Rectron Australia BV v Lu [2014] NSWSC 1367

Supreme Court New South Wales

Medium Neutral Citation: Rectron Australia BV v Lu [2014] NSWSC 1367 Hearing dates: 2 October 2014 Decision date: 03 October 2014 Jurisdiction: Equity Division - Commercial List Before: Lindsay J Decision: Declaratory and Injunctive relief granted to plaintiffs to enforce a release of rights granted in a Deed of Settlement pursuant to which earlier proceedings had been determined, and in disregard of which the defendant maintained proceedings in Taiwan. Catchwords: CONTRACT - Deed of Settlement - Release - Implied obligation of releasor not to derogate from grant of release, and not to prevent fulfilment of purpose of release - Negative contractual stipulation analogous to implied covenant not to sue - Enforceable by injunction.

CONFLICT OF LAWS - Anti-suit injunction - Foreign proceedings maintained in breach of Australian contract - Injunction granted to restrain breach of contract. Legislation Cited: Corporations Act 2001 Cth, ss 232, 233, 461(1)(g) and 461(1)(k)) Jurisdiction of Courts (Cross Vesting) Act 1987 NSW Cases Cited: CSR Limited v Signa Insurance Australia Limited (1997) 189 CLR 345, 392 Lange v Australian Broadcasting Corporation (1997) 189 CLR 520 at 562-563 McDermott v Black (1940) 63 CLR 161 at 187-189 MRT Performance Pty Limited v Mastro Motors Inc [2005] NSWSC 316 at [17]-[25] O'Keefe v Williams (1910) 11 CLR 171 at 191 Rectron Australia BV v Lu; Re Rectron Electronics Pty Limited [2013] VSC 384 at [14] Shepherd v Felt & Textiles of Australia Limited (1931) 45 CLR 359 Service Station Association v Berg Bennett (1993) 45 FCR 84 at 92-94 Toll (FGCT) Pty Limited v Alpha Pharm Pty Limited (2004) 219 CLR 165 Voth v Manildra Flour Mills Pty Limited (1990) 171 CLR 538 Texts Cited: Andrew Bell and Justin Gleeson "The Anti-Suit Injunction" (1997) 71 Australian Law Journal 955 RP Meagher, JD Heydon and MJ Leeming (eds), Meagher, Gummow and Lehane's Equity: Doctrines and Remedies (4th ed, 2002), paragraph [21]-[205] Category: Principal judgment Parties: Rectron Australia BV (First Plaintiff) Chih-Hsing (David) Kan (Second Plaintiff) Yi-Chen (Ariel) Yeh (Third Plaintiff) Chien-Min Lu (Defendant) Representation: Counsel: Dr C Birch SC and Ms K Dawson (Plaintiffs) Mr B Ryde (Defendant) Solicitors: Deutsch Miller, Sydney (Plaintiffs) McDonald Murholme, Melbourne (Defendant) File Number(s): 2014/00252922