Moldauer v Constellation Brands Inc

In Moldauer v Constellation Brands Inc, the Supreme Court of South Australia considered an appeal by Mr Moldauer against an order permanently staying the action he brought against Constellation Brands Inc (CBI). The appellant claimed damages for non-payment of wages under what he alleged to be an extant contract of employment with CBI. CBI contended that the appellant’s employment was terminated in accordance with the terms of a severance agreement. The appeal focused on whether the South Australian court was a clearly inappropriate forum for the determination of the dispute.

The court considered the factors relevant to determining whether the South Australian court was a clearly inappropriate forum, including the location of witnesses, the law governing the relevant transaction, and the costs of litigating the matter in Australia. The court held that the relevant questions would involve a consideration of the law of New York, discovery of documents held in the United States, and testimony from witnesses residing in the United States. The court found that the South Australian court was a clearly inappropriate forum, and dismissed the appeal.

The court also considered the contention by CBI that the severance agreement gave the courts of New York exclusive jurisdiction. The court found that the jurisdiction clause did not provide that all, or any, legal controversies must be submitted to the courts of the State of New York for adjudication. The court was not persuaded by CBI’s alternative contention.

The final orders of the court were to dismiss the appeal and to uphold the Master's decision that the South Australian court was a clearly inappropriate forum for the determination of the dispute. The Master's costs order remained undisturbed.