Westgold Resources NL v St Barbara Mines Ltd

Westgold Resources NL (Westgold) commenced proceedings against St Barbara Mines Ltd (St Barbara) and Ronald Warren Woss (Woss) for alleged misleading or deceptive conduct and material non-disclosures. Westgold claimed that it had suffered loss and damage of $6.23 million or other losses and sought to recover these damages from the defendants together with interest. Westgold commenced the present action by a specially indorsed writ of summons against the first and second defendants issued on 20 October 2000. Westgold applied for an injunction to restrain St Barbara from continuing to retain its newly appointed solicitors, Messrs Tottle Christensen, or Mr Paul Blackman, a partner in that firm, in these proceedings or to act as counsel. The grounds of the application by the plaintiff, as outlined in written submissions and developed in oral argument, were that the present solicitors for St Barbara had received information and privileged communications confidential to the plaintiff as a result of previous dealings. Westgold submitted that to permit St Barbara to retain its present solicitors would, in the circumstances, create a perception of unfairness so that the Court should exercise its inherent power to control the conduct of its officers in order to preserve public confidence in the integrity and fairness of the administration of justice. Westgold also submitted that, because of his role in acting for Mr Roderick Smith, a former director and employee of the plaintiff, Mr Blackman, now a partner of Tottle Christensen, may not now act for St Barbara. The submission also involved the proposition that other partners at Tottle Christensen and its employees may not act in that capacity either. The court held that an order or injunction restraining Tottle Christensen and Mr Paul Blackman from acting further in these proceedings for St Barbara should issue. It may be unnecessary for a formal order to be made if the solicitors give an undertaking to cease acting immediately. It is to be emphasised that this relief is being ordered against the solicitors alone and not against the first defendant and that the solicitors have indicated that they will comply even if not formally joined. If any further proceedings are likely to arise from this decision, whether by way of appeal or otherwise, it may be desirable for the firm Tottle Christensen to be made a party to these proceedings and, if necessary, the court will entertain any application for their joinder if that is sought.