FEDERAL COURT OF AUSTRALIA
Johnson Tiles Pty Ltd v Esso Australia Limited [2001] FCA 421
COURTS – practice and procedure – cross-vesting – representative proceeding involving federal and common law claims – federal claim struck out – real issue raised about the Court’s accrued jurisdiction in respect of the common law claim – whether it is in the interests of justice to transfer the proceeding to the Supreme Court
Federal Court of Australia Act 1976 (Cth) Pt IVA s 33G
Jurisdiction of Courts (Cross Vesting) Act 1987 (Cth) s 5(4)(b)
Supreme Court Act 1986 (Vic) s 4A
Federal Courts (State Jurisdiction) Act 1999 (Vic) s 11Johnson Tiles Pty Ltd v Esso Australia Ltd [2000] FCA 1572 - distinguished
McIntosh v National Australia Bank Ltd (1988) 17 FCR 482 - distinguished
Bell Group v Westpac (2000) 173 ALR 427 - consideredJOHNSON TILES PTY LTD v ESSO AUSTRALIA LIMITED
VG 519 OF 1998 AND VG 524 OF 1998JUDGE: MERKEL J
DATE: 12 APRIL 2001
PLACE: MELBOURNE
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY
VG 519 OF 1998
VG 524 OF 1998
BETWEEN:
JOHNSON TILES PTY LTD AND OTHERS
APPLICANTSESSO AUSTRALIA LTD AND ANOTHER
RESPONDENTS/CROSS-CLAIMANTSAND:
STATE ELECTRICITY COMMISSION OF VICTORIA AND OTHERS
CROSS RESPONDENTS/CROSS-CLAIMANTSBHP PETROLEUM (BASS STRAIT) PTY LTD
CROSS-RESPONDENTJUDGE:
MERKEL J
DATE OF ORDER:
12 APRIL 2001
WHERE MADE:
MELBOURNE
THE COURT ORDERS THAT within 14 days the applicants bring in agreed minutes of orders to give effect to these reasons for judgment and, in the event that any party is not in agreement with the orders proposed by the applicants, that party bring in its proposed orders within 14 days.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY
VG 519 OF 1998
VG 524 OF 1998
BETWEEN:
JOHNSON TILES PTY LTD AND OTHERS
APPLICANTSESSO AUSTRALIA LTD AND ANOTHER
RESPONDENTS/CROSS-CLAIMANTSAND:
STATE ELECTRICITY COMMISSION OF VICTORIA AND OTHERS
CROSS-RESPONDENTS/CROSS-CLAIMANTSBHP PETROLEUM (BASS STRAIT) PTY LTD
CROSS-RESPONDENTJUDGE:
MERKEL J
DATE:
12 APRIL 2001
PLACE:
MELBOURNE
REASONS FOR JUDGMENT
In September 1998 an explosion and fire occurred at the respondents’ (“Esso”) Longford plant. Shortly thereafter the applicants commenced a representative proceeding against Esso under Pt IVA of the Federal Court of Australia Act 1976 (Cth) (“the FCA Act”). Esso brought a cross claim seeking contribution and indemnity from numerous cross respondents, including agencies of the State of Victoria (“the State entities”).
The applicants’ proceeding in this Court was based on two causes of action: negligence and breach of s 52 of the Trade Practices Act 1974 (Cth). After numerous interlocutory challenges to the s 52 claims, a Full Court finally struck them out as untenable: see Johnson Tiles Pty Ltd (ACN 004 576 103) v Esso Australia Ltd (2000) FCA 1572. Although a Pt IVA proceeding requires a federal claim to found the jurisdiction of the Court (s 33G of the FCA Act),…
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- Case
- [2001] FCA 421
- Decision Date
CaseChat Overview and Summary
The Court concluded that it was in the interests of justice to transfer the proceeding to the Supreme Court. The Court noted that the proceeding was now a common law proceeding in negligence and that the issues raised on the cross-claim would no longer involve any substantial federal cause of action. The Court found that the Supreme Court was better placed to hear and determine all of the claims in the matter and that the risks of absence of jurisdiction in the Supreme Court were less than those in the Federal Court. The Court also considered the interests of the applicants and group members who expected their claims to be adjudicated in a court with jurisdiction. The Court ordered that the proceeding be transferred to the Supreme Court within 14 days, but if any or all of the applicants commenced a related proceeding in the Supreme Court within that period, the transfer would take effect upon the commencement of that proceeding. The Court also made orders relating to costs incurred in the Federal Court proceeding.
The Court's decision was based on the need to ensure that the claims were heard in a court with undoubted jurisdiction and to avoid duplication of interlocutory proceedings and liability for interlocutory costs. The Court considered the applicants' concerns about procedural and costs risks but ultimately determined that it was in the interests of justice to transfer the matter to the Supreme Court. The Court's decision aimed to provide certainty and efficiency in the resolution of the claims while taking into account the complex jurisdictional issues involved.
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