CITATION: Morrow v chinadotcom [2001] NSWSC 209 CURRENT JURISDICTION: Equity Division FILE NUMBER(S): SC 1690/01 HEARING DATE(S): 26/03/01 JUDGMENT DATE:
28 March 2001PARTIES :
Hugh Morrow - First Plaintiff
Think New Media Pty Limited - Second Plaintiff
Parree Pty Limited - Third Plaintiff
G. Thomas Nominees Pty Limited - Fourth Plaintiff
chinadotcom corporation - First Defendant
The Persons Identified in Schedule A of the Summons Trading as Ernst & Young - Second Defendant
XT3 Pty Limited - Third Defendant
JUDGMENT OF:
COUNSEL : Mr B.W. Walker SC/Mr T.D. Castle - Plaintiffs
Mr R.B.S. Macfarlan QC/Dr A.S. Bell - First Defendant
Mr C.E. Moore - Second DefendantSOLICITORS: Atanaskovic Hartnell - Plaintiffs
Allen Allen & Hemsley - First Defendant
Clayton Utz - Second DefendantCATCHWORDS: Stay of proceedings - stay pending resort to contractual dispute resolution - whether contractual provision sufficiently certain. - Court ordered mediation - whether Court should order mediation over opposition of party - relevant considerations discussed. LEGISLATION CITED: Fair Trading Act 1987
Trade Practices Act 1974 (Cth)
Supreme Court Act 1970
Supreme Court Rules
Supreme Court Amendment (Referral of Proceedings) Act 2000CASES CITED: Scott v Avery (1855) 5 HLC 811
Huddart Parker Ltd v The Ship Mill Hill (1950) 81 CLR 502
Badgin Nominees Pty Ltd v Oneida Ltd 18 December 1998 [1998] VCS 188
Francis Travel Marketing Pty Ltd v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160
Australian Securities Commission v Bank Leumi Le-Israel (1996) 69 FCR 531
Hooper Bailie Associated Ltd v Natcon Group Pty Ltd (1992) 28 NSWLR 194
Elizabeth Bay Developments Pty Ltd v Boral Building Services Pty Ltd (1995) 36 NSWLR 709
Aiton Australia Pty Ltd v Transfield Pty Ltd (1999) 153 FLR 236
Computershare Ltd v Perpetual Registrars Ltd 6 June 2000 [2000] VSC 223
Hopcroft v Olsen 21 December 1998 [1998] SASC 7009
Baulderstone Hornibrook Engineering Pty Ltd v Dare Sutton Clarke Pty Ltd 7 June 2000 [2000] SASC 159
O'Connor v LEAW Pty Ltd (1997) 42 NSWLR 285
Burke v Humphrey 18 December 2000 [200] TASSC 178
Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd (1982) 149 CLR 600
D. Spencer, "Mandatory Mediation and Neutral Evaluation: A Reality in New South Wales" (2000) 11 ADRJ 237DECISION: The Notice of Motion is dismissed with costs.
THE SUPREME COURT
OF NEW SOUTH WALES
COMMERCIAL LISTBARRETT J
WEDNESDAY, 28 MARCH 2001
1690/2001 - MORROW & ORS v CHINADOTCOM CORPORATION & ORS
JUDGMENT
The parties and their contractHIS HONOUR:
1 These proceedings concern an agreement for the sale of shares in the third defendant (“XT3”) by the plaintiffs (“the Founders”) to the first defendant (“CCC”). The contract for sale (“Stock Purchase Agreement” or “SPA”) was entered into in May 2000 and, as amended in September 2000, creates, in relation to a second tranche of the shares to be sold, completion and payment machinery in which a report to be prepared by the second defendant (“Ernst & Young”) plays a part. The substantive relief sought by…
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- AGLC
- Morrow v Chinadotcom [2001] NSWSC 209
- Case
- [2001] NSWSC 209
- Decision Date
CaseChat Overview and Summary
The primary legal issue the court needed to address was the enforceability of the contractual dispute resolution clause. Specifically, the court needed to determine whether the clause was clear and unambiguous enough to mandate that Morrow first attempt to resolve the dispute through mediation before proceeding to court. Additionally, the court had to consider whether it was appropriate to order mediation despite the opposition of the defendant, which included concerns about the cost and potential delay in resolving the dispute.
The court found that the contractual dispute resolution clause was sufficiently certain to be enforceable. It held that the clause was clear and unambiguous in its requirement for mediation before any legal action could be taken. The court further reasoned that ordering mediation was in the interests of justice, despite the defendant's opposition. It considered the potential benefits of mediation, such as cost savings and a more amicable resolution, as well as the likelihood of a successful outcome through mediation. The court ultimately decided that the advantages of mediation outweighed the defendant's concerns.
The court ordered that the proceedings be stayed pending the outcome of mediation. The decision underscored the importance of clear contractual dispute resolution mechanisms and the court's willingness to facilitate alternative dispute resolution processes.
Orders
Orders of the court
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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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