Karadag v Samkara Holdings Pty Ltd [2022] NSWSC 380

Supreme Court New South Wales

Medium Neutral Citation: Karadag v Samkara Holdings Pty Ltd [2022] NSWSC 380 Hearing dates: 15 October 2021 Decision date: 05 April 2022 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Pursuant to s 8 of the Commercial Arbitration Act and the inherent jurisdiction of the Court, order that the proceedings, so far as the claims by the plaintiffs against the second and third defendants, be stayed pending referral of the matter to arbitration pursuant to cl 38 of the Deed of Settlement and Release. 2. Pending completion of the arbitration the subject of Order 1, stay the present proceedings against the remaining defendants. 3. Order the plaintiff to pay the second and third defendants' costs of the stay application. Catchwords: CIVIL PROCEDURE — Arbitration — Application for stay of proceedings pursuant to s 8 of the Commercial Arbitration Act 2010 (NSW) — Where Court proceedings involve parties not party to the arbitration agreement, and claims argued to fall outside the scope of the agreement Legislation Cited: ACICA's Expedited Arbitration Rules, r 9.1 Civil Procedure Act 2005 (NSW), ss 56-60 Commercial Arbitration Act 2010 (NSW), ss 2, 5, 8, 9, 17J, 27, 27A Conveyancing Act 1919 (NSW), s 37A Corporations Act 2001 (Cth), ss 236, 237, 467(4) International Arbitration Act 1974 (Cth) Cases Cited: Australian Heath & Nutrition Association Ltd v Hive Marketing Group Pty Ltd (2019) 99 NSWLR 419; [2019] NSWCA 61 Barnes v Addy (1874) LR 9 Ch App 244 Comandate Marine Corp v Pan Australia Shipping Pty Ltd (2006) 157 FCR 45; [2006] FCAFC 192 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 ENRC Marketing AG v OJSC "Magnitogorsk Metallurgical Kombinat" (2011) 285 ALR 444; [2011] FCA 1371 Ethiopian Oilseeds and Pulses Export Corporation v Rio del Mar Foods Inc [1990] 1 Lloyd's Rep 86 Flint Ink NZ Ltd v Huhtamaki Australia Pty Ltd (2014) 44 VR 64; [2014] VSCA 166 Francis Travel Marketing Pty Limited v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160 Global Partners Fund Ltd v Babcock and Brown Ltd (In liq) (2010) 79 ACSR 383; [2010] NSWCA 196 Grant v John Grant & Sons Pty Ltd (1954) 91 CLR 112; [1954] HCA 23 Hancock Prospecting Pty Ltd v DFD Rhodes Pty Ltd (2020) 55 WAR 435; [2020] WASCA 77 Hancock Prospecting Pty Ltd v Rinehart (2017) 257 FCR 442; [2017] FCAFC 170 Inghams Enterprises Pty Ltd v Hannigan (2020) 379 ALR 196; [2020] NSWCA 82 Lepcanfin Pty Ltd v Lepfin Pty Ltd [2020] NSWCA 155 Lipman Pty Limited v Emergency Services Superannuation Board [2011] NSWCA 163 Mackay v Dick [1881] 6 AC 251 Paper Products v Tomlinsons (Rochdale) Ltd (1993) 43 FCR 439; [1993] FCA 494 Recyclers of Australia Pty Ltd v Hettinga Equipment Inc (2000) 100 FCR 420; [2002] FCA 547 Rinehart v Hancock Prospecting Pty Ltd (2019) 267 CLR 514; [2019] HCA 13 Rinehart v Rinehart [2020] NSWSC 68 Rinehart v Welker (2018) 95 NSWLR 221; [2012] NSWCA 95 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332; [1990] HCA 8 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Walter Rau Neusser Oel und Fett AG v Cross Pacific Trading Ltd [2005] FCA 1102 Category: Procedural rulings Parties: Berna Karadag (First Plaintiff) Haluk Karadag (Second Plaintiff) Samkara Holdings Pty Ltd (First Defendant) Steven Samuel Murabito (Second Defendant) Lupco Stojcevski (Third Defendant) Peter Karbone (Fourth Defendant) Bosilka Stojcevska (Fifth Defendant) Artos Espresso Pty Ltd (Sixth Defendant) Registrar General for New South Wales (Seventh Defendant) Representation: Counsel: M Ashhurst SC with A Gandar (Plaintiffs) DA Smallbone (First to Third Defendants) J Biady (Solicitor) (Fifth Defendant) M Coffey (Solicitor) (Sixth Defendant)