Sapphire (SA) Pty Ltd (trading as River City Grain) v Barry Smith Grains Pty Ltd (in liq) [2011] NSWSC 1451

Supreme Court New South Wales

Medium Neutral Citation: Sapphire (SA) Pty Ltd (trading as River City Grain) v Barry Smith Grains Pty Ltd (in liq) [2011] NSWSC 1451 Hearing dates: 7 November 2011 Decision date: 28 November 2011 Jurisdiction: Equity Division - Commercial List Before: Ward J Decision: Leave granted pursuant to s 38(4)(b) of the Commercial Arbitration Act 1984 (NSW) to plaintiff to appeal from the question of law identified as the fifth ground in the plaintiff's Commercial Arbitration List Statement. Leave to appeal on the remaining questions of law identified in that List Statement refused. Catchwords: COMMERCIAL ARBITRATION - whether leave to appeal to the Supreme Court should be granted on questions of law arising out of commercial arbitration award - whether threshold requirements pursuant to s 38(5) of the Commercial Arbitration Act 1984 (NSW) satisfied - whether the determination of the relevant questions of law could substantially affect the rights of one or more parties to the arbitration agreement - whether there is either a manifest error on the face of the award or strong evidence that the Tribunal made an error of law and, if so, the determination of that question may add or be likely to add substantially to the certainty of commercial law - if threshold requirements satisfied whether discretion should be exercised to grant leave - CIVIL PROCEDURE - consideration of Home Office v Harman implied undertaking in relation to use in the subject arbitration or these proceedings of documents obtained during the course of another arbitration - HELD - leave to appeal granted in relation to one question of law Legislation Cited: Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: AG Australia Holdings Ltd v Burton [2002] NSWSC 170; (2002) 58 NSWLR 464 Ainsworth v Hanrahan (1991) 25 NSWLR 155 Akins v Abigroup Ltd (1998) 43 NSWLR 539 Australian Beverage Distributors Pty Limited v Evans & Tate (2006) 58 ACSR 22; [2006] NSWSC 560 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Barry Smith Grains Pty Ltd (In liq) v Riordan Group Pty Limited [2010] NSWSC 1291 Bostik Australia Pty Limited v Liddiard (No 2) [2009] NSWCA 304 Bourns Inc v Raychem Corp [1999] 1 All ER 908 Bowen Investments Pty Limited v TAB Corp Holdings Limited (No 2) [2008] FCAFC 107 Bremner Handelsgesellschaft mbH v Westzucker GmbH (No. 2) [1981] 2 Lloyd's Rep 132-133 Brimaud v Honeysett Instant Print Pty Ltd (1988) 217 ALR 44 British and American Tobacco Services Ltd v Cowell (No 2) (2003) 8 VR 571 Central Queensland Cement Pty Ltd v Hardy [1989] 2 Qd R 509 Champsey Bhara & Co v Jivraj Balloo Spinning & Weaving Co Ltd [1923] AC 480 Commonwealth of Australia v Temwood Holdings Pty Ltd (2001) 25 WAR 31 Crest Homes plc v Marks [1987] AC 829 Cretazzo v Lombardi (1975) 13 SASR 4 Distillers Co (Biochemicals) Ltd v Times Newspapers Ltd [1975] QB 613; 1 All ER 41 Dodds Family Investments Pty Limited v Lane Industries Pty Limited (1993) 26 IPR 261 Doran Constructions Pty Ltd v Health Administration Corporation (NSW) (1994) 12 BCL 104 Elite Protective Personnel Pty Limited v Salmon [2007] NSWCA 322 Elite Protective Personnel Pty Ltd v Salmon (No 2) [2007] NSWCA 373 Esso Australia Resources Ltd v Plowman [1995] HCA 19; (1995) 183 CLR 10 Evans v Mclean (No2) (1985) 9 ACLR 796 Federal Commerce & Navigation Co Ltd v Tradax Export SA (The 'Maratha Envoy') [1978] 1 AC 1 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (No 3) (1998) 30 ACSR 20 Forty Two International Pty Ltd v Barnes [2010] FCA 397 Gett v Tabet [2009] NSWCA 76; (2009) 254 ALR 504 Giacomo Costa Fu Andrea v British Italian Trading Co Ltd [1963] 1 QB 201 Gianfriddo v Garra Constructions Pty Ltd [1971] VR 289 Gold Coast Council v Canterbury Pipe Lines (Aust) Pty Ltd (1968) 41 ALJR 307 Gordian Runoff Ltd v Westport Insurance Corporation [2010] NSWCA 57; (2010) 267 ALR 74 Hadley v Baxendale (1854) 9 Exch 341; 156 ER 145 Hanneybel v Uniflex (Australia) Pty Ltd [2002] WASCA 349 Harbour City Real Estate v Cargill (No 3) [2009] FCA 669; (2009) 186 IR 260 Hardoon v Belilios [1901] AC 118 Hearne v Street [2008] HCA 36; (2008) 235 CLR 125 Hodge v TCN Channel 9 (No 2) [2006] NSWSC 1272 Home Office v Harman [1983] 1 AC 280 Hughes v Western Australian Cricket Association (1986) ATPR 40-748. James v Surf Road Nominees (No 2) [2005] NSWCA 296 Keynes v Rural Directions Pty Ltd [2010] FCAFC 100; (2010) 186 FCR 281 Laen Pty Ltd v At the Heads Pty Ltd & Ors [2011] VSC 315 Latoudis v Casey [1990] HCA 59; (1990) 170 CLR 534 Lavender View Regency Pty Ltd v North Sydney Council (No 2) [1999] NSWSC 775 Leallee v Commissioner of the NSW Department of Corrective Services [2009] NSWSC 518 Liberty Funding Pty Ltd v Phoenix Capital Ltd [2005] FCAFC 3; (2005) 218 ALR 283 LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Ltd (No 2) [2002] NSWSC 72 Moage Ltd v Jagelman and Others [2002] NSWSC 953; (2002) 43 ACSR 173 Mobil Oil Australia Ltd v Guina Developments Pty Ltd [1996] 2 VR 34 Natoli v Walker (1994) 217 ALR 201 Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 Ohn v Walton (1995) 36 NSWLR 77 Oil Basins Limited v BHP Billiton Limited [2007] VSCA 255; (2007) 18 VR 346 Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 Owners Strata Plan No 64970 v Austruc Constructions Ltd (in liq) (No 5) [2010] NSWSC 568 Pacific General Securities Ltd v Soliman & Sons Pty Ltd [2006] NSWSC 724 Padkohe Pty Ltd v Fletcher [2006] NSWSC 1239 Pearl Marin Shipping A/B v Pietro Cingolani SAS, The General Valdes [1982] 1 Lloyd's Rep 170 Prime Finance Pty Ltd and Ors v Randall and Ors [2009] NSWSC 361 Promenade Investments Pty Ltd v State of New South Wales (1992) 26 NSWLR 203 Re a Debtor No 21 of 1950 [1951] Ch 612 Re Addstone Pty Ltd (In liq); Ex parte Macks (1998) 30 ACSR 156 Re Chief Commissioner of Stamp Duties v Buckle [1998] HCA 4; (1998) 192 CLR 226 Re Crest Realty Pty Ltd (No 2) (In liq) [1977] 1 NSWLR 664 Riddick v Thames Board Mills Ltd [1977] QB 881 Roache v News Group Newspapers [1992] TLR 551 RP Robson Constructions Pty Ltd v Williams (1989) 6 BCL 219 Sabah Yazgi v Permanent Custodian Ltd (No 2) [2007] NSWCA 306 Sahab Holdings Pty Ltd v Registrar-General and Anor [No 3] [2010] NSWSC 403 Seaton v Burnand [1900] AC 135 Sivritas v Sivritas (No. 2) [2008] VSC 580 Standard Commodities Pty Limited v Societe Socinter Department Centragel [2005] NSWSC 493; (2005) 54 ACSR 496 Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2010] NSWSC 1106 Timms v Clift [1998] 2 Qd R 100 Trade Practices Commission v Nicholas Enterprises Pty Limited (No 3) (1979) 28 ALR 201; 42 FLR 213 Turner v Hancock (1882) 20 Ch D 303 Tuta Products Pty Ltd v Hutcherson Bros Pty Ltd (1972) 127 CLR 253 Uniline Australia Ltd (ACN 010 752 057) v Sbriggs Pty Ltd (ACN 007 415 518) and Another (No 2) [2009] FCA 920; (2009) 82 IPR 56 Vacuum Oil Company Pty Ltd v Wiltshire (1945) 72 CLR 319 at 324; [1946] ALR 50 Viscariello v Macks [2010] SASC 2 Wentworth v Wentworth (unreported, 21 February 1996) Westport Insurance Corporation & Ors v Gordian Runoff Ltd [2011] HCA 37; (2011) 281 ALR 593 Westport Insurance Corporation v Gordian Runoff Ltd [2009] NSWSC 245 Windsurfing International Incorporated v Petit (1987) AIPC 90-441 Texts Cited: Cross on Evidence (online edn) Groves, 'The implied undertaking restricting the use of material obtained during legal proceedings' (2003) 23 Australian Bar Review 314 Handley, Estoppel by Conduct and Election Heydon and Leeming, Jacobs' Law of Trusts in Australia (7th edn) Ritchie's Uniform Civil Procedure (online edn) Category: Principal judgment Parties: Sapphire (SA) Pty Ltd (trading as River City Grain) (Plaintiff) Barry Smith Grains Pty Ltd (in liq) (First Defendant) David John Kerr and Peter William Marsden (in their capacities as joint and several liquidators of the first defendant and as receivers and managers of the property of the Barry Smith Family Trust and Barry Smith Family Trust No 2) (Second Defendant) Representation: Counsel J A Watson with Ms F T Roughley (Plaintiff) M T McCulloch SC (Defendants) Solicitors Eastern Bridge Pty Ltd (Plaintiff) Henry Davis York (Defendants) File Number(s): 11/149286