The Heart Research Institute Limited and Anor v Psiron Limited [2002] NSWSC 646

New South Wales Supreme Court

CITATION : The Heart Research Institute Limited and Anor v Psiron Limited [2002] NSWSC 646 FILE NUMBER(S) : SC 50031/02 HEARING DATE(S) : 24/07/2002 JUDGMENT DATE : 25 July 2002

The Heart Research Institute Limited (First Plaintiff) PARTIES : The Heart Research Developments Pty Limited (Second Plaintiff) Psiron Limited (Defendant) JUDGMENT OF : Einstein J

COUNSEL : Mr S Finch SC (Plaintiffs) Mr RJ Webb (Defendant) Clayton Utz (Plaintiffs) SOLICITORS : Russell & Company and Coudert Bros (Defendant) CATCHWORDS : Contract - Dispute resolution - Suit seeking specific performance of dispute resolution clause - Expert determination procedure - Whether expert determination mandatory - Whether clause ousts jurisdiction of the Court - Whether clause void for public policy - Whether clause void for uncertainty - Effect of uncertainty in agreement to submit dispute to expert determination - Specific performance of agreement to submit to expert determination of curial proceeding - Principles relating to exercise of discretion to grant specific performance - Consideration of matters which may affect the exercise of the discretion to adjourn or stay Court proceedings so as to allow alternative dispute resolution agreement to be engaged and followed. Commercial Arbitration Act 1984 (NSW) LEGISLATION CITED : Supreme Court Act 1970 (NSW) Supreme Court Rules 1970 (NSW) Trade Practices Act 1974 (Cth) Aiton Australia Pty Ltd v Transfield Pty Ltd (1999) 153 FLR 236 Aztec Mining Co Limited v Leighton Contractors Pty Limited (1990) 1 ADRJ 104 Badgin Nominees Pty Limited v Oneida Limited [1998] VSC 188, Gillard J (unreported) Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd (1993) AC 334 Co-operative Insurance Society Ltd v Argyll Stores (Holdings) Ltd [1998] AC 1 Dobbs v National Bank of Australasia Ltd (1935) 53 CLR 643 Elizabeth Bay Developments Pty. Limited v Boral Building Services Pty. Limited (1995) 35 NSWLR 709 Fermentation Industries (Aust) Pty Ltd v Burns Philp & Co Ltd NSWSC, 12 February 1998 (unreported), Fletcher Construction Australia Limited v MPN Group Pty Limited NSWSC, 14 July 1997 (unreported) Goldspar Australia Pty. Limited v City of Sydney [2001] NSWCA 246 CASES CITED : Government Insurance Office of NSW v Atkinson-Leighton Joint Venture (1979) 146 CLR 206 Hooper Bailie Associated Ltd v Natcon Group Pty Ltd (1992) 28 NSWLR 194 IBM Australia Ltd v National Distribution Services Ltd (1991) 22 NSWLR 466 Kanivah Holdings Pty Ltd v Holdsworth Properties Pty Ltd [2001] NSWSC 405, 21 May (unreported) Legal and General Life of Australia Ltd v A Hudson Pty Ltd (1985) 1 NSWLR 314 Metropolitan Tunnel and Public Works Limited v London Electric Railway Co [1926] Ch 371 Morrow v Chinadotcom [2001] NSWSC 209 Patrick Stevedores Operations No. 2 Pty Limited & Ors v Maritime Union of Australia & Ors (1998) 195 CLR 1 Public Authorities Superannuation Board v Southern International Developments Corporation Pty Limited, NSWSC, 19 October 1987 (unreported) Savcor Pty Limited v New South Wales (2001) 52 NSWLR 587 State of New South Wales & 3 Ors v Banabelle Electrical Pty Limited, [2002] NSWSC 178 Triarno Pty Limited v Triden Contractors Limited NSWSC, 22 July 1992 (unreported) DECISION : Agreement fails for lack of certainty.