Telesto Investments Ltd & ors v UBS AG [2012] NSWSC 44

Supreme Court New South Wales

Medium Neutral Citation: Telesto Investments Ltd & ors v UBS AG [2012] NSWSC 44 Hearing dates: 21 November 2011 Decision date: 07 February 2012 Jurisdiction: Equity Division - Commercial List Before: Ward J Decision: Temporary stay to be granted of the proceedings in this Court, pending the outcome of matters in other proceedings in Singapore in relation to the same controversy. Form of orders to be determined after further submissions. Catchwords: CONFLICT OF LAWS - stay of proceedings - anti-suit injunction granted in Singapore - whether New South Wales is forum non conveniens - whether duplication of proceedings is vexatious or oppressive - whether commencing or continuing proceedings in New South Wales amounts to an abuse of process - whether enforceability of foreign judgment where non-monetary relief sought relevant to granting a stay

CONFLICT OF LAWS - stay of proceedings - principles of comity - where New South Wales proceedings commenced in breach of anti-suit injunction granted in Singapore - foreign anti-suit injunction a factor to be taken into account when exercising discretion to grant stay but not determinative

CONFLICT OF LAWS - choice of law - tort - misrepresentation - cross-border communications over telephone - law of jurisdiction where communication reasonably expected to be received is proper law of the misrepresentation

PROCEDURE - issue estoppel - foreign judgment as basis of estoppel - estoppel said to arise from finding in Singapore regarding question of forum non conveniens - different legal test for forum non conveniens in Singapore and Australia - precise identification of the legal issue - no issue estoppel in relation to forum non conveniens question - issue estoppel in relation to finding by Singapore court whether New South Wales proceedings vexatious and oppressive Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Fair Trading Act 1987 (NSW) Trade Practices Act 1974 (Cth) Cases Cited: Adam P Brown Male Fashions Proprietary Limited v Philip Morris Incorporated (1981) 148 CLR 170 Air Bus Industries GIE v Patel (1999) 1 AC 119 Allstate Life Insurance Co v Australia and New Zealand Banking Group Limited [1995] FCA 1563 Armacel Pty Ltd v Smurfit Stone Container Corp (2008) 248 ALR 573 Aussie Home Security Pty Ltd v Sales Systems Australia Pty Ltd (2000) 172 ALR 14 Barclays Bank plc v Homan [1993] BCLC 680 Batistatos v Roads and Traffic Authority (NSW) (2006) 226 CLR 256 Blair v Perpetual Trustee Co Ltd v Curran (Adam's Will) (1939) 62 CLR 464 British Airways Board v Laker Airways Limited [1985] 1 AC 58 (HL) Carl Zeiss Stiftung v Rayner & Keeler Ltd (No 2) [1967] AC 853 Castillon v P&O Ports Ltd [2007] QCA 364 Champerslife Pty Ltd v Manojlovski & Anor [2010] NSWCA 33 Christie v Baker (1996) 2 VR 582 Commonwealth v Cockatoo Dockyard Pty Ltd [2003] NSWCA 192 Commonwealth Bank of Australia v White [1999] 2 VR 681 Commonwealth Bank of Australia v White [No 3] [2000] VSC 259 Commonwealth Bank of Australia v White [No 4] [2001] VSC 511 CSR Ltd v Cigna Insurance Australia Limited [1997] HCA 33; (1996-7) 189 CLR 345 DA Technology Australia Pty Limited v Discreet Logic Inc [1994] FCA 958 Delco Australia Pty Ltd v Equipment Enterprises Incorporated and Ors (2000) 100 FCR 385 Diamond v Bank of London and Montreal (1979) QB 333 Dow Jones & Co Inc v Gutnick (2002) 210 CLR 575 Ellerman Lines Limited v Read [1928] 2 KB 144 Fidelitas Shipping Co Ltd v V/O Exportchleb [1966] 1 QB 630 Garsec v Sultan of Brunei [2008] NSWCA 211; (2008) 250 ALR 682 Guardian Group Australia Pty Ltd v Alice Lu [2005] NSWSC 1299 Habib v 2UE Pty Ltd [2009] NSWCA 231 Henry v Henry (1996) 185 CLR 571 Hilton v Guyot (1895) 159 US 113 Hunter Grain Pty Ltd v Hyundai Merchant Marine Co Ltd (1993) 117 ALR 507 John Pfeiffer Pty Ltd v Rogerson (2000) 203 CLR 503 Kolden Holdings Ltd v Rodette Commerce Ltd [2008] 3 All ER 612 Kuligowski v Metrobus [2004] HCA 34; (2004) 220 CLR 363 Laker Airways Limited v Pan American World Airways (1983) 559 F Supp 1124 Laker Airways Limited v Sabena (1984) 731 F 2d 909 Laker Airways Limited v Pan American (1983) 577 F Supp 348 Ling v The Commonwealth (1996) 68 FCR 180 Maritime Insurance Co Ltd v Geelong Harbour Trust Commissioners (1908) 6 CLR 194 Newmont Yandal Operations Pty Ltd v J Aron Corporation [2007] NSWCA 195; (2007) 70 NSWLR 411 News Corporation v Lenfest Communications Inc [1996] NSWSC 474 Mala Pty Ltd v Johnston (1995) 13 ACLC 100 Moore v Inglis (1976) 9 ALR 509 Oceanic Sun Line Special Shipping Co Inc v Fay (1988) 165 CLR 197 Port of Melbourne Authority v Anshun Pty Ltd [1981] HCA 45; 147 CLR 589 Puttick v Tenon Ltd [2008] HCA 54; (2008) 238 CLR 265 Ramsey v Vogler [2000] NSWCA 260 Regie Nationale des Usines Renault SA v Zhang [2002] HCA 10; (2002) 210 CLR 491 Reichel v Magrath (1989) 14 App Cas 665 Ridgeway v The Queen (1995) 184 CLR 19 Rippon v Chilcotin Pty Ltd [2001] NSWCA 142 Rocklea Spinning Mills Pty Limited v Consolidated Trading Corporation [1995] VSC 15; [1995] 2 VR 181 Rogers v The Queen (1994) 181 CLR 251 Roy Morgan Research Centre Pty Ltd v Wilson Market Research Pty Ltd (1996) 39 NSWLR 311 Sadler v Robins (1808) 170 ER 948 Slough Estates Ltd v Slough Borough Council [1968] Ch 299 Society of Lloyd's v White [2004] VSCA 101 Spiliada Maritime Corporation v Cansulex Ltd [1987] AC 460 State Bank of NSW Ltd v Stenhouse Ltd (1997) Aust Torts Rep 81-423 Sterling Pharmaceuticals Pty Ltd v The Boots Company (Aust) Pty Ltd (1992) 34 FCR 287 Tiufino v Warland (2000) 50 NSWLR 104 Thames Launches Ltd v Trinity House Corporation of Deptford Strond [1961] Ch 197 The Daeyang Honey [1993] FCA 584 The Sennar (No 2) [1985] 1 WLR 490 (HL) Thoday v Thoday [1964] P 181; [1964] 1 All ER 341; [1964] 2 WLR 371 Turner v Grovit [2002] 1 WLR 107 (HL) UBS AG v Telesto Investments Pty Ltd [2011] SGHC 170 United Pacific Finance Pty Ltd v Tarrant [2009] NSWSC 630 Voth v Manildra Flour Mills Pty Ltd [1990] HCA 55; (1990) 171 CLR 538 Williams v Society of Lloyd's (1994) 1 VR 274 Zavodnyik v Alex Constructions Pty Ltd (2005) 67 NSWLR 457 Texts Cited: Collins, Dicey, Morris and Collins on The Conflict of Laws (14th ed, 2006) Davies, Bell and Brereton, Nygh's Conflict of Laws in Australia (8th ed, 2010) Handley, Res Judicata: General Principles and Recent Developments (1999) Mortensen, Private International Law in Australia (2006) Spencer Bower, Turner and Handley, The Doctrine of Res Judicata (3rd ed, 1996) Category: Interlocutory applications Parties: Telesto Investments Ltd (First Plaintiff) Scott Francis Tyne (Second Plaintiff) ACN 074 921 109 Pty Ltd as trustee of the Argot Unit Trust (Third Plaintiff) UBS AG (Defendant) Representation: Counsel R Stitt QC (Plaintiffs) J Stoljar SC with L Livingston (Defendant) Solicitors Eakin McCaffery Cox (Plaintiffs) Mallesons Stephen Jaques (Defendant) File Number(s): 10/363808