PETER R SCHNABEL, PREMIER RIDES INC., STEVEN MARBLE & CATALYST ENTERTAINMENT INC. v KEVIN YUNG LUI, FROYER HOLDINGS DEVELOPMENT & TRADING COMPANY, FROYER HOLDINGS (ASIA) LIMITED, FROYER HOLDINGS USA INC & FSN TOP SECRET PRODUCTIONS INC. [2002] NSWSC 15

New South Wales Supreme Court

CITATION : PETER R SCHNABEL, PREMIER RIDES INC., STEVEN MARBLE & CATALYST ENTERTAINMENT INC. v KEVIN YUNG LUI, FROYER HOLDINGS DEVELOPMENT & TRADING COMPANY, FROYER HOLDINGS (ASIA) LIMITED, FROYER HOLDINGS USA INC & FSN TOP SECRET PRODUCTIONS INC. [2002] NSWSC 15 CURRENT JURISDICTION: Equity Division Commercial List FILE NUMBER(S) : SC 50017/2001 HEARING DATE(S) : 25 July 2001, 20, 21 & 22 November 2001 JUDGMENT DATE : 1 February 2002

Peter R Schnabel, Premier Rides Inc., Steven Marble, Catalyst Entertainment Inc. (Plaintiffs) Kevin Yung Lui (First Defendant) PARTIES : Froyer Holdings development & Trading Company (Second Defendant) Froyer Holdings (Asia) Limited (Third Defendant) Froyer Holdings USA Inc. (Fourth Defendant) FSN Top Secret Productions Inc. (Fifth Defendant) JUDGMENT OF : Bergin J

COUNSEL : F Kunc (Plaintiffs) S Epstein SC (First Defendant) SOLICITORS : Deacons Lawyers (Plaintiffs) Frank Low Yeung & Co (First Defendant) CATCHWORDS : [Foreign Judgments] Judgment obtained in the United Stated District Court, Central District of California - Sanctions imposed by US Court "striking" defence and dismissing counterclaim "with prejudice" - Trial on damages - Damages awarded including multiple (quadruple) penal or exemplary damages - Whether the judgment is final and conclusive - Whether the award of multiple damages was a penalty - Whether penalty severable. LEGISLATION CITED : Foreign Judgments Act 1973 Abingdon Rural District Council v O'Gorman [1968] 3 All ER 79 Ainslie v Ainslie (1927) 39 CLR 381; (1926) 26 SR (NSW) 567 Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Angel v Bullington 330 US 183 Armour v Bate (1891) 2 QB 233 Attorney-General (UK) v Heinemann Publishers Australia Pty Ltd (1987) 10 NSWLR 86; (1988) 165 CLR 30 Attorney-General (UK) v Wellington Newspapers Ltd (1988) 1 NZLR 129 Bank of Bermuda Ltd v Stutz (1965) 2 OR 121 Boyle v Victoria Yukon Trading Company (1902) 9 BCR 213 Carl Zeiss Stiftung v Rayner & Keeler Ltd [1967] 1 AC 853 Clough & Rogers v Frog (1974) 48 ALJR 481 Cohen v McWilliam (1995) 38 NSWLR 476 Cropper v Smith (1884) 26 Ch D 700 Damberg v Damberg [2001] NSWCA 87 Desert Sun Loan Corp v Hill [1996] 2 All ER 847 DSV Silo-und Verwaltungsgesellschaft mbH v Sennar (Owners) [1985] 2 All ER 104, [1985] 1 WLR 490 Evans v Bartlam (1937) AC 473 Federated Department Stores, Inc v Moitie 452 US 394 Four Embarcadero Centre Venture et al v Kalen et al 65 OR (2d) 551 Four Embarcadero Centre Venture et al. v Mr Greenjeans Corp. et al. (1988) 64 OR (2d) 746 Gray v Motor Accident Commission (1998) 196 CLR 1 Haigh v Haigh (1885) 31 Ch D 478 CASES CITED : Huntington v Attrill [1893] AC 150 Idoport Pty Ltd v National Australia Bank Ltd (2000) 50 NSWLR 640 Jones v Jones (1889) 22 QBD 425 Lamb v Cotogno (1987) 164 CLR 1 Linprint Pty Ltd v Hexham Textiles Pty Ltd (1991) 23 NSWLR 508 Minkler and Kirschbaum v Sheppard (1991) 60 BCLR (2d) 360 Morguard Investments Ltd v de Savoye (1990) 52 BCLR (2d) 160 Nouvion v Freeman (1890) 15 AC 1 Queensland v JL Holdings Pty Ltd (1997) 189 CLR 146 Raulin v Fischer [1911] 2 KB 93 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Securities and Exchange Commission v Hasho 134 F.R.D 74 (S.D.N.Y. 1991) Skaggs Companies Inc v Mega Technical Holdings Ltd, Court of Queens Bench Alberta, Judicial District of Edmonton, Unreported, Master Funduk 11.07.00 US v Powell (9th Cir 1994) (24 F. 3d) United States of America v Inkley (1989) 1 QB 255 United States Surgical Corporation v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 Vanquelin v Bouard (1863) 15 CB (NS) 341; 143 ER 817 Wisconsin v The Pelican Insurance Company 127 US (20 Davis) 265 [H Black "Blacks Law Dictionary" 5th edition 1979 Dicey & Morris "The Conflict of Laws" (2000) Sweet & Maxwell Everest & Strode "Law of Estoppel" (1923) Stevens & Sons Ltd. Professor H E Read "Recognition and Enforcement of Foreign Judgment" (1938) Harvard University Press. Law Reform Commission Background Paper 7 "Review of Civil and Administrative Penalties in Federal Jurisdiction" Spencer, Bower, Turner & Handley "The Doctrine of Res Judicata" (1996) Butterworths.] DECISION : See paragraph 181.