

(first defendant)

BRUCE QUENTIN SHELLY QUARTERMAN

(second defendant)

BENJAMIN POWELL GRIFFIN

(third defendant)

FILE NO/S:

BS No 11414/16

DIVISION:

Trial Division

PROCEEDING:

Application

DELIVERED ON:

4 May 2017

DELIVERED AT:

Brisbane

HEARING DATE:

23 January 2017

JUDGE:

Daubney J

ORDER:

1.    The proceeding be stayed pending completion of the dispute resolution and expert determination procedure provided for in clause 12 of the Development Management Agreement dated 20 December 2012.

2.    I will hear the parties as to the costs of this application.

CATCHWORDS:

PROCEDURE – STATE AND TERRITORY COURTS: JURISDICTION, POWERS AND GENERALLY – INHERENT AND GENERAL STATUTORY POWERS – TO STAY OR DISMISS ORDERS OR PROCEEDINGS GENERALLY – where a stay of the proceeding was sought on the basis of an alternative dispute resolution clause – where the parties had agreed to refer disputes to expert determination – whether the dispute is amenable to expert determination – whether there is a proper basis to exercise the discretion to allow the proceeding to continue – whether the proceeding should be stayed pending the performance of the dispute resolution process

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – CONSTRUCTION AND INTERPRETATION OF CONTRACTS – INTERPRETATION OF MISCELLANEOUS CONTRACTS AND OTHER MATTERS – where the parties had agreed to an alternative dispute resolution procedure – where the procedure involved referral to expert determination – where the agreement did not prevent proceedings being brought – where proceedings had been commenced before the alternative dispute resolution procedure was commenced – whether the agreement still required the parties to participate in the alternative dispute resolution procedure

Channel Tunnel Group Ltd & Anor v Balfour Beatty Construction Ltd & Ors [1993] AC 334, cited

Dance with Mr D Ltd v Dirty Dancing Investments Pty Ltd [2009] NSWSC 332, cited

Downer EDI Mining Pty Ltd v Wambo Coal Pty Ltd
[2012] QSC 290, cited

Santos Ltd v Fluor Australia Pty Ltd [2016] QSC 129, cited

Straits Exploration  (Australia) Pty Ltd v Murchison United NL
(2005) 31 WAR 187, applied

Zeke Services Pty Ltd v Traffic Technologies Ltd
[2005]
2 Qd R 563, considered

COUNSEL:

D de Jersey for the applicant defendants

R J Anderson QC for the respondent plaintiff

SOLICITORS:

Thynne & Macartney for the applicant defendants

Thomson Geer for the respondent plaintiff

Background

  1. By a ‘Development Management Agreement’ (“DMA”) dated 20 December 2012, the first defendant was to provide certain services to the plaintiff, principally to obtain development approval to construct a fast food or convenience store (“the Project”) on the plaintiff’s property, and to facilitate construction of that development.

  1. By mid-2016, no tenancies had been secured for the property and the final design for the construction of the Project had not been finalised.  On 5 September 2016, the plaintiff terminated the DMA.

  1. On 4 November 2016,…

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Details
Case
[2017] QSC 69
Decision Date

CaseChat Overview and Summary

Hooks Enterprises Pty Ltd (Hooks) brought proceedings against Sonnenberg Pty Ltd (Sonnenberg) alleging breaches of contract and seeking various remedies. Sonnenberg applied to the Supreme Court of Queensland for a stay of the proceeding, arguing that the parties had agreed to resolve their disputes through expert determination and that the proceeding should be stayed pending completion of this process. The primary issue before the court was whether the agreement for expert determination required the parties to participate in that process before bringing proceedings, and if so, whether the court should exercise its discretion to stay the proceeding. The court considered the terms of the Development Management Agreement, which included a clause requiring the parties to refer disputes to expert determination, and noted that the agreement did not prevent proceedings being brought. The court also considered whether the dispute was amenable to expert determination and whether there was a proper basis for exercising the discretion to allow the proceeding to continue.

The court held that the agreement for expert determination was binding and required the parties to participate in that process before bringing proceedings. The court noted that the dispute was amenable to expert determination and that there was a proper basis to exercise the discretion to stay the proceeding. The court considered the need for certainty and finality in contractual arrangements and the importance of parties adhering to agreed dispute resolution processes. The court held that the proceeding should be stayed pending completion of the dispute resolution and expert determination procedure provided for in clause 12 of the Development Management Agreement. The court also ordered that the parties be heard as to the costs of the application.

Orders

Orders of the court

1. The proceeding be stayed pending completion of the dispute resolution and expert determination procedure provided for in clause 12 of the Development Management Agreement dated 20 December 2012.

2. I will hear the parties as to the costs of this application.

Background

Background to the litigation

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Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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