Keynes v Rural Directions Pty Ltd (No 2) [2009] FCA 567

FEDERAL COURT OF AUSTRALIA

Keynes v Rural Directions Pty Ltd (No 2) [2009] FCA 567

CORPORATIONS – financial products – derivatives – applications for summary judgment on basis of whether forward contracts for supply of grain are financial products or derivatives – whether arrangement permits seller's obligations to be wholly settled by cash or set-off rather than delivery – whether usual market practice permits seller's obligations to be closed out by matching up of arrangement with another arrangement of same kind under which seller has offsetting obligations to buy – whether value of arrangement varies by reference to value of something else Held: summary judgment entered in favour of defendants in relation to forward contracts – forward contracts not derivatives or financial products. Acts Interpretation Act 1901 (Cth) s 15AB Corporations Act 2001 (Cth) ss 761A, 761B, 761D, 761G, 762A, 763A, 763B, 763C, 763D, 763E, 764A, 765A, 913B, 944A, 946A, 947A, 947B, 947C, 1012B, 1013A, 1013B, 1013C, 1013D, 1013E, 1013F, 1022B, 1022C Federal Court of Australia Act 1976 (Cth) s 31A Sale of Goods Act 1895 (SA) s 50, s 51 Corporations Regulations 2001 (Cth) reg 7.1.04, 7.1.22 Federal Court Rules O 11 r 16 Bartlett v Swan Television & Radio Broadcasters Pty Ltd [1995] ATPR 41-434 cited Boston Commercial Services Pty Ltd v GE Capital Finance Australasia Pty Ltd (2006) 236 ALR 720 referred to Coulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR 460 discussed Jefferson Ford Pty Ltd v Ford Motor Company of Australia Ltd (2008) 167 FCR 372 referred to Keynes v Rural Directions Pty Ltd [2008] FCA 1964 referred to Luna Park (NSW) Ltd v Tramways Advertising Pty Ltd (1938) 61 CLR 286 cited Spiteri v Nine Network Australia Pty Ltd [2008] FCA 905 referred to TIMOTHY DOUGLAS KEYNES, ELIZABETH JANE KEYNES, CHRISTOPHER JOHN MCCOURT and ROBERT NEVILLE KEYNES v RURAL DIRECTIONS PTY LTD, GRAIN POOL PTY LTD, ABB GRAIN LTD and GLENCORE GRAIN PTY LTD