Soufflet Beheer v AWB Limited

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FEDERAL COURT OF AUSTRALIA

Soufflet Beheer v AWB Limited [2004] FCA 518

practice and procedure – whether orders should be made to determine certain separate and preliminary questions – insufficiency of factual foundation – orders refused

Federal Court Rules, O 29 r 2

Reading Australia Pty Ltd v Australian Mutual Providete Society [1999] FCA 718 followed
Olbers Co Ltd v Commonwealth (No 3) [2003] FCA 651 followed
Bass v Permanent Trustee Co Ltd (1999) 198 CLR 334 applied
Carl Zeiss Stiftung v Herbert Smith & Co [1969] 1 Ch 93 referred to
Dunstan v Simmie & Co [1978] VR 669 referred to
CBS Productions Pty Ltd v O’Neill (1985) 1 NSWLR 601 referred to
Jacobson v Ross [1995] 1 VR 347 followed

SOUFFLET BEHEER v AWB LIMITED ACN 081 890 459
V 587 of 2002

KENNY J
28 APRIL 2004
MELBOURNE


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 587 OF 2002

BETWEEN:

SOUFFLET BEHEER
APPLICANT

AND:

AWB LIMITED ACN 081 890 459
RESPONDENT

JUDGE:

KENNY J

DATE OF ORDER:

28 APRIL 2004

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The parties’ application for orders, by consent, to be made in conformity with the minute of order filed on 18 March 2004 be refused.

2.The matter be fixed for further directions at 10 am on 12 May 2004.

3.There be no order as to the costs of today.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 587 OF 2002

BETWEEN:

SOUFFLET BEHEER
APPLICANT

AND:

AWB LIMITED ACN 081 890 459
RESPONDENT

JUDGE:

KENNY J

DATE:

28 APRIL 2004

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

introduction

  1. The parties to this proceeding seek orders under O 29 r 2 of the Federal Court Rules for the determination of separate and preliminary questions.  The proposed questions are:

    (a)whether, on about 3 August 1999, Soufflet USA and the respondent entered into a binding agreement whereby the respondent would pay to Soufflet USA the sum of US$421,380.22;

    (b)if so, whether, in the circumstances, the applicant is entitled to recover from the respondent the sum of US$421,380.22 for which it is liable under that agreement.

    On 18 March 2004, the parties submitted a minute of orders proposing this course.  Counsel for both parties attended Court this morning to support their proposal.  The applicant also relied on written submissions that were filed on 20 April 2004.

  2. Order 29 rules 1 and 2 provide:

    1.In this Order, question includes any question or issue in any proceeding, whether of fact or law or partly of fact and partly of law, and whether raised by pleadings, agreement of parties or otherwise.

    2.The Court may make orders for -

    (a)the decision of any question separately from any other question, whether before, at or after any trial or further trial in the proceedings; and

    (b)       the statement of a case and the question for decision.

    the proceeding

  3. By a…

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Details
Case
[2004] FCA 518
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Soufflet Beheer, the plaintiff, filed a claim against AWB Limited, the defendant, regarding a dispute over a charter party agreement. The plaintiff's claim was centred on the interpretation and enforcement of the charter-party and related agreements, with specific allegations about the compromise amount being disputed by the defendant. The defendant admitted to the existence of the charter-party and some of its written terms, but denied most of the plaintiff's allegations, especially those concerning the compromise amount.

The central legal issues in this case revolved around the interpretation of the charter-party and its terms, particularly the compromise amount, and the procedural matters concerning the regulation of the hearing and determination of the proceeding. The court had to consider whether certain questions could be determined separately from the main trial, which would be governed by the principles outlined in Reading Australia Pty Ltd v Australian Mutual Provident Society and Olbers Co Ltd v Commonwealth. These principles involve the conclusive or final decision on certain questions based on concrete and established facts to quell controversies between the parties. The court also had to weigh the factors that either supported or opposed the separate determination of these questions.

The court ruled that the parties' application for orders to be made in conformity with the minute of order filed on 18 March 2004 should be refused. The court found that the separate determination of the questions could potentially give rise to significant contested factual issues and overlap in evidence, which would not contribute to the saving of time and cost. The matter was fixed for further directions at 10 am on 12 May 2004, and no order was made as to the costs of the hearing.

Orders

Orders of the court

1. The parties’ application for orders, by consent, to be made in conformity with the minute of order filed on 18 March 2004 be refused.

2. The matter be fixed for further directions at 10 am on 12 May 2004.

3. There be no order as to the costs of today.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

KENNY J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: KENNY J

In summary, by its defence, the respondent admits the charter-party and such of its terms as were in writing, but otherwise denies virtually all of the substantive allegations in the further amended statement of claim. In particular, the respondent denies that part of the applicant’s case concerning the compromise amount.consideration Order 29 r 2 gives the Court wide powers to regulate the procedures for the hearing and determination of a proceeding. The principles that govern the circumstances in which an order of the kind presently sought by the parties may be made are set out in Reading Australia Pty Ltd v Australian Mutual Providete Society [1999] FCA 718 (“Reading Australia”) at [7] and [8] per Branson J. Her Honour’s statement of these principles was recently reiterated by French J in Olbers Co Ltd v Commonwealth (No 3) [2003] FCA 651 (“Olbers”) at [7]. In Reading Australia at [8], Branson J summarised the relevant principles as follows:The principles that govern the circumstances in which an order will be made under O 29 r 2 are relatively well established. They may be summarised as follows:(a)the term “question” in O 29 r 1 includes any question or issue of fact or law in a proceeding. The distinction in the rule between an “issue” and a “question” is the distinction between that which, when resolved, will result in an adjudication in favour of one party or the other, being an “issue”, and less decisive matters of dispute being “questions” (Landsal Pty Ltd (in liq) v REI Building Society (1993) 113 ALR 643 at 647);(b)a question can be the subject of an order for a separate decision under O 29 r 2 even though a decision on such a question will not determine any of the parties’ rights (Landsal Pty Ltd (in liq) v REI Building Society at 647);(c)however, the judicial determination of a question under O 29 r 2 must involve a conclusive or final decision based on concrete and established or agreed facts for the purpose of quelling a controversy between the parties (Bass v Permanent Trustee Co Ltd [1999] HCA 9 at para 45);(d)where the preliminary question is one of mixed fact and law, it is necessary that the question can be precisely formulated and that all of the facts that are on any fairly arguable view relevant to the determination of the question are ascertainable either as facts assumed to be correct for the purposes of the preliminary determination, or as agreed facts or as facts to be judicially determined (Jacobson v Ross [1995] 1 VR 337 at 341, referring to Nissan v Attorney-General [1970] AC 179 at 242-243 per Lord Pearson; Bass v Perpetual Trustee at para 53);(e)care must be taken in utilising the procedure provided for in O 29 r 1 to avoid the determination of issues not “ripe” for separate and preliminary determination. An issue may not be “ripe” for separate and preliminary determination in this sense where it is simply one of two or more alternative ways in which an applicant frames its case and determination of the issue would leave significant other issues unresolved (CBS Productions Pty Ltd v O’Neill [(1985) 1 NSWLR 601] per Kirby P at 606);(f)factors which tend to support the making of an order under O 29 r 2 include that the separate determination of the question may –(i)contribute to the saving of time and cost by substantially narrowing the issues for trial, or even lead to disposal of the action; or(ii)contribute to the settlement of the litigation (CBS Productions Pty Ltd v O’Neill (1985) 1 NSWLR 601 per Kirby P at 607).(g)factors which tell against the making of an order under O 29 r 2 include that the separate determination of the question may –(i)give rise to significant contested factual issues both at the time of the hearing of the preliminary question and at the time of trial (GMB Research & Development Pty Ltd v The Commonwealth [1997] FCA 934);(ii)result in significant overlap between the evidence adduced on the hearing of the separate question and at trial - possibly involving the calling of the same witnesses at both stages of the hearing of the proceeding (GMB Research & Development Pty Ltd v The Commonwealth; Arnold v Attorney-General for Victoria [1995] FCA 727). This factor will be of particular significance if the Court may be required to form a view as to the credibility of witnesses who may give evidence at both stages of the hearing of the proceeding; or(iii)prolong rather than shorten the litigation (GMB Research & Development Pty Ltd v The Commonwealth).