Mitchell v Roads and Maritime Services (now known as Transport for NSW) (No 2) [2024] NSWSC 1165

Supreme Court New South Wales

Medium Neutral Citation: Mitchell v Roads and Maritime Services (now known as Transport for NSW) (No 2) [2024] NSWSC 1165 Hearing dates: 8 July 2024 Decision date: 13 September 2024 Jurisdiction: Equity - Commercial List Before: McGrath J Decision: Direct that within seven days the parties consult with each other and provide to the Associate to McGrath J agreed short minutes giving effect to these reasons or, failing such agreement, their respective proposed short minutes giving effect to these reasons. Catchwords: CIVIL PROCEDURE — parties — joinder — representative proceedings — interlocutory dispute between plaintiffs and litigation funder — plaintiffs seek to join litigation funder as a defendant CIVIL PROCEDURE — representative proceedings — separate determination of questions — where appropriate — question of whether it is appropriate in this case for a dispute between litigation funder and plaintiffs to be determined at interlocutory hearing or whether proceedings should be stayed and separate proceedings initiated CIVIL PROCEDURE — representative proceedings — conduct of proceedings — meaning and application of the court's power under Civil Procedure Act 2005 (NSW) s 183 — whether the court has power to adjudicate the interlocutory dispute by relying on the power in s 183 — whether it is both appropriate and necessary to ensure that justice is done in these proceedings by determining the dispute between the plaintiffs and the litigation funder COMMERCIAL ARBITRATION — arbitration agreement — stay of proceedings — whether arbitration agreement is null, void, inoperative or incapable of being performed — whether cl 14 of the Funding Agreement is an "arbitration agreement" within the meaning of that expression in s 7(1) of the Commercial Arbitration Act 2010 (NSW) EQUITY — fiduciary duties — fiduciary relationships — where the litigation funder attempts to direct and control proceedings — where lead plaintiffs in representative proceedings have the conduct of the proceedings on behalf of the class members and owes fiduciary obligations to them EQUITY — trusts and trustees — beneficiaries — right to call for distribution of trust property — funds deposited to plaintiffs' lawyers' trust account by litigation funder — whether plaintiffs' lawyers hold money on trust on behalf of the plaintiffs or on behalf of the litigation funder Legislation Cited: Civil Procedure Act 2005 (NSW) s 183 Commercial Arbitration Act 2010 (NSW) s 8 Commercial Arbitration Act 2011 (Vic) s 7(1) Federal Court Act 1976 (Cth) s 33ZF International Arbitration Act 1974 (Cth) s 7 Legal Profession Uniform Law 2014 (NSW) Part 4.2 Roads Act 1993 (NSW) s 179(1) Trustee Act 1925 (NSW) s 63 Uniform Civil Procedure Rules 2005 (NSW) r 6.24(1) Cases Cited: Alston v Cormack Foundation Pty Ltd (2018) 128 ACSR 33; [2018] FCA 895 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 BMW Australia Ltd v Brewster (2019) 269 CLR 574; [2019] HCA 45 Botsman v Bolitho (No 1) (2018) 57 VR 68; [2018] VSCA 278 Caason Investments Pty Ltd v International Litigation Partners No 3 Ltd (2018) 265 FCR 487; [2018] FCAFC 176 Commonwealth Bank of Australia v White [1999] 2 VR 681 Construcciones y Auxiliar de Ferrocarriles S.A. v CPB Contractors Pty Limited [2022] NSWSC 1264 Crowle Foundation v NSW Trustee & Guardian [2010] NSWSC 647 David William Pallas & Julie Ann Pallas as trustees for the Pallas Family Superannuation Fund v Lendlease Corporation Ltd [2024] NSWCA 83 Dyczynski v Gibson [2020] FCAFC 120 Giles v Commonwealth of Australia [2014] NSWSC 83 Haselhurst v Toyota Motor Corp Australia Ltd t/as Toyota Australia (2020) 101 NSWLR 890; [2020] NSWCA 66 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 Kauter v Hilton (1953) 90 CLR 86 Legal Services Board v Gillespie-Jones (2013) 249 CLR 493; [2013] HCA 35 Lepcanfin Pty Ltd v Lepfin Pty Ltd [2020] NSWCA 155 McMullin v ICI Australia Operations Pty Ltd (No 6) (1998) 84 FCR 1 Mitchell v Roads and Maritime Services (now known as Transport for NSW) [2022] NSWSC 500 Mitchell v Transport for NSW [2022] HCASL 214 Mitchell v Transport for NSW [2022] NSWCA 141 Money Max International Pty Ltd v QBE Insurance Group Ltd (2016) 245 FCR 191; [2016] FCAFC 148 Montevento Holdings Pty Ltd v Scaffidi (2012) 246 CLR 325; [2012] HCA 48 Northbuild Construction Pty Ltd v Discovery Beach Project Pty Ltd [2007] QSC 206 Perara v GetSwift Ltd (2018) 263 FCR 1; [2018] FCA 732 Qantas Airways Ltd v AF Little Pty Ltd (1981) 2 NSWLR 34 R&B Investments Pty Ltd (Trustee) v Blue Sky (Reserved Question) [2024] FCAFC 89 Raskin v Mediterranean Olives Estate Ltd [2017] VSC 94 Raulfs v Fishy Bite Pty Ltd [2012] NSWCA 135 Re BBY Limited (Receivers and Managers Appointed) (in liq) and BBY Holdings Pty Limited (Receivers and Managers Appointed) (in liq) [2022] NSWSC 29 Re GRP [2019] NSWSC 710 Re Rosie (No 2) [2022] NSWSC 1750 Reeves v Reeves (No 2) [2024] NSWSC 386 Ross v Lane Cove Council (2014) 86 NSWLR 34; [2014] NSWCA 50 Shoalhaven City Council v Firedom Civil Engineering Pty Ltd (2011) 244 CLR 305 Siemens Ltd v Origin Energy Uranquinty Power Pty Ltd (2011) 80 NSWLR 398 The Illawarra Community Housing Trust Limited v MP Park Lane Pty Ltd [2020] NSWSC 751 Tomlinson v Ramsey Food Processing Pty Ltd (2015) 256 CLR 507; [2015] HCA 28 Victoria v Sutton (1998) 195 CLR 291; [1998] HCA 56 Watpac Construction NSW Pty Limited v Taylor Thompson Whitting (NSW) Pty Ltd [2015] NSWSC 780 WCX M4-M5 Link AT Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd (No 2) [2022] NSWSC 505 Westfield Management Ltd v AMP Capital Property Nominees Ltd (2012) 247 CLR 129; [2012] HCA 54 Wigmans v AMP Ltd (2021) 270 CLR 623; [2021] HCA 7 WLD Practice Holdings Pty Ltd v Sara Stockham [2020] NSWSC 395 Category: Procedural rulings Parties: Darren Mitchell and Rosaline Mitchell (Plaintiffs/ Applicants) Roads and Maritime Services (now known as Transport for NSW) (Defendant) Litigation Fund WCX Pty Ltd (Respondent) Representation: Counsel: D McLure SC and H Cooper (Plaintiffs/Applicants) L Johnston (Defendant) R Coshott – Director (Respondent)