Zhang v Trinity Law Pty Ltd

Case [2022] ACTSC 264


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Zhang v Trinity Law Pty Ltd

Citation:

[2022] ACTSC 264

Hearing Date:

Determined on the papers

DecisionDate:

29 September 2022

Before:

Elkaim J

Decision:

(1) Order that the application be decided on the papers.

(2) Make Orders 1 and 2 in the application in proceeding filed on 9 September 2022.  

Catchwords:

PRACTICE AND PROCEDURE – CROSS-VESTING LEGISLATION – Application to transfer proceeding to the Supreme Court of New South Wales in accordance with the Jurisdiction of Courts (Cross-vesting) Act 1993 (ACT)

Legislation Cited:

Jurisdiction of Courts (Cross-Vesting) Act 1993 (ACT) s 5

Cases Cited:

EBA v Commonwealth of Australia [2021] ACTSC 186

Parties:

Xuewen Zhang (First Plaintiff)

Huaking Investments Pty Ltd (Second Plaintiff)

Trinity Law Pty Ltd (First Defendant)

Mark Poretti (Second Defendant)

Representation:

Solicitors

Juris Cor Legal (Plaintiffs)

Sparke Helmore Lawyers (Defendants)

File Number:

SC 232 of 2021

Elkaim J

  1. The two defendants in this matter filed an application in proceeding on 9 September 2022 seeking an order that, pursuant to the ACT cross-vesting legislation, the proceedings be determined in the Supreme Court of New South Wales.

  1. The application is supported by an affidavit of Mr John Coorey sworn on 8 September 2022. The two plaintiffs in the substantive proceedings consent to the application. All parties wish the matter to be determined on the papers.

  1. Section 5(2)(b)(iii) of the Jurisdiction of Courts (Cross-Vesting) Act 1993 (ACT) provides that if it is “in the interests of justice that the relevant proceeding be determined by the Supreme Court of another State or Territory…… the first court shall transfer the relevant proceeding to that other Supreme Court”.

  1. The only issue for me to decide is if the transfer is in the interests of justice. In EBA v Commonwealth of Australia [2021] ACTSC 186 McWilliam AsJ said, at [13] that

…..in deciding what is more appropriate in the interests of justice, the approach the Court takes is a “nuts and bolts” case management decision: BHP v Schultz at [13] per the plurality, quoting Bankinvest AG v Seabrook (1988) 14 NSWLR 711, 713- 714 per Street CJ. The Court looks to “what would be the best order to make to facilitate the trial of the litigation”: Hayward v Barratt [2000] NSWSC 708 at [2], quoted in Bateman at [70(k)].

  1. In his affidavit, at [5] Mr Coorey sets out the basis for the application:

5.Broadly speaking, the application is made on the basis that:

a.  the plaintiffs and the defendants consent to the application;

b.  the substantive law to be applied or the assessment of damages are not likely to vary according to the place of trial;

c.  the plaintiffs have no connection with the ACT: the first plaintiff, Mr Zhang, lives and works in China and the second plaintiff does not trade or have any other business in the ACT or elsewhere;

d.  the plaintiffs’ and defendants’ address for service is c/- Sydney-based solicitors and Sydney-based counsel are likely to be briefed by both parties.

e. the majority of lay and expert witnesses are likely to be based outside the ACT: the only lay witness located in the ACT who is likely to give evidence, is the second defendant;

f.   these Proceedings are at a very early stage, so no prejudice will be caused to any party if the volume is changed to the NSW Supreme Court;

g.  the parties are likely to incur additional costs if the Proceedings are heard and determined by this Court;

h.  the defendants practise law in the ACT. The first defendant is an incorporated legal practice and the second defendant is a director of the first defendant. The defendants are concerned about adverse reputational consequences if these Proceedings are before this Court and otherwise determined in the ACT.

  1. Some of the reasons given by Mr Coorey are more relevant than others. For example, the consent of the parties is relevant but not determinative. More important, I think, are the early stage of the proceedings, the likelihood that the legal representatives will be based in Sydney and, most significantly, the “adverse reputational consequences if these Proceedings are before this Court and otherwise determined in the ACT”.

  1. Having considered Mr Coorey’s affidavit in its entirety, and noting there is no evidence to suggest a contrary conclusion, I am satisfied that it is in the interests of justice that the proceedings be transferred to the Supreme Court of New South Wales.

  1. Accordingly I order that the matter be dealt with on the papers and then make Orders 1 and 2 in the application in proceeding filed on 9 September 2022.

I certify that the preceding eight [8] numbered paragraphs are a true copy of the Reasons for  Judgment of his Honour Justice Elkaim.

Associate:

Date:

Details
AGLC
Zhang v Trinity Law Pty Ltd [2022] ACTSC 264
Case
[2022] ACTSC 264
Decision Date

CaseChat Overview and Summary

In this case, Xuewen Zhang and Huaking Investments Pty Ltd, as plaintiffs, brought proceedings against Trinity Law Pty Ltd and Mark Poretti, as defendants. The dispute involves an application by the defendants to transfer the proceedings from the Supreme Court of the Australian Capital Territory (ACT) to the Supreme Court of New South Wales (NSW). The defendants filed the application on 9 September 2022, and all parties agreed that the matter should be decided on the papers. The court was required to determine whether transferring the proceedings to the NSW Supreme Court was in the interests of justice, as provided for by section 5(2)(b)(iii) of the Jurisdiction of Courts (Cross-Vesting) Act 1993 (ACT).

Justice Elkaim considered the affidavit of John Coorey, which outlined several factors supporting the transfer. These factors included the consent of all parties, the similarity of substantive law and potential damages regardless of the trial location, the plaintiffs' lack of connection with the ACT, and the anticipated costs and reputational risks for the defendants if the proceedings were determined in the ACT. The court emphasised the early stage of the proceedings and the likelihood that the legal representatives would be based in Sydney. Elkaim J found the adverse reputational consequences for the defendants if the proceedings were determined in the ACT to be particularly significant. The court concluded that it was in the interests of justice to transfer the proceedings to the NSW Supreme Court.

As a result, Justice Elkaim ordered that the application be decided on the papers and made Orders 1 and 2 in the application in proceeding filed on 9 September 2022. These orders effectively transferred the proceedings to the NSW Supreme Court.

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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