Rinehart v Rinehart [2020] NSWSC 68

Supreme Court New South Wales

Medium Neutral Citation: Rinehart v Rinehart [2020] NSWSC 68 Hearing dates: 15-19, 23, 25 July 2019 Date of orders: 14 February 2020 Decision date: 14 February 2020 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Pursuant to s 8(1) of the Commercial Arbitration Act (NSW) and s 8(1) of the Commercial Arbitration Act (WA), refer the parties to arbitration of the disputes the subject of this proceeding other than the claim for relief pursuant to s 247A of the Corporations Act 2001 (Cth). 2. Stay the balance of the proceeding pending determination of the arbitration of the disputes so referred to arbitration in accordance with order 1. 3. Stay the following motions pending the determination of the said arbitration: notice of motion filed on 27 April 2017 by Bianca (referred to in these reasons as motion (ii)); notice of motion filed on 14 August 2018 by Gina (referred to in these reasons as motion (vii)); notice of motion filed on 11 June 2019 by Bianca (referred to in these reasons as motion (viii)); and notice of motion filed on 20 June 2019 by HPPL (referred to in these reasons as motion (ix)). 4. By consent, adjourn sine die notice of motion filed on 12 May 2007 by Bianca (referred to in these reasons as motion (iv)) 5. Direct the parties to file brief written submissions as to costs within 14 days with a view to determining that issue on the papers. 6. Direct the parties to file brief written submissions within 14 days as to whether (if that be the case) they oppose the referral of this matter (on the Court's own motion) to mediation; and, in any event, as to the appropriate time frame within which any such mediation may expeditiously take place. Catchwords: COMMERCIAL ARBITRATION – arbitration agreement – application for referral to arbitration pursuant to commercial arbitration legislation and for stay of proceeding – alternative applications for stay based on case management principles and as abuse of process – held proceeding involved matters under the arbitration agreement and parties must be referred to arbitration – whether application for access to books and records of company under s 247A Corporations Act was matter under arbitration agreement and was arbitrable – held s 247A application not a matter under arbitration agreement but should be stayed – stay of other motions including unconscionability motion in which anti-arbitration injunction sought – intention of Court to refer parties to mediation Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56, 67 Commercial Arbitration Act 2010 (NSW), ss 1C, 2, 5, 7, 8, 16 Commercial Arbitration Act 2012 (WA), ss 2, 5, 7, 8, 16 Corporations Act 2001 (Cth), ss 233, 241, 247A, 254T, 1317H Court Suppression and Non-publication Orders Act 2010 (NSW) Evidence Act 1995 (NSW), s 91 International Arbitration Act 1974 (Cth), s 16(1) International Commercial Arbitration Act 1986 (BC), s 8 Trustees Act 1962 (WA), ss 78, 85(1) UNCITRAL Model Law on International Commercial Arbitration Cases Cited: Aberdeen Railway Co v Blaikie Bros (1854) 1 Macq 461; [1843-60] All ER Rep 249 ABN Amro Bank Canada v Krupp MaK Maschinenbau GmhH (1994) 21 OR (3d) 511 ACD Tridon Inc v Tridon Australia Pty Ltd [2002] NSWSC 896 ACES Sogutlu Holdings Pty Ltd (in liq) v Commonwealth Bank of Australia (2014) 89 NSWLR 209; 2014 NSWCA 402 ALYK (HK) Limited v Caprock Commodities Trading Pty Ltd [2015] NSWSC 1006 Amcor Packaging (Australia) Pty Ltd v Baulderstone Pty Ltd [2013] FCA 253 AMP Capital Investors Pty Ltd v Parsons Brinckerhoff Australia Pty Ltd [2013] NSWSC 1633 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Friendly Society Ltd (2018) 92 ALJR 918; [2018] HCA 43 Anglas Law Services v Pty Ltd (in liq) v Carabelas (2005) 226 CLR 507; [2005] HCA 23 Anthony v Morton [2018] NSWSC 1884 Aon Risk Services Australia Ltd v Australian National University (2009) 239 CLR 175; [2009] HCA 27 Apotex Pty Ltd v Les Laboratoires Servier (No 6) [2012] FCA 745 Appleton Papers Inc v Tomasetti Paper Pty Ltd [1983] 3 NSWLR 208 Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485; [1993] HCA 15 Barescape Pty Ltd v Bacchus Holdings (No 9) [2012] NSWSC 984 Batistatos v Roads and Traffic Authority of New South Wales (2006) 226 CLR 256; [2006] HCA 27 Bianca Hope Rinehart as trustee of The Hope Margaret Hancock Trust [2017] NSWSC 282 Birtchnell v Equity Trustees, Executors and Agency Co Ltd (1929) 42 CLR 384; [1929] HCA 24 Boart Sweden AB v NYA Stromnes AB (1988), 41 BLR. 295 (Ont HCJ) Borowski v Heinrich Fiedler Perforiertechnik GmbH and Another [1996] ILPr 373 Bowes v Chaleyer (1923) 32 CLR 159; [1923] HCA 15 Branir Pty Ltd v Wallco Pastoral Co Pty Ltd [2006] NTSC 70; (2006) 203 FLR 115 Broadwater Hospitality Management Pty Ltd v Primewest (Lot 4 Davidson Street Kalgoorlie) Pty Ltd [2010] WASCA 174 BTR Engineering (Australia) Ltd v Dana Corporation [2000] VSC 246 BTY v BUA [2018] SGHC 213 Cape Lambert Resources Ltd v MCC Australia Sanjin Mining Pty Ltd [2013] WASCA 66; (2013) 298 ALR 666 Carter Holt Harvey Woodproducts Australia Pty Ltd v The Commonwealth [2019] HCA 20 Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36 Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd [1993] AC 334 Chief Commissioner of State Revenue v CCM Holdings Trust Pty Ltd [2014] NSWCA 42 Clarke Boyce v Bouat [1994] 1 AC 428 Codelfa Constructions Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 at 352; [1982] HCA 24 Comandate Marine Corp v Pan Australian Shipping Pty Limited (2006) 157 FCR 45; [2006] FCAFC 192 Comcare v PVYW (2013) 250 CLR 246; [2013] HCA 41 Commissioner of State Revenue v Aidlaw Pty Ltd (No 2) [2010] VSC 405 Commonwealth v Cockatoo Dockyard Pty Ltd [2003] NSWCA 19 Conlan v The Executor or other Personal Representative as Executor of the Estate of Anthony John Croci [2009] WASC 266 CPB Contractors Pty Ltd v JKC Australia LNG Pty Ltd (No 2) [2017] WASCA 123 Crossman v Sheahan (2016) 115 ACSR 130; [2016] NSWCA 200 CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345 Czarnikow v Roth, Schmidt and Company [1922] 2 KB 478 Disctronics Ltd v Edmonds [2002] VSC 454; (2002) 86 ATR 753 Dobbs v National Bank of Australasia Limited (1935) 53 CLR 643 at 652; [1935] HCA 49 Duncan v Independent Commission Against Corruption [2016] NSWCA 143 EKU17 v Minister for Immigration and Border Protection [2019] FCA 782 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Farrant v Blanchord (1863) 1 De G J & B 107 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd [2001] NSWCA 97; (2001) 37 ACSR 672 Fibreco Pulp Inc v The Star Dover (1998) 145 FTR 125 Fiona Trust & Holding Corporation v Privalov [2007] UKHL 40; [2007] 4 All ER 951 Fitzpatrick v Emerald Grain Pty Ltd [2017] WASC 206 Flint Ink NZ Ltd v Huhtamaki Australia Pty Ltd (2014) 44 VR 64; [2014] VSCA 166 Francis Travel Marketing Pty Limited v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160 Fulham Football Club (1987) Ltd v Richards [2011] EWCA Civ 855; [2012] 1 All ER 414 Global Partners Fund Limited v Babcock & Brown Limited (In liq) [2010] NSWCA 196; (2010) 79 ACSR 383 Government Insurance Office (NSW) v Atkinson-Leighton Joint Venture (1981) 146 CLR 206; [1981] HCA 9 Gray v Hart [2012] NSWSC 1435 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Guardian Group Australia Pty Ltd v Lu [2005] NSWSC 1299 Gulf Canada Res. Ltd v Arochem International Ltd., Arochem International, Inc (1992) 66 BCLR 2d 113 (BC Ct App) Hancock Prospecting Pty Ltd v Rinehart (2017) 257 FCR 442; [2017] FCAFC 170 Hancock v Rinehart (Trust Documents) [2018] NSWSC 1684 Hancock v Rinehart [2013] NSWSC 1352 Hancock v Rinehart [2015] NSWSC 646; (2015) 106 ACSR 207 Hancock v Rinehart [2016] NSWSC 12 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Helvetic Investment Corporation Pty Ltd v Knight (1984) 9 ACLR 773 Henry v Henry (1996) 185 CLR 571; [1996] HCA 51 Henry v Henry; Thirteenth Corp Pty Ltd v State [2006] FCA 979; (2006) 232 ALR 491 Hope Rinehart as trustee of The Hope Margaret Hancock Trust [2017] NSWSC 282 Horsell International Pty Ltd v Divetwo Pty Ltd [2013] NSWCA 368; (2013) ANZ Ins Cas 61-991 House v The King (1936) 55 CLR 499; [1936] HCA 40 Humphrey v Olver (1859) 28 LJ (Ch) 406 IBM Australia Ltd v National Distribution Services Ltd (1991) 22 NSWLR 466 In re Wright; Hegan v Bloor [1920] 1 Ch 108 In the matter of Combined Projects (Arncliffe) Pty Ltd [2018] NSWSC 649 In the matter of Sirrah Pty Ltd [2017] NSWSC 1683 In the matter of Style Ltd, Merim Pty Ltd v Style Ltd [2009] FCA 314; 255 ALR 63 In the matter of Treadtel International Pty Ltd [2014] NSWSC 1406 In the matter of Webuidem Pty Ltd [2012] NSWSC 708 International Swimwear Logistics Ltd v Australian Swimwear Company Pty Ltd [2011] NSWSC 488 Jacob v Utah Construction & Engineering Pty Ltd (1966) 116 CLR 200; [1966] HCA 67 Jeffery and Katauskas Pty Ltd v SST Consulting Pty Ltd (2009) 239 CLR 75; [2009] HCA 43 Johnson v American Home Assurance Co (1998) 192 CLR 266; [1998] HCA 14 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Kaverit Steel & Crane Ltd v Kone Corp. (1992), 87 DLR (4th) 129, 85 Alta LR (2d) 287 (CA) Keith Henry & Co Pty Ltd v Stuart Walker & Co Pty Ltd (1958) 100 CLR 342; [1958] HCA 33 Kraft Foods Group Brands LLC v Bega Cheese Ltd [2018] FCA 549 Larsen Oil and Gas Pte Ltd v Petroprod Ltd (in official liquidation in the Cayman Islands and in compulsory liquidation in Singapore) [2011] 3 SLR 414 Leerac Pty Ltd v Fay [2008] NSWSC 1082 Lidden Composite Buyers Ltd (1996) 67 FCR 560; (1996) 139 ALR 549 Lipman Pty Limited v Emergency Services Superannuation Board [2011] NSWCA 163 Macarthur Cook Fund Management Limited v Zhaofeng Funds Limited [2012] NSWSC 911 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Mala Pty Ltd v Johnston (1994) 13 ACLC 100 McDermott v Black (1940) 63 CLR 161 at 186-188; [1940] HCA 4 McLean v Burns Philp Trustee Co Pty Ltd (1985) 2 NSWLR 623 Mesa Minerals Ltd v Mighty River International Ltd (2016) 241 FCR 241; [2016] FCAFC 16 Michael Wilson & Partners Limited v Nicholls (2011) 244 CLR 427; [2011] HCA 48 Miller v Cameron (1936) 54 CLR 572; [1936] HCA 13 Minister Administering National Parks & Wildlife Act 1974 v Halloran (2004) 12 BPR 22, 391 Moore v Inglis (1976) 9 ALR 509 Muir v City of Glasgow Bank [1879] 4 App Cas 337 Muschinski v Dodds (1985) 160 CLR 583 National Mutual Holdings Pty Ltd v Sentry Corp (1989) 22 FCR 209 O'Reilly v Law Society of New South Wales (1988) 24 NSWLR 204 Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 Oliver Hume South East Queensland Pty Ltd v Investa Residential Group Pty Ltd (2017) 259 FCR 43; [2017] FCA 141 Osborne v Amalgamated Society of Railway Servants [1909] 1 Ch 163 Paharpur Cooling Towers Ltd v Paramount (WA) Ltd [2008] WASCA 110 Papadopoulos v Hristofordis [2001] NSWCA 368 Pape v Commissioner of Taxation (2009) 238 CLR 1; [2009] HCA 23 Paper Products Pty Limited v Tomlinsons (Rochdale) Ltd & Ors (1993) 43 FCR 439 Perera v GetSwift Ltd (2018) 263 FCR 1; [2018] FCA 732 Perera v GetSwift Ltd (2018) 263 FCR 92; [2018] FCAFC 202 Praetorin Pty Ltd v TZ Ltd [2009] NSWSC 1237; 76 ACSR 236 Proctor v Jetway Aviation Pty Ltd [1984] 1 NSWLR 166 Provident Capital Ltd v Zone Developments Pty Ltd [2001] NSWSC 843 Ratcliffe v Watters (1969) 89 WN (Pt 1) (NSW) 497 Re French Caledonia Travel Service Pty Ltd (in liq) (2003) 59 NSWLR 361; [2003] NSWSC 1008 Re Infinite Plus Pty Ltd (2017) 95 NSWLR 282; [2017] NSWSC 470 Re McGrath & Anor (In their capacity as liquidators of HIH Insurance Limited) (2010) 78 ACSR 405; [2010] NSWSC 404 Recyclers of Australia Pty Ltd v Hettinga Equipment Inc (2000) 100 FCR 420; [2002] FCA 547 ResMed Limited v Australian Manufacturing Workers Union (No 2) (2015) 243 FCR 366; [2015] FCA 537 Rinehart atf The Hope Margaret Hancock Trust v Rinehart [2017] NSWSC 803 Rinehart v Hancock [2013] NSWCA 326 Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13; (2019) 93 ALJR 582 Rinehart v Rinehart (No 3) (2016) 257 FCR 310; [2016] FCA 539 Rinehart v Rinehart [2018] NSWSC 1102 Rinehart v Welker (2012) 95 NSWLR 221; [2012] NSWCA 95 Rinehart v Welker (2011) 93 NSWLR 311; [2011] NSWCA 403 Robotunits Pty Ltd v Mennel (2015) 49 VR 323; [2015] VSC 268 Rochfort v John Fairfax & Son Ltd [1972] 1 NSWLR 16 Rogers v The Queen (1994) 181 CLR 251; [1994] HCA 42 Roy Morgan Research Center Pty Ltd v Wilson Market Research Pty Ltd (1996) 39 NSWLR 311 Rye v Rye [1962] AC 496 Samick Lines Co Ltd v Owners of the Antonis P Lemos [1985] AC 711 Siemens Ltd v Origin Energy Uranquinty Power Pty Ltd (2011) 80 NSWLR 398; [2011] NSWSC 195 Slough Estates Ltd v Slough Borough Council [1968] Ch 299 Spellson v George (1992) 26 NSWLR 666; [1992] NSWCA 254 St George Bank Ltd v Federal Commissioner of Taxation (2009) 176 FCR 424; [2009] FCAFC 62 Sterling Pharmaceuticals Pty Ltd v Boots Co (Aust) Pty Ltd (1992) 34 FCR 287 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332; [1990] HCA 8 Tanwar Enterprises Pty Ltd v Cauchi (2003) 217 CLR 315; [2003] HCA 57 TCL Airconditioner (Zhongshan) Co Ltd v Castel Electronics Pty Limited [2009] VSC 553 Thames Launches Ltd v Trinity House Corporation of Deptford Strond [1961] Ch 197 Thirteenth Corp Pty Ltd v State [2006] FCA 979; (2006) 232 ALR 491 Toll (FGCT) Pty Limited v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Tomlinson v Ramsey Food Processing Pty Ltd (2015) 256 CLR 507; [2015] HCA 28; 89 ALJR 750 Tomolugen Holdings Ltd and another v Silica Investors Ltd [2016] 1 SLR 373 Trade Fortune Inc v Amalgamated Mill Supplies Limited [1995] ILPr 370 (Supreme Court of British Columbia) Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107; [1988] HCA 44 Tyne v UBS AG (No 3) (2016) 236 FCR 1; [2016] FCA 5 UBS AG v Tyne [2018] HCA 45; (2018) 92 ALJR 968; 360 ALR 184 United Pacific Finance Pty Ltd v Tarrant [2009] NSWSC 630 Viro v R (1978) 141 CLR 88; [1978] HCA 9 Voth v Manildra Flour Mills Pty Ltd (1990) 171 CLR 538; [1990] HCA 55 Walter Rau Neusser Oel und Fett AG v Cross Pacific Trading Ltd [2005] FCA 1102 Walton v Gardiner (1993) 177 CLR 378; [1993] HCA 77 WDR Delaware Corporation v Hydrox Holdings Pty Ltd (2016) 245 FCR 452; [2016] FCA 1164 Welker & Ors v Rinehart & Anor (No 2) [2011] NSWSC 1238 Welker v Rinehart (No 4) [2011] NSWSC 1636 Western Export Services Inc v Jireh International Pty Limited [2011] HCA 45; (2011) 86 ALJR 1 Williams v Scott [1900] AC 499 Williams v Spautz (1992) 174 CLR 509; [1992] HCA 34 WorkCover Corporation v Jakas (2003) 86 SASR 20; [2003] SASC 155 Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd (No 10) [2018] WASC 407 Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd (No 9) [2018] WASC 122 Yarra Australia Pty Ltd v Oswal (No 2) [2013] WASCA 187 Young v Murphy [1996] 1 VR 279 Texts Cited: B Lincoln, "The Role of the Courts: Enforcement of Arbitration Awards and Antiarbitration Injunctions" in International Commercial Litigation and Dispute Resolution (2010, Ross Parsons Centre of Commercial, Corporate and Taxation Law) D Joseph, Jurisdiction and Arbitration Agreements and their Enforcement (3rd ed, 2015, Sweet & Maxwell) G Born, in International Commercial Arbitration (2009, Wolters Kluwer, Vol 1) Lord Collins of Mapesbury and J Harris, Dicey, Morris and Collins on the Conflict of Laws (15th ed, 2012, Sweet & Maxwell) P Finn, Fiduciary Obligations (2016, Federation Press) RP Meagher, JD Heydon and MJ Leeming, Equity: Doctrines and Remedies (4th ed, 2002, LexisNexis Butterworths) T Cohen QC and M Staff, "The Arbitration of Trust Disputes" (1999) 7 Journal of International Trust and Corporate Planning 1 Category: Procedural and other rulings Parties: Bianca Hope Rinehart as trustee for the Hope Margaret Hancock Trust (Plaintiff) Georgina Hope Rinehart (First Defendant) Hancock Prospecting Pty Ltd (Second Defendant) Tadeusz Watroba (Third Defendant) Jay Elliot Newby (Fourth Defendant) Representation: Counsel: DFC Thomas SC with D Hume (Plaintiff) P Brereton SC with CN Bova and TE O'Brien (First, Third and Fourth Defendants) J Giles SC with C Colquhoun and C Mitchell (Second Defendant)