M1 & Ors v L1 & Ors [2007] NSWSC 346

New South Wales Supreme Court

CITATION : M1 & Ors v L1 & Ors [2007] NSWSC 346

HEARING DATE(S) : 11/04/07

JUDGMENT DATE : 13 April 2007

JURISDICTION : Equity Division Commercial List

JUDGMENT OF : Einstein J

DECISION : Upon its proper construction deed provided that the Wise Man would as an expert proceed to determine all issues on a final basis

CATCHWORDS : Courts - Jurisdiction-Practice - Contract-Construction - Expert determination - Arbitration - 'Wise Man' Dispute Resolution mechanism - Commercial deed providing for appointment of "Wise Man" to have plenary powers to resolve in binding and final fashion disputes of any nature - Deed identifying a range of candidates for appointment as Wise Man all being former justices of Supreme Court of New South Wales or of Federal Court of Australia - Whether deed constituted appointee an arbitrator or an expert - Whether if appointment be that of an expert, agreement to that extent would be contrary to public policy and void as an ouster of the jurisdiction - Commercial Arbitration Act 1984 - Application for leave to appeal from arbitration - Manifest error of law - Whether strong evidence that Wise Man made an error of law and that determination may add or may be likely to add substantially to the certainty of the commercial law

LEGISLATION CITED : Commercial Arbitration Act 1984 (NSW) Industrial Relations Act 1996 (NSW).

Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Baulderstone Hornibrook Engineering Pty Ltd v Kayah Holdings Pty Ltd (1997) 14 BCL 277 Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 Bos v Helsham (1866) L.R. 2 Ex. 72 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Capricorn Inks Pty Ltd v Lawter International (Australasia) Pty Ltd [1989] 1 Qd R 8 Re Carus-Wilson & Greene (1886) 18 Q.B.D. 7 Dobbs v National Bank of Australasia Ltd (1935) 53 CLR 643 Fletcher Construction Australia Ltd v MPN Group Pty Ltd [Unreported, Supreme Court of New South Wales, Rolfe J, 14 July 1997] Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 HIH Casualty and General Insurance (NZ) Limited (in liquidation) v General Reinsurance Australia Limited [2004] NSWSC 659 International Fina Services AG v Katrina Shipping Ltd ("The Fina Samco") [1995] 2 Lloyd's Rep 344 Investors Compensation Scheme Pty Ltd v West Bromwich Building Society [1998] 1 WLR 896 Ipswich Borough Council v Fisons Plc [1990] 1 Ch 709: CASES CITED : Lakatoi Universal Pty Ltd v Walker [2000] NSWSC 113 Lee v The Showmen's Guild of Great Britain [1952] 2 QB 329 London Export Corporation Ltd v Jubilee Coffee Roasting Co. [1958] 1 W.L.R. 271 Magill v National Australia Bank Ltd [2001] NSWCA 221 Maggbury Pty Limited v Hafele Australia Pty Limited (2001) 76 ALJR 246; (2001) 210 CLR 181 Meehan v Jones (1982) 149 CLR 571 Natoli v Walker [(1994) 217 ALR 201 Panmal Constructions Pty Ltd v Warringah Formwork Pty Ltd [2004] NSWSC 204 Peppers Hotel Management Pty Ltd v Hotel Capital Partners Ltd [2004] NSWCA 114 Prenn v Simmonds [1971] 1 WLR 1381 Promenade Investments Pty Ltd v State of New South Wales (1992) 26 NSWLR 203; (1991) 26 NSWLR 184; Re Dawdy and Hartcup (1885) 15 QBD 426 Savcor Pty Ltd v State of New South Wales and Another (2001) 52 NSWLR 587 Sea Containers Ltd v ICT Pty Ltd [2006] NSWSC 134 Zeke Services Pty Ltd v Traffic Technologies Ltd [2005] QSC 135