Mineral Resources Limited v Langford

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FEDERAL COURT OF AUSTRALIA

Mineral Resources Limited v Langford [2018] FCA 1532

File number: WAD 635 of 2017
Judge: BARKER J
Date of judgment: 11 October 2018
Catchwords: PRACTICE AND PROCEDURE – interlocutory application for further and better particulars of defence – where parties agreed application should be determined on the papers
Legislation:

Australian Consumer Law (Sch 2 of the Competition and Consumer Act 2010 (Cth))

Corporations Act 2001 (Cth)

Date of hearing: Determined on the papers
Date of last submissions: 18 September 2018
Registry: Western Australia
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Regulator and Consumer Protection
Category: Catchwords
Number of paragraphs: 22
Solicitor for the Applicant: Bennett + Co
Solicitor for the Respondent: HWL Ebsworth Lawyers

ORDERS

WAD 635 of 2017
BETWEEN:

MINERAL RESOURCES LIMITED (ACN 118 549 910)

Applicant

AND:

MICHAEL LANGFORD

Respondent

JUDGE:

BARKER J

DATE OF ORDER:

11 OCTOBER 2018

THE COURT ORDERS THAT:

1.The respondent provide within 21 days further and better particulars of [21.2] of the defence as requested in the applicant’s notice for further and better particulars dated 15 May 2018.

2.There be no order as to costs on the interlocutory application dated 15 May 2018.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

BARKER J:

  1. This judgment deals with the applicant’s application for further and better particulars of [21.2] and [23.2] of the respondent’s defence.  The parties agreed that I should determine the application on the papers.

  2. In support of its application, the applicant filed two affidavits of Alastair Thomas Forward made 15 May 2018 and 8 August 2018.

    THE CLAIMS AND RELEVANT PLEADINGS

  3. In the proceeding, the applicant claims:

    ·A declaration that the respondent engaged in misleading or deceptive conduct, or conduct likely to mislead or deceive in contravention of the Australian Consumer Law (ACL) being Sch 2 of the Competition and Consumer Act 2010 (Cth), and the Corporations Act 2001 (Cth).

    ·Orders and injunctions pursuant to the ACL that the respondent forthwith be restrained from making the representations concerning the applicant of the kind made by a publication via the internet on 30 November 2017 and 6 December 2017, of and concerning any part of the applicant’s lithium operation at Wodgina; and publish a retraction as well as remove or delete publications within his control from the internet.

  4. By its statement of claim, so far as the misleading or deceptive conduct claim is concerned, the applicant pleads as follows:

    The Parties

    1        The Applicant (MRL) is and at all material times has been:

    1.1a company duly incorporated under the Corporations Act 2001 (Cth);

    1.2entitled to sue in its own name;

    1.3carrying on the businesses (inter alia) of mining and exporting for sale lithium ore;

    1.4a company whose securities are listed for quotation on the Australian Securities Exchange (ASX) under the ASX code ‘MIN’ and therefore a disclosing entity pursuant to the Corporations Act 2001 (Cth).

    2        The Respondent…

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Details
Case
[2018] FCA 1532
Decision Date

CaseChat Overview and Summary

Mineral Resources Limited filed an application for further and better particulars of the defence filed by Langford in a proceeding before the Federal Court of Australia. The core of the dispute between the parties concerns the risk of losing customers in China, specifically mentioning Baosteel and RuiFu. The court was tasked with deciding whether the respondent should provide further and better particulars of the defence in relation to the risk of losing these customers.

The legal issues revolved around the adequacy of the particulars provided by the respondent and whether the applicant was at risk of losing significant customers in China. The respondent argued that the risk was a matter of both logic and common sense, while the applicant sought more specific details to better prepare its case. The court agreed with the respondent's submission that the risk was indeed logical and sensible, thus requiring further clarification.

The court concluded that the respondent must provide further and better particulars of the defence within 21 days, specifically relating to the risk of losing customers in China. The court found that both parties had partially succeeded in their respective submissions and therefore did not make any order as to costs for the interlocutory application. The court's orders mandated that the respondent provide the requested particulars within the specified timeframe and that no costs be awarded for the application.

Orders

Orders of the court

1. The respondent provide within 21 days further and better particulars of [21.2] of the defence as requested in the applicant’s notice for further and better particulars dated 15 May 2018.

2. There be no order as to costs on the interlocutory application dated 15 May 2018.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

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Decision

Reasons for decision

As to particulars of the applicant being “at risk” of losing one or more customers in China, including Baosteel and RuiFu, I accept the submission made by the respondent in [18] of his written submissions set out above. In particular I agree that relevant risk arises as a matter of both logic and common sense.CONCLUSION AND ORDERS In these circumstances, I would order that the respondent provide further and better particulars of [21.2] of the defence as requested by the applicant. So far as costs of this application are concerned, given that the applicant and the respondent have succeeded in part in obtaining an order for particulars and resisting the provision of particulars respectively, I will not make any order as to costs. The Court orders:(1)The respondent provide within 21 days further and better particulars of [21.2] of the defence as requested in the applicant’s notice for further and better particulars dated 15 May 2018.(2)There be no order as to costs on the interlocutory application dated 15 May 2018.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.