Orio Holdings Pty Ltd v International Resources Pty Ltd

[2012] SASC 179

Supreme Court of South Australia

(Civil)

ORIO HOLDINGS PTY LTD v INTERNATIONAL RESOURCES PTY LTD

[2012] SASC 179

Reasons for Rulings of The Honourable Justice Gray (ex tempore)

5 October 2012

PROCEDURE - SUPREME COURT PROCEDURE - SOUTH AUSTRALIA - JURISDICTION AND GENERALLY

PROCEDURE - JUDGMENTS AND ORDERS - IN GENERAL - STATEMENT OF REASONS FOR DECISION

Contractual dispute between the parties was resolved by mediation - parties reached a settlement agreement - Orio Holdings Pty Ltd sought orders to enable the agreement to be performed - International Resources Pty Ltd sought orders that the agreement be set aside or declared void - no application made by defendant for payment of monies out of the suitors fund - both parties appeared without legal representation - whether the orders sought by International Resources should be granted.

Held: Application of International Resources misconceived - order that the monies paid into the suitors fund in this proceeding in the amount of $20 000.00 be paid to International Resources and that the balance of the funds held in the suitors fund be paid to Orio Holdings.

ORIO HOLDINGS PTY LTD v INTERNATIONAL RESOURCES PTY LTD
[2012] SASC 179

Civil

Gray J.

1. This proceeding has a long history.  It has its genesis in a contractual dispute.  That dispute was resolved by mediation in the Adelaide Magistrates Court.  The plaintiff, Orio Holdings Pty Ltd, has sought orders to enable the agreement to be performed.  The defendant, International Resources Pty Ltd, has sought orders that the agreement be set aside or declared void.  Both parties have appeared without legal representation. 

2. On 19 December 2011, the parties reached a settlement.  As indicated above, this followed a mediation conducted by an officer of the Adelaide Magistrates Court.  The essential terms of the agreement are as follows:

   -That Orio Holdings pay to International Resources the sum of $20 000.00.

   -International Resources are to issue a taxation invoice for $20 000.00, inclusive of GST.

   -The above is in full and final settlement of any claim whatsoever by International Resources against Orio Holdings. 

   -The payment of the $20 000.00 is to be effected by the parties making application in the Supreme Court for the release of moneys held on trust in the following manner: $20 000.00 to be paid to International Resources and the balance to be paid to Orio Holdings.

   -Settlement was to be completed by no later than 15 January 2012.

3. On 27 January 2012, Orio Holdings made application to this Court for orders and directions to enable settlement of the agreement to occur by payment from the suitors fund of $20 000.00 to International Resources and by payment of the balance of the funds to Orio Holdings.  This application is yet to be dealt with.  It does not appear from the file that International Resources has made any application for payment of monies out of the suitors fund. 

4. It would appear from the Court file that neither party made an application prior to 15 January 2012 for payment from the suitors fund.

5. On 4 October 2012, International Resources filed an application in this Court seeking to set aside the agreement reached between the parties on 19 December 2011.  An affidavit filed by the director and secretary of International Resources asserts that Orio Holdings has not complied with the terms of the agreement and that International Resources is yet to receive the $20 000.00. 

6. The application of International Resources is misconceived.  The agreement between the parties required, as set out above, “the payment to be effected by the parties making application to the Supreme Court for the release of monies”.  It does not appear that International Resources either made an application or joined in the application made by Orio Holdings.  In these circumstances, the suggestion that there has been a breach of the contract by Orio Holdings such as to warrant a setting aside of the agreement or a declaration that the agreement is void cannot be sustained. 

7. Having regard to the foregoing, I order that the monies paid into the suitors fund in this proceeding in the amount of $20 000.00 be paid to International Resources and that the balance of the funds held in the suitors fund be paid to Orio Holdings.  Minutes of order will need to be prepared to enable these payments to be made and I direct that International Resources prepare those minutes.