ThyssenKrupp Materials Australia Pty Ltd v Sila Global Pty Ltd

The dispute before the Court was between ThyssenKrupp Materials Australia Pty Ltd, a company involved in the importation of goods, and Sila Global Pty Ltd, a company that provided customs clearance and transport and logistics services. The plaintiff alleged that the defendant had wrongfully claimed a lien over its property as security for a debt. The plaintiff sought to offset the defendant’s claims against its own claim for unliquidated damages. The Court was asked to determine whether it should make an order under section 74 of the Supreme Court Act 1970 (NSW) in relation to this matter.

The legal issues that the Court had to address included whether the defendant had a valid common law lien over the plaintiff's property and whether the plaintiff was entitled to unilaterally offset the defendant's claims against its own claim for unliquidated damages. The Court also had to consider whether it was appropriate to make an order under section 74 of the Supreme Court Act 1970 (NSW) in the context of the COVID-19 pandemic, which had caused significant disruption to the chain of supply through ports for the importation of goods.

The Court found that the defendant did not have a valid common law lien over the plaintiff's property as it had not satisfied the requirements for such a lien to exist. The Court also held that the plaintiff was not entitled to unilaterally offset the defendant's claims against its own claim for unliquidated damages. However, the Court considered that it was appropriate to make an order under section 74 of the Supreme Court Act 1970 (NSW) to facilitate the resolution of the dispute in the context of the COVID-19 pandemic. The Court made an order that the plaintiff's claim for unliquidated damages was to be assessed and determined by the Court, and that the defendant's claims were to be paid into Court pending the outcome of the assessment and determination.