Sabre Corp Pty Ltd v Target Australia Pty Ltd

Case [1998] FCA 798


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

 NG 475  of 1998

BETWEEN:

SABRE CORPORATION PTY LIMITED
APPLICANT

AND:

TARGET AUSTRALIA PTY LIMITED
RESPONDENT

JUDGE:

TAMBERLIN J

DATE:

28 MAY 1998

PLACE:

SYDNEY

REASONS FOR JUDGMENT
Ex-tempore Judgment

This is an application for preliminary discovery.  It is brought under O 15A rr 3 and 6 of the Federal Court Rules.  The application is made on the basis that Target Australia Pty Limited (“Target”) is selling Joico and Fudge products, which are only supplied by Sabre Corporation Pty Ltd (“Sabre”) to a limited number of persons under an exclusive selling arrangement.  This is set out clearly in the affidavits before me.

There is affidavit evidence, filed by the solicitor secretary of Target, stating that Target obtained its supplies of Joico and Fudge products solely from Coshair Pty Limited (“Coshair”).  The evidence states that Target does not know the identity of persons from whom Coshair obtained the Joico and Fudge products supplied to Target. 

However, it seems to me that there may be documents in existence, by way of correspondence or diary notes or guarantees or other commercial arrangements between the parties, in relation to the supply of the goods from Coshair, which may indicate persons who stand behind Coshair and could give information in respect of suppliers or the source from which those products came. This may assist in the identification of an appropriate respondent, in addition to Coshair.

I am satisfied, having regard to the evidence, that this is a case where there is some person who has, or is likely to have, knowledge of facts tending to assist in the ascertainment of appropriate respondents.  I think it is appropriate that there should be preliminary discovery in order to assist the identification of respondents other than Coshair.  Accordingly, I will make order 1A, with the exclusion of the words "by or", so that it only covers purchases by delivery, sales, supply or offer to purchase to Target of the products which were specified.  I make order 1B but I will also exclude the words "by or" in paragraph B.  I will add a further order 3, that the discovery be made within 10 days from today.

Submissions have been made in relation to r 6 but given the conclusion which I have reached in relation to r 3, it is not necessary for me to consider the application of that rule in the present circumstances.

In this matter, I think it is appropriate that costs should follow the outcome.  The matter was fully contested.  The disclosure of Coshair, which was inadequate as a substitute for the documents, only came to light in the last couple of days and this proceedings no doubt, brought about this result.  Because the matter has been fully contested on the merits as substantially a separate issue in the proceedings, I consider that there ought be an award of costs in favour of the applicant on this matter.

I certify that this and the preceding two (2) pages are a true copy of the Reasons for Judgment herein of the Honourable Justice Tamberlin

Associate:

Dated:             28 May 1998

Counsel for the Applicant: Mr S Habib
Solicitor for the Applicant: Norton Smith & Co
Counsel for the Respondent: Mr Reynolds
Solicitor for the Respondent: Corrs Chambers Westgarth
Date of Hearing: 28 May 1998
Date of Judgment: 28 May 1998
Details
AGLC
Sabre Corp Pty Ltd v Target Australia Pty Ltd [1998] FCA 798
Case
[1998] FCA 798
Decision Date

CaseChat Overview and Summary

Sabre Corporation Pty Ltd sought preliminary discovery against Target Australia Pty Ltd, seeking information regarding the supply of Joico and Fudge products, which Sabre claimed were exclusively supplied to a limited number of persons. Sabre argued that Target was selling these products, which were sourced from Sabre through an exclusive arrangement. Target, however, stated that it obtained the products solely from Coshair Pty Limited, and it was unaware of the suppliers to Coshair. Sabre sought preliminary discovery to identify documents that could reveal information about Coshair's suppliers and the source of the products, aiming to ascertain whether Target was in breach of the exclusive supply arrangement.

The court needed to determine whether preliminary discovery was warranted under the Federal Court Rules. Specifically, the court had to decide if there were likely to be documents in Target's possession that could assist in identifying the suppliers behind Coshair and determining if Target was in breach of the exclusive supply arrangement with Sabre. The court had to balance the need for information to assist in identifying appropriate respondents with the potential prejudice to Target in disclosing such documents.

Justice Tamberlin found that there were likely documents in Target's possession that could provide information about the suppliers to Coshair, potentially revealing who was behind Coshair and whether Target was in breach of the exclusive supply arrangement. The court was satisfied that the potential benefit of obtaining such information outweighed the prejudice to Target. Consequently, the court made an order for preliminary discovery, excluding references to direct involvement by Target, and mandated the discovery within ten days. The court also determined that costs should follow the outcome, awarding costs to Sabre due to the fully contested nature of the application.

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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