J & M O'Brien Enterprises Pty Ltd v Shell Company of Australia

Case [1982] FCA 97


IN THE TEDER.\L COURT OF AUST’r’AJ.IA )
1 N o . G 334 o f 1 9 8 0
NEW SOUTH WALES D I S T R I C T R E G I S T R Y ) No. G 11 of 1g81
GENERAJ. D I V I S I O N
J . 6 M. O ’ B R I E N E N T E R P R I S E S P T Y .
L I M I T E D -
Applicant
THE SI-IELI. COW’AhY OF h U S T R 9 L I A L I b T I T E D
-

R e s p o n d e n t

THE SHELL CO>IPANY OF AUSTRALIA J ,TMITED

-

C r o s s - C l a i m a n t

J . 6 M. O ‘ B R I E N E K T E R P R I S E S P T Y .
L I P I I T E D , JOHN JA?lES O‘BRIXA’ ASD MONICA
-
A L I C E O ‘ U R I E N

C r o s s - R e s p o n d e n t s

O R D E R

JUDGE >LAKING ORDER:  Fox J
D:\TE OF ORDER: 3 June 1 9 8 2
IVHERE L \ D E : Sydney
T h e C o u r t o r d e r s t h a t : -
1. Judgment b e e n t e r e d Cor J . J . O ’ B r i e n and F1.A.
O ’ B r i e n l i l t h c o s t s .
I h THE FEDERAL COUIU OF AUSTRALIA )

No. G 134 o f 1980

IiEW SOUTH WALES DISTRICT REGISTRY , ) N o . G 11 oi 1 ~ 8 1
GEKERAL DIVISIOK 5
J . 8 h l . @ ' B R I E Y ENTLRPKISES PTY.
LIMITED -

A p p l ~ c a n t

THE SHELL COlrlPAKY OF AUSTRALIA LIMITED

Rcsponclent

THE SHELL COFIPAh'Y OF AUSTRALIA L I h I I T E D

Cross-Claimant

J . 8 M. O ' U R I E N ENTERPRISES PTY.
L I M I T E D , J O H U JAlICS O'URIES A N I ) hlOYiICA
-
A L I C E O ' B R I E N

Cross-Rcsponclcnts

Coram:  Fox J
  1. June 1982.

    EX TEMPORE JUUGhIEKT

This 1s an app l l ca t ion by two o f the c r o s s -
r c sponden t s i n case numbers G 134 o f 1 9 8 0 and G 11 o f
19S1, namcly, John J a m s O ' B r i e n a n d lrlonica M i c e
O'Brlen, f o r judgment aga ins t the c ross -c la lmant , 'I'hc
S h c l l Company o f Aus t r a l i a L imi t ed .
Thc a p p l l c a t i o n comcs a f t e r t h e a p p l i c a n t i n
cases numbercd G 134 of 1980 and G 11 o f 1981, being
a l s o a c ross - rcspondent i n b o t h c a s e s , t h a t i s , J . and
b l . O'Br ien Enterpr i ses P ty . L iml tcd , has l cd i t s evidence-
- i n - c h l e f ; and a f t e r t h e r e s p o n d e n t The S h e l l Company of
A u s t r a l i a L i m i t e d , has adduced i t s ev idence in de fcnce
and on t h e c r o s s - c l a i m .
'The a p p l l c a t l o n i s made a t t h i s s t a g e by
agrccment of a l l t h c p a r t i c s a n d , o f c o u r s c , i t 1s
emincnt ly convenient tha t it be made a t no l a t e r p o i n t of
time .
F o r the purpose o f t h e a p p l i c a t i o n , I havc

been provided wi th an agrccd s ta tement of fac ts Inc luding

an acceptance on both s i d e s o f some o f the ev ldence of
Mr. Jacobs , who has g iven ev idence . These fac ts a re
mtenclcd t o be f i n a l and bcyond subsequent challengc s o
f a r as the); bea r on t h e p r e s e n t m a t t e r .
The q u e s t i o n , s h o r t l y s t a t e d , 1s whether Mr. and
Mrs. O 'Br icn werc par t lcs to the l e a s e o f the premlses by
The S h c l l Company of Australia Llmited, which i s a t t h e
c e n t r e o f t h e p r e s e n t l i t i g a t i o n . They were (and a re) t h e
o n l y d i r c c t o r s of t h e Company.
The l e a s e was f o r a tcrm 01 t h r c c y e a r s and t a k e s
t h e rorm o f a deed. In thc placc where thc document i s
cxecuted I t seems, plainly enough, to have been cxccuted

by t h e names - or

company

and not by

the O 'Br iens ; a l though

the i r

what I t a k c t o b e t h e i r namcs - appea r t oge the r

wi th somc t h a t p a r t i c u l a r p a g e .

o t h e r

namc

a t t h e b o t t o m r ~ g h t - h a n d c o r n e r

o f

The s e a l o f t h e company i s a f f i x e d and I t a k e
and a f f i x e d i n a c c o r d a n c e w i t h t h c A r t i c l e s o f A s s o c i a t i o n o f i t has no t been a rgued o thc rb i se - t h a t i t i s
It -
t h e company.
The s e a l oE t h e company, w i t h l n l t l a l s whlch
appear t o be those of the pcrsons who a t t e s t e d t h e s e a l
01 t h e company on the page to which I have j u s t r e f e r r e d ,
appea r s a l so on t h e o t h c r p a g e s o f t h c l e a s e . On some of
thosc pagcs , perhaps on a l l o f t hem, the re a re o the r
i n i t i a l s which I t ake to be those oE one of the persons
concerncd wi th the execut ion O E t h e document by t h c S h e l l
Company.
I n t h e commenccment o f t h e l e a s e I t i s s a l d
t h a t t h e p a r t i e s t o t h e l e a s c a r e Thc S h e l l Company of
A u s t r a l i a ancl t h e l e s s e e , whose name and address i s s e t
ou t I n t h e f i r s t schedu le . The rc t hen a r i s c s a problem
becausc a longs ic lc the typcd or pr in ted dcs lgna t ion " lessee"
i n t h e f i r s t schedu le the re 1s t h c numher 1 i n m a n u s c r i p t
and fo l lowing tha t appears the namc o f t h c company J . and
Id. O'Br ien Enterpr i ses P ty . L imi ted . Unrlcr t h a t t h c
number 2 has been wr i t t en in and the namcs O F John James
O'Bricn and Elonlca Allce O'Brien are set out beside I t .
The agreed s ta tement o f Facts says that \<hen
t h e i r names were s c t o u t t h e word " d l r e c t o r s " was p u t i n
b racke t s unde r the i r names b u t somebocly unkno\cn has s ince
s t r u c k t h a t o u t . No suhmission i s made s imply on t h e
b a s i s o f t h a t a l t c r a t l o n . I t secms t h a t I shoulcl construe
t h e document a s i f t h e word was s t i l l t h e r e .
The way i n which i t came a h o u t t h a t t h c i i g u r e s
1 and 2 \ \ ' e re lnser tcd and the var ious namcs p u t a l o n g s i d e
thcm 1s expla lncd i n t h e e n d e n c e o f Mr. Jacohs and i t
seems p l a i n from t h a t e v i d e n c e t h a t t h e r c \\-as no i n t e n t i o n
on t h e p a r t o f t h e S h e l l Company o r on t h e p a r t o f t h c
O 'Br i ens tha t t hc O 'Br l ens l i e r e to be pa r ty t o t h e a g r e c -
ment as we l l as t h c Company. I t scems t o me, l o o k i n g a t
t h e document as a whole and taking somc a s s i s t a n c c Crom
the ev idence o f Mr. J a c o b s , t h a t t h c p a r t i c s w e r e The
S h e l l Company o f A u s t r a l i a and J . and M. O'Br ien Enter -
prises Pty. J . imlted, and thc O'Briens were not par t ies t o
i t .
This conclus ion i s suppor ted by r c f c r e n c e t o t h c
way i n which the Shel l Company and the Company t h c r c a I t e r
a c t e d , some d e t a i l s o f w h ~ c h a r e s e t o u t i n t h e a g r e e d
s t a t c m e n t o f f a c t s . If t h c document were i t s e l f r e g a r d e d
as suf Elclent ly ambjauous o r uncertain as t o t h e q u e s t l o n
of p a r t i c s I would r ega rd thc ev idcnce o f subsequent con-
duc t as b e i n g c o n c l u s i v e i n f a v o u r o f t h c v i c w t h a t t h e
company was a p a r t y and Mr. and Mrs. O'Rricn were not . I t
seems t o mc, however, that thc documcnt j t s c l f , w i t h o u t
any e x t r i n s i c e v i d e n c c , shows a n i n t e n t i o n t h a t i t bc the

Company which I S t h c lessce and no t Mr. and Mrs. O'Brien.

I am t h e r e r o r e o f t h e v i e w t h a t t h e p a r t i e s t o
t h c l e a s e a r e The S h e l l Company and J . and M. O'Brien
En tc rp r l se s P ty . L imi t ed and tha t Mr. and hlrs, O'Brien werc
n o t p a r t i e s t o i t . I u n d e r s t a n d i n t h a t s l t u a t l o n i t I S
- 4

agreed judgment shou ld go for the O'Briens and I ordcr

that Judgment be entered accordingly.

i

i i
I N TFIC FEDER.AL C O U R T OF AUSTRALIA )
J NO. G 133 of 1 9 ~ 0
NCII' SOUTH I\'ALCS DISTRICT REGISTRY ) No. c of
1

3. 6 N. O ' B R I E N EIiTEKPRISES PTY.

LIlrlITEU

Applicant

THE SHELI, COhlPAh'Y OF AUSTRA1,IA IJIhlITEIJ

Respondent?

THE SIIRLL CObIPXNY Or .AUSTRALIA J,IhIITEI)

C r o s s C l a m a n t
J . 6 N. O ' B R I E N EKTERPRISES PTY.
LI>!ITEJ), J O H N JAYES O'BKIEI ' ; AND FIONICA
!\LICE O ' B R I E N
Cross Respondcnts
Coram:  Fox J
5 June 1952.

EX TEMPORE JUDGlrIENT

Counscl f o r Mr. and Mrs. O 'Br ien have asked
t h a t J u d g m e n t be e n t e r c d f o r t h e m w i t h c o s t s , and t h i s
a p p l l c a t i o n h a s b c e n r e s i s t e d substantially on two
g rounds . Onc i s t h a t i t i s s a l d t h a t t h e y should n o t
h a v c b e e n s e p a r a t e l y r e p r e s e n t c d b u t s h o u l d have h a d , s o
f a r as c o u n s e l a n d s o l i c l t o r are conce rned , one r ep -
r e s e n t a t l o n w i t h t h c Company o f w h i c h t h e y a r c d l r e c t o r s .
They have I n f a c t had. one r c p r e s c n t a t l o n s o far as t h e l r
solicitor I S c o n c c r n e d . T h e y w c r e p u t o n n o t l c e t h a t
t h c r e may be somc o b j e c t i o n t o t h e i r h a v i n g , 1 n t h a t
e v e n t , s e p a r a t c r e p r c s e n t a t i o n by counse l . The o t h e r
ground, lshich goes to par t only of thc costs , i s t h a t
t he app l i ca t ion wh ich I have j u s t hcard and dcterrnlncd
should have bcen made a t a n e a r l i e r t i m e .
Like most questions o i c o s t s , I t h i n k t h e
p o s i t i o n i s n o t e n t i r e l y s t r a i g h t f o r w a r d i n t h e s e n s e
t h a t t h e r c i s s o m e t h i n g t o b e s a i d on ho th s ides . IIow-
ever , one i s bound t o be in f luenced by t h c common p r a c t i c e
and unde r s t and ing i n t hese ma t t e r s . Thc o r d i n a r y r u l e -
as i s agrecd - i s t h a t , i f a n a p p l i c a n t o r p l a i n t i f f
j o ins s eve ra l r c sponden t s o r defendants , they a rc p r tn ia
f a c l c e n t i t l c d t o s c p a r a t c r e p r c s e n t a t i o n by c o u n s e l l f
no t by s o l l c i t o r s . T h e r c a r e somc we l l known excep t ions
t o t h i s r u l e , p a r t i c u l a r l y i n t h e e q u l t a b l c j a r i s d i c t l o n ,
bu t t hose a re excep t ions wh ich p roceed upon spec la l con-
s i d c r a t i o n s and do n o t a s s i s t i n t h e p r e s e n t c a s e .
I t IS t h e f a c t t h a t Mr. and Mrs. O 'Br ien a re
the on ly two d i r e c t o r s o f t h e company, and t h a t much of
t hc r e l cvan t conduc t - perhaps a l l o f i t - xh lch i s com-
p la incd of has bcen car r icd out on beha l f oE t h e company
by Mr. O 'Br i cn , hc ac t ing a s agen t fo r i t . The
s i t u a t i o n o f Mrs. O'Bricn i n t h i s c o n n e c t i o n i s n o t c l e a r .
I t IS d o u b t l e s s t r u e , t o o , t h a t t h e same evidence f o r t h e
r e sponden t , t he c ros s -c l a iman t , i ncu lpa te s bo th t hc
company and the O'Briens - i n o t h e r w o r d s , t h e e v i d c n c e
i s probably thc same, o r v i r t u a l l y s o .
Holsever, t h a t d o c s n o t c o n c l u d e t h e m a t t e r .
The f a c t 1s t h a t t h e O ' B r l e n s w e r c s p e c i a l l y ~ o ~ n c d
a f t e r t h e c a s c f i r s t came i n t o t h e C o u r t f o r h e a r i n g ,

and some s p e c i f i c a l l y d i r e c t e d

a l l e g a t i o n s I n t h e

amended

p1 eadlngs wcre

t o t he i r conduc t as d ~ s t i n c t from
t h a t o f t h e company. I t secms t h a t a t t h a t s t a g e t h e i r
s e p a r a t e r e p r e s e n t a t i o n was contemplated. One
a l l e g a t i o n made a g a i n s t them i s a s e r i o u s one invo lv ing
s p e c i f i c c r i m i n a l b e h a v i o u r . I t seems t o me i n a l l t h e
c i rcumstances tha t the judgment should car ry cos ts .
The next ques t ion , which I a l s o f i n d n o t t o
bc e n t i r e l y c l c a r o f s o l u t i o n , i s lchether somc a c t l o n
should not have hcen taken on h c h a l 1 o f Mr. and Mrs.
O ' B r l e n a t an c a r l l e r s t a g e , t o reduce the amount o i
cos t s t ha t were i nvo lved . An example glvcn 1s t h a t t h e y
could a t an ca r ly s t age have sough t t o be dismisscd from
t h e s u i t . I am n o t c l e a r t h a t t h i s would have becn an
a p p r o p r i a t c c o u r s e i n t h e C i r c u m s t a n c e s .
The o t h e r a c t i o n would have becn one taken in
r e l i a n c e upon Order 2 9 01 t h c r u l e s o r t h l s C o u r t . I
u n d e r s t a n d t h a t t h e r c i s a s l m l l a r r u l e i n t h e ncw r u l c s
o f t h e Suprcmc Court . That perhaps would have cnabled
t h e i s s u c t o b e i s o l a t e d a t an c a r l y s t a g c b u t no
a p p l i c a t i o n was made on e i t h e r s i d e t h a t such R coursc be
f o l l o m d . The p r e s e n t a p p l i c a t i o n i s p robab ly bcs t
regarded as one made under Ordcr 2 9 ; o the rwise i t should
be seen a s an app l i ca t ion fo r j udgmen t , made a t an
unusual s tage . The p a r t i e s Icere of coursc agreed that
I t should be heard and declded when i t was, and on t h e

m a t e r i a l s p r e s e n t e d .

On the whole I am 01 t h e o p i n l o n t h a t t h e r e
should be no r educ t ion In t h e c o s t s whlcll the O'Briens
would normally get . I ordcr tha t judgment be en te red
f o r them n t h c o s t s .
Details
AGLC
J & M O'Brien Enterprises Pty Ltd v Shell Company of Australia [1982] FCA 97
Case
[1982] FCA 97
Decision Date

CaseChat Overview and Summary

This case involved an application by John James O'Brien and Monica Alice O'Brien for judgment against The Shell Company of Australia Limited. The application was made after the applicant, J. and M. O'Brien Enterprises Pty Ltd, had led its evidence-in-chief and after the respondent, The Shell Company of Australia Limited, had adduced its evidence in defence and on the cross-claim. The application was made by agreement of all the parties and it was considered convenient that it be made at that time. The issue before the court was whether Mr. and Mrs. O'Brien were parties to the lease of the premises by The Shell Company of Australia Limited. The court held that Mr. and Mrs. O'Brien were not parties to the lease and that the parties to the lease were The Shell Company and J. and M. O'Brien Enterprises Pty Ltd.

The court also considered whether the O'Briens should have been separately represented by counsel and whether the application should have been made at an earlier time. The court held that the O'Briens were entitled to separate representation by counsel and that there should be no reduction in the costs which they would normally get. The court ordered that judgment be entered for the O'Briens with costs.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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