Seeley International Pty Ltd v Electra Air Conditioning BV [2008] FCA 29

FEDERAL COURT OF AUSTRALIA

Seeley International Pty Ltd v Electra Air Conditioning BV [2008] FCA 29

ARBITRATION – International Arbitration Act 1974 (Cth) – agreement provides for arbitration of disputes but also provides that the agreement does not prevent a party from applying for declaratory or injunctive relief in certain circumstances – dispute in those circumstances where declaratory relief sought – whether agreement obliged parties to submit the dispute to arbitration in those circumstances – construction of arbitration clause in agreement – application to stay proceedings refused CONTRACT – arbitration clause – whether arbitration clause obliged parties to submit to arbitration when declaratory or injunctive relief sought – construction of arbitration clause CONTRACT – application for summary judgment – agreement to supply goods on receipt of purchase orders – credit terms provided – supplier procured credit insurance but credit insurer withdrew – whether supplier entitled to decline to meet purchase orders PRACTICE AND PROCEDURE – summary judgment – whether appropriate to construe contract to determine whether supplier had no reasonable prospect of success in declining to meet purchase orders where supplier's credit insurance in respect of credit line given to purchaser had been withdrawn or reduced International Arbitration Act 1974 (Cth) ss 3, 7 Pt III, Sch 1 and Sch 2 Federal Court of Australia Act 1976 (Cth) s 31A Trade Practices Act 1974 (Cth) ss 52 and 87 Comandate Marine Corp v Pan Australia Shipping Pty Ltd (2006) 157 FCR 45 ABB Power Plants v Electricity Commission of New South Wales t/as Pacific Power (1995) 35 NSWLR 596 PMT Partners Pty Ltd v Australian National Parks and Wildlife Service (1995) 184 CLR 301 Elders CED Ltd v Dravo Corporation (1984) 59 ALR 206 Flakt Australia Ltd v Wilkins & Davies Construction Co Ltd (1979) 2 NSWLR 243 Francis Travel Marketing Pty Ltd v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160 Recyclers of Australia Pty Ltd v Hettinga Equipment Inc (2000) 100 FCR 420 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 at 62 Bahr v Nicolay (No 2) (1988) 164 CLR604 Chandris v Isbrandtsen-Moller Co Inc [1951] 1 KB 240 IBM Australia Ltd v National Distribution Services Ltd (1991) 22 NSWLR 466 Hi-Fert Pty Ltd v Kiukiang Maritime Carriers Inc (No 5) (1998) 90 FCR 1 Cufone v Cruse [2000] SASC 17 Cufone v Cruse (2000) 210 LSJS 238; [2000] SASC 304 Government Insurance Office of New South Wales v Atkinson-Leighton Joint Venture (1981) 146 CLR 206 Rolls and Son (Produce) Ltd v J Alastair McGregor & Co Pty Ltd (1973) 6 SASR 358 Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181 Corumo Holdings Pty Ltd v C Itoh Ltd (1991) 24 NSWLR 370 White Industries Aust Ltd v Commissioner of Taxation (2007) 160 FCR 298 Lawrenson Light Metal Die Casting Pty Ltd (in liq) v Cosmik Pty Ltd [2006] FCA 753 General Steel Industries Inc v Commissioner for Railways (New South Wales) (1964) 112 CLR 125 SEELEY INTERNATIONAL PTY LTD (ACN 054 687 035) v ELECTRA AIR CONDITIONING BV SAD 157 OF 2007