Joshan v Pizza Pan Group Pty Ltd [2021] NSWCA 219

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Joshan v Pizza Pan Group Pty Ltd [2021] NSWCA 219 Hearing dates: 25 August 2021 Date of orders: 14 September 2021 Decision date: 14 September 2021 Before: Bell P at [1]; Gleeson JA at [117]; McCallum JA at [118] Decision: 1. Appeal allowed. 2. Set aside the orders of Weber SC DCJ of 19 February 2021. 3. Direct that the solicitors for the Applicants serve a copy of these reasons by email on the solicitors for all cross-defendants who have entered an appearance in proceedings 2020/00230657 on or before 15 September 2021. 4. Direct that any cross-defendant who or which has entered an appearance file any written submission and evidence in the event that he, she or it opposes a stay of proceedings on or before 29 September 2021. 5. In the event that no such submissions are made, order that the proceedings 2020/00230657 be stayed and the Respondent pay the Applicants' costs of the appeal and the stay application before the primary judge. 6. In the event that any of the cross-defendants oppose a stay of proceedings, the Applicants are to file and serve any submissions in response by 5 October 2021 with the issue of whether or not the proceedings 2020/00230657 are to be stayed and any outstanding question of costs to be determined on the papers. Catchwords: CIVIL PROCEDURE – stay of proceedings – under the Service and Execution of Process Act 1992 (Cth) – where District Court of New South Wales was court of issue – whether South Australian court was "the appropriate court" to determine all the matters in dispute between the parties – where the identification of all the matters in issue between the parties is a prerequisite to resolving the question of what is "the appropriate court" CONSUMER LAW – industry codes – Franchising Code of Conduct – what constitutes a "franchise agreement" – whether a deed of guarantee is a "franchise agreement" as defined in cl 5 of the Code – where the guarantors assumed certain obligations of the franchisee and covenanted to be personally bound by the terms and conditions of the Franchise Agreement pursuant to the deed of guarantee – where the deed of guarantee conferred no right to carry on the business of offering, supplying or distributing goods or services as a franchisee CONSUMER LAW – industry codes – Franchising Code of Conduct, cl 21(2)(a) – where franchise agreement must not contain a clause that requires a party to the agreement to bring an action or proceedings in relation to a dispute under the agreement in any State or Territory outside that in which the franchised business is based – whether franchise agreement may contain a non-exclusive jurisdiction clause – where the prohibition refers to a clause that "requires" the parties to litigate in a particular forum EVIDENCE – standard of proof – civil cases – application for stay of proceedings under the Service and Execution of Process Act 1992 (Cth) – whether applicant bears onus of proof – whether standard of proof is on the balance of probabilities – where primary judge applied the standard of a "clear and compelling basis" for the relief sought – whether Rick Cobby Pty Ltd v Podesta Transport Pty Ltd (1997) 139 FLR 54 was decided correctly PRIVATE INTERNATIONAL LAW – jurisdiction – non-exercise of jurisdiction – stays under the Service and Execution of Process Act 1992 (Cth) – jurisdiction clauses – non-exclusive jurisdiction clauses – whether excessive reliance placed upon non-exclusive jurisdiction clause in favour of New South Wales – where s 20(4)(d) of the Service and Execution of Process Act 1992 (Cth) requires the court of issue to take into account "any agreement between the parties about the court or place in which the proceeding should be instituted" – whether dictum in Asciano Services Pty Ltd v Australian Rail Track Corp Ltd [2008] NSWSC 652 at [18] was correct PRIVATE INTERNATIONAL LAW – jurisdiction – non-exercise of jurisdiction – stays under the Service and Execution of Process Act 1992 (Cth) – standard of proof – whether applicant bears onus of proof – whether standard of proof is on the balance of probabilities – where primary judge applied the standard of a "clear and compelling basis" for the relief sought – whether Rick Cobby Pty Ltd v Podesta Transport Pty Ltd (1997) 139 FLR 54 was decided correctly PRIVATE INTERNATIONAL LAW – jurisdiction – non-exercise of jurisdiction – stays under the Service and Execution of Process Act 1992 (Cth) – where District Court of New South Wales was court of issue – whether South Australian court was "the appropriate court" to determine all the matters in issue between the parties – where the identification of all the matters in issue between the parties is a prerequisite to resolving the question of what is "the appropriate court" WORDS AND PHRASES – "franchise agreement" – Competition and Consumer (Industry Codes­­––Franchising) Regulation 2014 (Cth) sch 1 cl 5 Legislation Cited: Common Law Procedure Act 1853 (NSW) (17 Vict No 21) ss 16, 17 Commonwealth Constitution s 51(xxiv) Competition and Consumer (Industry Codes—Franchising) Regulation 2014 (Cth) sch 1 Evidence Act 1995 (Cth) s 135 Insurance Contracts Act 1984 (Cth) Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth) Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW) s 5(2)(b)(iii) Restraints of Trade Act 1976 (NSW) Service and Execution of Process Act 1901 (Cth) ss 3(b), 4 Service and Execution of Process Act 1992 (Cth) ss 5, 12, 15(1), 16, 20 Service and Execution of Process Regulations 2018 (Cth) Uniform Civil Rules 2020 (SA) sch 1 div 2 Uniform Civil Procedure Rules 2005 (NSW) r 11.4, sch 6 Cases Cited: Ace Insurance SA NV v Zurich Insurance Co [2001] 1 Lloyd's Rep 618; [2001] EWCA Civ 173 Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc (1981) 148 CLR 170; [1981] HCA 39 Adelaide Concrete Cutting & Drilling Pty Ltd v Marino [2021] NSWSC 1034 Agar v Hyde (2000) 201 CLR 552; [2000] HCA 41 Akai Pty Ltd v People's Insurance Co Ltd (1996) 188 CLR 418; [1996] HCA 39 Ant & Ballast Pty Ltd v City of Greater Geelong [2019] NSWSC 188 Aqua Max Water Filtration Solutions Pty Ltd v Hurtado [2017] SASC 165 Asciano Services Pty Ltd v Australian Rail Track Corp Ltd [2008] NSWSC 652 Australian Competition and Consumer Commission v Valve Corporation (No 3) (2016) 337 ALR 647; [2016] FCA 196 Australian Health & Nutrition Association Ltd v Hive Marketing Group Pty Ltd (2019) 99 NSWLR 419; [2019] NSWCA 61 Bankinvest AG v Seabrook (1988) 14 NSWLR 711 BHP Billiton Ltd v Schultz (2004) 221 CLR 400; [2004] HCA 61 Boart Longyear Pty Ltd v Coburn (Magistrate) (unreported, Supreme Court of Victoria, 18 June 1998) BP plc v Aon Ltd [2006] 1 Lloyd's Rep 549; [2005] EWHC (Comm) 2554 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Chubb Insurance Company of Australia Ltd v Moore (2013) 302 ALR 101; [2013] NSWCA 212 Community First Inc v Job Futures Ltd [2008] FCA 1265 Compagnie des Messageries Maritimes v Wilson (1954) 94 CLR 577; [1954] HCA 62 CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345; [1997] HCA 33 Dalton v New South Wales Crime Commission (2006) 227 CLR 490; [2006] HCA 17 Equus Financial Services Ltd v Francis Xavier LAH (unreported, Full Court of the Supreme Court of Victoria, 8 September 1994) Finstro Securities Pty Ltd v Gosatti [2021] NSWSC 635 Freedom Foods Pty Ltd v Blue Diamond Growers (2021) 390 ALR 647; [2021] FCAFC 86 Fuji Xerox Australia Pty Ltd v Documents on Call Pty Ltd [2018] NSWSC 1862 Garsec Pty Ltd v His Majesty The Sultan of Brunei (2008) 250 ALR 682; [2008] NSWCA 211 Giddy v Rocky Castle Finance Pty Ltd [2016] NSWSC 314 Global Partners Fund Ltd v Babcock & Brown Ltd (in liq) (2010) 267 ALR 144; [2010] NSWSC 270 Global Partners Fund Ltd v Babcock & Brown Ltd (in liq) (2010) 79 ACSR 383; [2010] NSWCA 196 Goh, Ambrosini & Hollingsworth v BPH Energy Limited & Grandbridge Limited [2019] NSWDC 559 Gosper v Sawyer (1985) 160 CLR 548; [1985] HCA 19 Henry v Henry (1996) 185 CLR 571; [1996] HCA 51 Huddart Parker Ltd v The Ship "Mill Hill" (1950) 81 CLR 502; [1950] HCA 43 Hyde v Agar (1998) 45 NSWLR 487 Inghams Enterprises Pty Ltd v Hannigan (2020) 379 ALR 196; [2020] NSWCA 82 James Hardie & Coy Pty Ltd v Barry (2000) 50 NSWLR 357; [2000] NSWCA 353 Jardine Lloyd Thompson Pty Ltd v Puri [2016] NSWSC 150 John Pfeiffer Pty Ltd v Rogerson (2000) 203 CLR 503; [2000] HCA 36 Julia Farr Services Inc v Hayes [2003] NSWCA 37; (2003) 25 NSWCCR 138 Lange v Australian Broadcasting Corporation (1997) 189 CLR 520; [1997] HCA 25 Laurie v Carroll (1958) 98 CLR 310; [1958] HCA 4 Luke v Mayoh (1921) 29 CLR 435; [1921] HCA 39 McGlew v New South Wales Malting Co Ltd (1918) 25 CLR 416; [1918] HCA 72 McGregor v Potts (2005) 68 NSWLR 109; [2005] NSWSC 1098 Minister for Immigration and Multicultural and Indigenous Affairs v B (2004) 219 CLR 365; [2004] HCA 20 Monash IVF Pty Ltd v Burmeister (No 2) [2017] NSWSC 903 Nalos v Watpac Construction [2012] NSWSC 1371 Nelson v Nelson (1995) 184 CLR 538; [1995] HCA 25 News Corporation Ltd v Lenfest Communications Inc (1996) 40 NSWLR 250 Oceanic Sun Line Special Shipping Co Inc v Fay (1988) 165 CLR 197; [1988] HCA 32 Patrick Badges Pty Ltd v Commonwealth of Australia [2002] NSWSC 221 Puttick v Tenon Ltd (2008) 238 CLR 265; [2008] HCA 54 Rafferty v Madgwicks (2012) 203 FCR 1; [2012] FCAFC 37 Re Featherstone Resources Ltd; Tetley v Weston (2014) 101 ACSR 394; [2014] NSWSC 1139 Re HIH Insurance Ltd (in liq) (2014) 104 ACSR 240; [2014] NSWSC 545 Re the Will of Gilbert (dec) (1946) 46 SR (NSW) 318 Regie Nationale des Usines Renault SA v Zhang (2002) 210 CLR 491; [2002] HCA 10 Rick Cobby Pty Ltd v Podesta Transport Pty Ltd (1997) 139 FLR 54 Royal Bank of Canada v Coöperatieve Centrale Raiffeisen-Boerenleenbank BA [2004] 1 Lloyd's Rep 471; [2004] EWCA Civ 7 Siskina (Cargo Owners) v Distos Compania Naviera SA [1979] AC 210 Smart Electrical and Power Services Pty Ltd v Bednal [2004] NSWSC 742 Spiliada Maritime Corp v Cansulex Ltd [1987] AC 460 St George Bank Ltd v McTaggart [2003] 2 Qd R 568; [2003] QCA 59 Taurus Funds Management Pty Ltd v Aurox Resources Ltd [2010] NSWSC 1223 Techtronic Industries Pty Ltd v Mitre 10 Australia Ltd [2008] NSWSC 740 Toyota Material Handling Australia Pty Ltd v Cardboard Collection Service Pty Ltd [2020] NSWDC 667 Voth v Manildra Flour Mills Pty Ltd (1990) 171 CLR 538; [1990] HCA 55 Wicomm Pty Ltd v CJ-Milne Solutions Pty Ltd [2015] NSWDC 413 Texts Cited: A Briggs, Agreements on Jurisdiction and Choice of Law (2008, Oxford University Press) A S Bell, "The Natural Forum Revisited" in A Dickinson and E Peel (eds), A Conflict of Laws Companion: Essays in Honour of Adrian Briggs (2021, Oxford University Press) J Edelman, "The Equity of the Statute" in D Klimchuk, I Samet, and H E Smith (eds), Philosophical Foundations of The Law of Equity (2020, Oxford University Press) M Davies et al, Nygh's Conflict of Laws in Australia (10th ed, 2019, LexisNexis Butterworths) M J Leeming, Authority to Decide: The Law of Jurisdiction in Australia (2nd ed, 2020, Federation Press) Category: Principal judgment Parties: Ranjodh Singh Joshan (First Applicant) Jasbir Kaur Joshan (Second Applicant) Pizza Pan Group Pty Ltd (Respondent) Representation: Counsel: