King River Digital Assets Opportunities SPC v Salerno [2023] NSWSC 510

Supreme Court New South Wales

Medium Neutral Citation: King River Digital Assets Opportunities SPC v Salerno [2023] NSWSC 510 Hearing dates: 29 March 2023 Date of orders: 16 May 2023 Decision date: 16 May 2023 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Proceedings stayed. Catchwords: COMMERCIAL ARBITRATION — plaintiff is customer of digital asset trading company — arbitration agreement between customer and company — customer entrusts US$20.4m to company — company goes into administration — customer sues company director for accessorial liability for misleading and deceptive conduct of company — director will defend claim on basis that company did not engage in such conduct — director initially seeks transfer and security for costs – director becomes aware of ability to seek stay — s2 Commercial Arbitration Act 2010 (NSW) — whether a person claiming "through or under" party to the arbitration agreement — director taking stand on same ground as that available to company — essential element of defence vested in or exercisable by company – whether claim is subject of arbitration agreement — whether agreement inoperative by abandonment. Legislation Cited: Commercial Arbitration Act 2010 (NSW) ss 2, 8, 16 UNCITRAL Model Law on International Commercial Arbitration art 16(1) Cases Cited: ACD Tridon v Tridon Australia [2022] NSWSC 896 Comandate Marine Corp v Pan Australia Shipping Pty Ltd (2006) 157 FCR 45; [2006] FCAFC 192 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 DFD Rhodes Pty Ltd v Hancock Prospecting Pty Ltd [2022] WASCA 97 Dyna-Jet Pte Ltd v Wilson Taylor Asia Pacific Pte Ltd [2017] 3 SLR 267; [2016] SHJC 238 Hancock Prospecting Pty Ltd (2019) 267 CLR 514; [2019] HCA 13 Hancock Prospecting Pty Ltd v Rinehart (2017) 257 FCR 442; [2017] FCAFC 170 John Holland v Kellog Brown & Root [2015] NSWSC 451 Khoury v Government Insurance Office of NSW (1983) 165 CLR 622; [1984] HCA 55 La Donna Pty Ltd v Wolford AG [2005] VSC 359; (2005) 194 FLR 26 Lepcanfin Pty Ltd v Lepfin Pty Ltd (2020) 102 NSWLR 627; [2020] NSWCA 155 Michael Wilson & Partners v Nicholls (2011) 244 CLR 427; [2011] HCA 48 Pipeline Services WA Pty Ltd v Atco Gas Australia Pty Ltd [2014] WASC 10 Sargent v ASL Developments Ltd (1974) 131 CLR 634; [1974] HCA 40 Tanning Research Laboratories Inc v O'Brien [1990] HCA 8; (1990) 169 CLR 332 WCX M4-M5 Link AT Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd (No 2) [2022] NSWSC 505 WesTrac Pty Ltd v Eastcoast OTR Tyres Pty Ltd [2008] NSWSC 894; (2008) 219 FLR 461 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Category: Procedural rulings Parties: King River Digital Assets Opportunities SPC (Plaintiff) Matteo Salerno (Defendant) Representation: Counsel: Mr O Jones (Plaintiff) Mr J Hutton SC (Defendant)