QNI Metals Pty Ltd v Vannin Capital Operations Ltd

QNI Metals Pty Ltd and QNI Mining Pty Ltd sought to set aside a settlement deed and a consent order on the basis that the settlement deed and consent order required them to indemnify Vannin Capital Operations Ltd against any liability to QNI Metals Pty Ltd in relation to a claim in another proceeding. QNI Metals Pty Ltd and QNI Mining Pty Ltd submitted that the settlement deed and consent order were breached when Vannin Capital Operations Ltd allowed its counsel in the first proceeding to act for QNI Metals Pty Ltd in the second proceeding, and in so doing, counsel must have disclosed confidential information held by Vannin Capital Operations Ltd to QNI Metals Pty Ltd. QNI Metals Pty Ltd and QNI Mining Pty Ltd sought an injunction requiring the respondents to depose as to their knowledge of any information that passed between themselves and counsel relating to the subject matter of the proceeding. The court dismissed QNI Metals Pty Ltd and QNI Mining Pty Ltd’s application.

The court held that QNI Metals Pty Ltd and QNI Mining Pty Ltd were not subrogated to the rights of Vannin Capital Operations Ltd in relation to the potential disclosure of its confidential information to QNI Metals Pty Ltd. As QNI Metals Pty Ltd and QNI Mining Pty Ltd did not establish a sufficient evidentiary basis to justify ordering preliminary discovery in aid of alleged legal rights, the application for an injunction was dismissed. The court also held that QNI Metals Pty Ltd and QNI Mining Pty Ltd were unable to establish that any information not already public or not already disclosed had been provided to QNI Metals Pty Ltd by officers of the court. Accordingly, it was not necessary for the court to exercise its inherent jurisdiction to prevent an abuse of process.

The applicants’ originating application is dismissed. The court will hear the parties on costs.