Johnson Tiles Pty Ltd v Esso Australia Ltd

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FEDERAL COURT OF AUSTRALIA

Johnson Tiles Pty Ltd v Esso Australia Ltd [1999] FCA 56

PRACTICE AND PROCEDURE – three representative proceedings under Part IVA of Federal Court of Australia Act 1976 (Cth) – group members suffered economic loss as the result of cessation of supply of gas in Victoria – abuse of process - whether any of the proceedings vexatious or oppressive – whether proceedings issued for improper purpose of “fishing” or to “capture the market” for the claims of group members – whether any common issues relating to misleading or deceptive conduct and negligence are substantial common issues of law or fact – whether proceedings should be consolidated – whether proceedings are inappropriate as representative proceedings under Pt IVA- whether two solicitors may appear on the record

WORDS & PHRASES – “substantial common issue of law or fact”

Federal Court of Australia Act 1976 (Cth)- Pt IVA, ss 33C(1), 33N(1)(d)
Federal Court Rules O 29 r 5

Gale v Denman Picture Houses Ltd [1930] 1 KB 588 cited
White Industries (Qld) Pty Ltd v Flower & Hart (1998) 156 ALR 169 cited
Silkfield Pty Ltd v Wong (1998) 159 ALR 329 applied
Tropical Shine Holdings Pty Ltd v Lake Gesture Pty Ltd (1993) 45 FCR 457 cited

BETWEEN:

JOHNSON TILES PTY LTD
(ACN 004 576 103)
Applicant
AND:

ESSO AUSTRALIA LIMITED
(ACN 000 018 566)
Respondent
AND BETWEEN: GREGORY ALAN DEAN and others according to the schedule
Applicants
AND: ESSO AUSTRALIA LIMITED
(ACN 000 018 566)
Respondent
AND BETWEEN: EDDIE PIETROBUONO
Trading as Mel’s Pizza and Pasta Bar (on his own behalf and representing the persons referred to in paragraph 1 of the Statement of Claim herein)
Applicant
AND: ESSO AUSTRALIA RESOURCES LTD
(ARBN 000 444 860)
Respondent

JUDGE:

MERKEL J

DATE OF ORDER:

5 FEBRUARY 1999

WHERE MADE:

MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

VG 519 OF 1998
VG 524 OF 1998
VG 526 OF 1998
BETWEEN:

JOHNSON TILES PTY LTD
(ACN 004 576 103)
Applicant
AND:

ESSO AUSTRALIA LIMITED
(ACN 000 018 566)
Respondent
AND BETWEEN: GREGORY ALAN DEAN and others according to the schedule
Applicants
AND: ESSO AUSTRALIA LIMITED
(ACN 000 018 566)
Respondent
AND BETWEEN: EDDIE PIETROBUONO
Trading as Mel’s Pizza and Pasta Bar (on his own behalf and representing the persons referred to in paragraph 1 of the Statement of Claim herein)
Applicant
AND: ESSO AUSTRALIA RESOURCES LTD
(ARBN 000 444 860)
Respondent

JUDGE:

MERKEL J

DATE OF ORDER:

5 FEBRUARY 1999

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

In VG 519 of 1998 and VG 524 of 1998:

1.   The proceedings be consolidated.

2.   Leave be granted to Messrs Slater & Gordon and Maurice Blackburn & Co to appear as solicitors on the record in the consolidated proceeding on condition that until further order they nominate one address for service and engage one set of counsel to represent the applicants and group members.

3.   Leave be granted to the applicants to amend the application and their…

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Details
Case
[1999] FCA 56
Decision Date

CaseChat Overview and Summary

Johnson Tiles Pty Ltd and Esso Australia Ltd were involved in a legal dispute before the Federal Court of Australia. Johnson Tiles, a tile manufacturer, sought to consolidate multiple proceedings against Esso Australia, a petroleum company, to address claims related to alleged environmental contamination. The consolidated cases included VG 519 of 1998, VG 524 of 1998, and VG 626 of 1998. The primary legal issues that the court needed to address were the consolidation of the proceedings, the eligibility of certain law firms to represent the claimants, the amendment of the applicants' statement of claim, and the dismissal of Esso's notices of motion. Additionally, the court had to consider whether the proceedings could continue as a representative action under the Federal Court of Australia Act 1976.

The court ruled in favor of consolidating the proceedings to streamline the litigation process and to avoid the duplication of efforts. It granted leave for Slater & Gordon and Maurice Blackburn & Co to appear as solicitors on the record, provided they met certain conditions. The court also permitted the applicants to amend their statement of claim in accordance with the filed documents and the reasons for judgment. The notices of motion from Esso Australia were dismissed, and Esso was ordered to pay the applicants' costs. In a separate ruling concerning VG 626 of 1998, the court decided to cease the proceeding as a representative action and stayed its prosecution until further order, dismissing Esso's notice of motion and directing that each party bear its own costs. The court reserved the liberty to apply for further orders in the consolidated proceeding.

Orders

Orders of the court

In VG 519 of 1998 and VG 524 of 1998:

1. The proceedings be consolidated.

2. Leave be granted to Messrs Slater & Gordon and Maurice Blackburn & Co to appear as solicitors on the record in the consolidated proceeding on condition that until further order they nominate one address for service and engage one set of counsel to represent the applicants and group members.

3. Leave be granted to the applicants to amend the application and their statement of claim in accordance with the amended statement of claim filed on 7 December 1998, the submissions for the applicants filed on 9 December 1998 and these reasons for judgment.

4. Upon the serving and filing of the amended application and the amended statement of claim in accordance with this order within seven days, the notices of motion dated 29 October 1998 of Esso Australia Ltd be dismissed.

5. Esso Australia Limited pay the applicants’ costs of and incidental to the notice of motion.

6. Adjourn the giving of further directions in the consolidated proceeding to 9.30am on 22 February 1999.

7. Liberty to apply be reserved.

In VG 626 of 1998:

1. The proceeding no longer continue as a representative proceeding under Pt IVA of the Federal Court of Australia Act 1976 (Cth) and until further order prosecution of the proceeding be stayed.

2. The notice of motion given by Esso Australia Ltd dated 29 October 1998 otherwise be dismissed.

3. Each party is to bear its or his costs of and incidental to the notice of motion dated 29 October 1998.

4. Liberty to apply be reserved.

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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