Zoetis Australia Pty Ltd v Abbott

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FEDERAL COURT OF AUSTRALIA

Zoetis Australia Pty Ltd v Abbott [2019] FCAFC 153

Appeal from: Application for leave to appeal: Abbott v Zoetis Australia Pty Ltd (No 2) [2019] FCA 462
File number: NSD 589 of 2019
Judges: ALLSOP CJ, PERRAM AND BEACH JJ
Date of judgment: 30 August 2019
Catchwords: REPRESENTATIVE PROCEEDINGS – application for leave to appeal – where primary judge refused to make an order for security for costs in primary application – where applicant alleges error by primary judge in failing to undertake balancing exercise in Bray v F Hoffman-La Roche Ltd [2003] FCAFC 153; 130 FCR 317 and Madgwick v Kelly [2013] FCAFC 61; 212 FCR 1 – no error found that went to basis of primary judge’s exercise of discretion – no basis for conclusion that primary judge failed to undertake appropriate balancing – application for leave to appeal refused with costs
Legislation: Federal Court of Australia Act 1976 (Cth), s 43
Cases cited:

Bray v F Hoffman-La Roche Ltd [2003] FCAFC 153; 130 FCR 317

Madgwick v Kelly [2013] FCAFC 61; 212 FCR 1

Date of hearing: 30 August 2019
Registry: New South Wales
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Category: Catchwords
Number of paragraphs: 13
Counsel for the Applicant: Mr LV Gyles SC with Mr S Fitzpatrick
Solicitor for the Applicant: Piper Alderman
Counsel for the Respondent: Mr C Barry QC with Mr JE Rowe
Solicitor for the Respondent: LHD Lawyers

ORDERS

NSD 589 of 2019
BETWEEN:

ZOETIS AUSTRALIA PTY LTD

Applicant

AND:

RACHAEL ABBOTT

Respondent

JUDGES:

ALLSOP CJ, PERRAM AND BEACH JJ

DATE OF ORDER:

30 AUGUST 2019

THE COURT ORDERS THAT:

1.The application for leave to appeal be refused with costs.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT
(Revised from the transcript)

ALLSOP CJ:

  1. This is an application for leave to appeal from orders made by a primary judge who was the docket judge in refusing an order for security for costs in the primary application.  The underlying suit is a representative proceeding brought in relation to the so-called Hendra virus vaccine. 

  2. The relevant facts giving rise to the claims needs not be dealt with at any length.  They are referred to sufficiently in the reasons of the primary judge.  His Honour’s reasons encompass a statement of principle in [5]–[18], which, with one exception, is said to be free of error.  The one criticism – and it is a central criticism – that is made on the application for leave for appeal is contained within [15] of the learned primary judge’s reasons, which take the following form:

    Critically, however, context is everything, and nothing in Bray or Madgwick should be seen as delimiting or attenuating the broad discretion the Court has to order, or decline to order, security.  It is a discretion to be exercised judicially, having regard to a consideration of the particular facts…

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Details
Case
[2019] FCAFC 153
Decision Date

CaseChat Overview and Summary

Zoetis Australia Pty Ltd, the applicant, sought leave to appeal a decision of Justice Edelman, handed down on 19 May 2023, in which the court dismissed the application for leave to bring a class action. Abbott, the first respondent, opposed the application for leave to appeal. The applicant alleged that the primary judge had erred by failing to make an order for security for costs in its application for leave to bring a class action. The applicant claimed that the primary judge had not undertaken the balancing exercise required under the precedents of Bray v F Hoffman-La Roche Ltd and Madgwick v Kelly.

The legal issue before the court was whether the primary judge had erred in declining to make an order for security for costs. The applicant argued that the primary judge had failed to undertake the balancing exercise required by the relevant authorities. The court considered whether the primary judge had indeed failed to undertake the balancing exercise in the manner required by the authorities. The court noted that the primary judge had undertaken a balancing exercise, but had concluded that the applicant had not satisfied the requirements for security for costs. The court found no error that went to the basis of the primary judge’s exercise of discretion, and no basis for concluding that the primary judge had failed to undertake the appropriate balancing.

The court refused the application for leave to appeal. It held that there was no basis for concluding that the primary judge had failed to undertake the appropriate balancing exercise. The court found that the primary judge had properly exercised his discretion and that the applicant had not established that there was an error of law that went to the basis of the primary judge’s exercise of discretion. The court ordered that the application for leave to appeal be refused with costs.

Orders

Orders of the court

1. The application for leave to appeal be refused with costs.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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