Nowra Radiology Pty Ltd v Macintosh

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FEDERAL COURT OF AUSTRALIA

Nowra Radiology Pty Ltd v Macintosh [2020] FCA 731

File number: NSD 2178 of 2018
Judge: STEWART J
Date of judgment: 26 May 2020
Catchwords: PRACTICE AND PROCEDURE – competing applications regarding adoption or rejection of referee report – whether adoption of referee report consistent with the overarching purpose pursuant to ss 37M and 37N of the Federal Court of Australia Act 1976 (Cth) – relevant principles – whether findings made in the referee report relevant to the issues in dispute – whether expert has the relevant expertise – whether referee identified rational basis for findings made – order for the adoption of referee report with variations made
Legislation: Federal Court of Australia Act 1976 (Cth) ss 37M, 37N
Cases cited:

Chocolate Factory Apartments Limited v Westpoint Finance Pty Limited [2005] NSWSC 784

Sheehan v Lloyds Names Munich Re: Syndicate Ltd [2017] FCA 1340

Stone v Ebeid [2020] FCA 343

Weston v Rajan [2019] FCA 1455

Date of hearing: 26 May 2020
Registry: New South Wales
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Category: Catchwords
Number of paragraphs: 40
Counsel for the Applicants: C Conde
Solicitor for the Applicants: Access Law Group
Counsel for the Respondent: J Mee
Solicitor for the Respondent: Cullen Macleod

ORDERS

NSD 2178 of 2018
BETWEEN:

NOWRA RADIOLOGY PTY LTD (ACN 166 387 980)

First Applicant

NOWRA RADIOLOGY OPERATIONS PTY LTD (ACN 603 000 675)

Second Applicant

JANET ELIZABETH MACINTOSH

Third Applicant

AND:

PETER DOUGLAS MACINTOSH

Respondent

JUDGE:

STEWART J

DATE OF ORDER:

26 MAY 2020

THE COURT ORDERS THAT:

1.The report of Dr Allan Watt as referee dated 10 December 2019 is adopted pursuant to rule 28.67(1) of the Federal Court Rules 2011 (Cth) subject to the following variations:

1.1. Paragraphs [4.5.2] on page 8, [4.5.3] on page 8, [4.5.4] on page 9 and [14.16] on page 11 are deleted;

1.2.Paragraphs [4.2.1] on page 7 and [4.12] on page 10 are to reflect that Peter Macintosh is the registrant for the domain name nowraradiology.com and the Fidelity Trust is the registrant for the domain name nowraradiology.com.au.

2.The parties’ competing interlocutory applications filed on 20 and 21 February 2020 are otherwise dismissed.

3.The parties are to bear their own costs on the interlocutory applications.

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


REASONS FOR JUDGMENT
(Revised from transcript)

STEWART J:

On the competing interlocutory applications

  1. By consent orders on 2 October 2019, I appointed Dr Allan Watt, a digital forensic expert, as referee to answer a series of questions that had been identified by the parties as being useful to pose to Dr Watt.  There were about 10 questions on behalf of each side of the case.  I shall come to the questions shortly.

  2. Dr Watt reported by way of an expert report that was filed on 28 January 2020.  The applicants move on an application to adopt Dr Watt’s report and the respondent moves…

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Details
Case
[2020] FCA 731
Decision Date

CaseChat Overview and Summary

The case of Nowra Radiology Pty Ltd v Macintosh was before the Federal Court, where the primary dispute was regarding the adoption or rejection of a referee report. The parties were Nowra Radiology Pty Ltd, the plaintiff, and Macintosh, the defendant. They were in conflict over the adoption of a referee report prepared by Dr Allan Watt, dated 10 December 2019. The plaintiff sought the adoption of the report, while the defendant opposed its adoption. The central legal issues were whether the adoption of the referee report was consistent with the overarching purpose of the Federal Court of Australia Act 1976, and whether the findings in the report were relevant to the dispute, given the expertise of the referee and the rational basis of the findings.

The court examined the relevant principles governing the adoption of referee reports, particularly under sections 37M and 37N of the Federal Court of Australia Act 1976. It was crucial to determine if Dr Watt had the requisite expertise and whether his findings were rationally based. The court found that while the referee report contained some findings that were not directly relevant to the issues in dispute, there were other findings that were pertinent. However, the court decided to adopt the referee report with specific variations. It deleted certain paragraphs that were deemed irrelevant and made amendments to reflect accurate information regarding the domain name registrants. The court also dismissed the parties' competing interlocutory applications and ordered that each party bear their own costs.

The final orders of the court were that the referee report of Dr Allan Watt, dated 10 December 2019, was adopted in accordance with rule 28.67(1) of the Federal Court Rules 2011, with specified variations. These variations included the deletion of certain paragraphs and corrections to the information about the domain name registrants. The court dismissed the competing interlocutory applications and ruled that each party was to bear their own costs. The entry of these orders was governed by Rule 39.32 of the Federal Court Rules 2011.

Orders

Orders of the court

1. The report of Dr Allan Watt as referee dated 10 December 2019 is adopted pursuant to rule 28.67(1) of the Federal Court Rules 2011 (Cth) subject to the following variations:

1.1. Paragraphs [4.5.2] on page 8, [4.5.3] on page 8, [4.5.4] on page 9 and [14.16] on page 11 are deleted;

1.2. Paragraphs [4.2.1] on page 7 and [4.12] on page 10 are to reflect that Peter Macintosh is the registrant for the domain name nowraradiology.com and the Fidelity Trust is the registrant for the domain name nowraradiology.com.au.

2. The parties’ competing interlocutory applications filed on 20 and 21 February 2020 are otherwise dismissed.

3. The parties are to bear their own costs on the interlocutory applications.

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

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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