Lieschke v Lieschke [2022] NSWSC 1705

Supreme Court New South Wales

Medium Neutral Citation: Lieschke v Lieschke [2022] NSWSC 1705 Hearing dates: 13 October 2022; final submissions 14 October 2022 Date of orders: 16 December 2022 Decision date: 16 December 2022 Jurisdiction: Equity - Commercial Arbitration List Before: Rees J Decision: Set aside arbitral award. Catchwords: COMMERCIAL ARBITRATION – conduct of arbitral proceedings – Commercial Arbitration Act 2010 (NSW), s 18, "reasonable opportunity of presenting the party's case" – Commercial Arbitration Act 2010 (NSW), ss 34(2)(a)(ii), 34(2)(b)(ii) – principles at [4]-[28]. COMMERCIAL ARBITRATION – ARBITRAL AWARDS – dissolution of family farming partnership – father and son each retain accounting experts – issue whether farms were gifts or held on trust for partnership – directions for interim award on trusts – interim award in favour of son – father retains new lawyers – father seeks to broaden attack on partnership accounts – arbitrator declines – father retains new accounting expert – arbitrator restricts arbitral process to existing experts – arbitrator prohibits experts from communicating with new expert – whether "unable to present the party's case – whether award in conflict of public policy – award set aside – interim award stands. COMMERCIAL ARBITRATION – SET ASIDE OR SUSPEND – Commercial Arbitration Act 2010 (NSW), ss 34(4) – principles at [147]-[155] – whether Court should set aside suspension of setting aside order and remit to arbitrator to correct defects – whether arbitrator can continue in fair manner – arbitrator made extremely critical remarks – no suspension of setting aside order. Legislation Cited: Arbitration Act 1996 (UK) Commercial Arbitration Act 2010 (NSW), ss 1(1), 1C, 2A, 5, 18, 19, 33D, 34(1), 34(2)(a)(ii), 34(2)(a)(iii), 34(2)(b)(ii), 34(3), 34(4), 34A, 34A(7)(d) International Arbitration Act 2010 (Cth), s 18C UNCITRAL Arbitration Rules (15 December 1976, UNGA Res 31/98, UN Doc A/RES/31/98), art 15(1) UNCITRAL Model Law on International Commercial Arbitration (as adopted by the United Nations Commission on International Trade Law, 21 June 1985, as amended on 7 July 2006), art 18 Cases Cited: AKN v ALC [2015] SGCA 18 Amasya Enterprises Pty Ltd v Asta Developments (Aust) Pty Ltd [2016] VSC 326 Cameron Australasia Pty Ltd v AED Oil Ltd [2015] VSC 163 Colin Joss & Co Pty Ltd v Cube Furniture Pty Ltd [2015] NSWSC 735 Corporacion Trans Nacional de Inversiones SA de CV v STET International SpA (1999) 45 OR (3d) 183 Dongwoo Mann+Hummel Co Ltd v Mann+Mann GmbH [2008] 3 SLR(R) 871 FE Hookway & Co Ltd v Alfred Isaacs & Sons [1954] 1 Lloyds Rep 491 Grand Pacific Holdings Ltd v Pacific China Holdings Ltd (in liq) [2012] HKCU 971 Hagop Ardahalian v Unifert International SA, The Elliser [1984] 2 Lloyds Rep 84 Hui v Esposito Holdings Pty Ltd [2017] FCA 648; (2017) 345 ALR 287 Ivankovic v West Australian Planning Commission [2020] WASC 401 Joint Stock Company 'Aeroflot-Russian Airlines' v Berezovsky [2013] EWCA Civ 784 Lloyd Del Pacificio v Board of Trade (1930) 37 Ll L Rep 103 Mango Boulevard Pty Ltd v Mio Art Pty Ltd [2018] 1 Qd R 245; [2017] QSC 87 Mango Boulevard Pty Ltd v Mio Art Pty Ltd [2018] QCA 39 Nuance Group (Australia) Pty Ltd v Shape Australia Pty Ltd [2021] NSWSC 1498; (2021) 395 ALR 720 Pacific China Holdings Ltd (in liq) v Grand Pacific Holdings Ltd [2012] 3 HKC 498; [2012] HKCU 971 Pacific China Holdings Ltd v Grand Pacific Holdings Ltd [2011] HKCFI 424 PBO v DONPRO [2021] EWHC 1951 Sino Dragon Trading Ltd v Noble Resources International Pte Ltd [2016] FCA 1131 Spaseski v Mladenovski [2019] WASC 65 TCL Air Conditioner (Zhongshan) Co Ltd v Castel Electronics Pty Ltd (2014) 232 FCR 361; [2014] FCAFC 83 WCX M4-M5 Link AT Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd (No 2) [2022] NSWSC 505 Texts Cited: Binder, Peter, International Commercial Arbitration and Mediation in UNCITRAL Model Law Jurisdictions (4th ed, 2019, Wolters Kluwer) Broaches, Aron, Commentary on the UNCITRAL Model Law on International Commercial Arbitration (1990, Springer) Holtzmann, Howard M and Joseph E Neuhaus, A Guide to the UNCITRAL Model Law on International Commercial Arbitration: Legislative History and Commentary (Kluwer Law, 1989) Mustill, Michael J and Stewart C Boyd, Commercial Arbitration (2nd ed, 1989, Butterworths) Revised Explanatory Memorandum, International Arbitration Bill 2010 (Cth) UNCITRAL, Analytical Commentary on Draft Text of a Model Law on International Commercial Arbitration: Report of the Secretary-General (25 March 1995, UN Doc A/CN.9/264) Category: Principal judgment Parties: Errol Lieschke (Plaintiff) Malcolm Lieschke (First Defendant) Michelle Lieschke (Second Defendant) John McGruther (Third Defendant – submitting appearance) Representation: Counsel: Mr G Burton SC / Mr J O'Sullivan (Plaintiff) Dr CJ Birch SC / Mr J Mack (First and Second Defendants)