Inghams Enterprises Pty Limited v Hannigan [2020] NSWCA 82

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Inghams Enterprises Pty Limited v Hannigan [2020] NSWCA 82 Hearing dates: 11 December 2019 Date of orders: 04 May 2020 Decision date: 04 May 2020 Before: Bell P at [1]; Meagher JA at [118]; Gleeson JA at [158] Decision: (1) Grant leave to appeal.

(2) Allow the appeal.

(3) Set aside orders (1) and (3) made by Slattery J on 16 September 2019.

(4) Declare that the dispute the subject of the respondent's Notice of Dispute dated 29 May 2019 is not required to be submitted to arbitration pursuant to cl 23.6 of the Queensland Broiler Chicken Growing Agreement between the parties dated 22 September 2015.

(5) The respondent pay the appellant's costs of the proceedings at first instance and on appeal. Catchwords: ARBITRATION – multi-tiered dispute resolution clause – clause included as a component an arbitration clause for certain types of disputes – proper construction of arbitration clause and its scope – principles applicable to the construction of such clauses.

CONTRACT – dispute resolution clause – clause contemplating court proceedings in some circumstances and arbitration proceedings in other circumstances – proper construction of the clause – whether a claim for damages for breach of contract "concerned" a "monetary amount payable and/or owed" "under" the agreement. CONTRACT – construction and interpretation – multi-tiered dispute resolution clause – principles applicable to construction of dispute resolution clauses.

CONTRACT – waiver – whether commencement of earlier court proceedings seeking declarations as to breach of contract resulted in waiver of right to submit claim for damages for breach of contract to arbitration. Legislation Cited: Civil Procedure Act 2005 (NSW) s 26(1) Foreign States Immunities Act 1985 (Cth) s 11(1) Income Tax Assessment Act 1936 (Cth) s 160U(3) International Arbitration Act 1974 (Cth) Jurisdiction of Courts (Cross-Vesting) Act 1987 (NSW) s 5(7) Land Title Act 1994 (Qld) s 62 Supreme Court Act 1970 (NSW) s 101(2)(r) Cases Cited: AAP Industries Pty Limited v Rehaud Pte Limited [2015] NSWSC 468 Ace Insurance Ltd v Moose Enterprise Pty Ltd [2009] NSWSC 724 Akai Pty Ltd v People's Insurance Co Ltd (1996) 188 CLR 418; [1996] HCA 39 Armacel Pty Ltd v Smurfit Stone Container Corporation (2008) 248 ALR 573; [2008] FCA 592 Attorney General for New South Wales v Melco Resorts & Entertainment Limited [2020] NSWCA 40 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99; [1973] HCA 36 Australian Health & Nutrition Association Ltd v Hive Marketing Group Pty Ltd (2019) 99 NSWLR 419; [2019] NSWCA 61 Australian Securities Commission v Lord (1991) 33 FCR 144; (1991) 105 ALR 347 BHPB Freight Pty Ltd v Cosco Oceania Chartering Pty Ltd (2008) 168 FCR 169; [2008] FCA 551 Cape Lambert Resources Ltd v MCC Australia Sanjin Mining Pty Ltd [2013] WASCA 66; (2013) 298 ALR 666 Castlemaine Tooheys Ltd v Carlton & United Breweries Ltd (1987) 10 NSWLR 468 Cell Tech Communications Pty Ltd v Nokia Mobile Phones (UK) Ltd (1995) 58 FCR 365 Chan v Cresdon Pty Ltd (1989) 168 CLR 242; [1989] HCA 63 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Comandate Marine Corporation v Pan Australia Shipping Pty Ltd (2006) 157 FCR 45; [2006] FCAFC 192 Commissioner of Taxation (Cth) v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520; [2000] HCA 35 Commonwealth v Amann Aviation Pty Ltd (1992) 174 CLR 64; [1991] HCA 54 Concut Pty Ltd v Worrell (2000) 75 ALJR 312; [2000] HCA 64 Continental Bank NA v Aeakos Compania Naviera SA [1994] 1 WLR 588 Corporate Affairs Commission (SA) v Australian Central Credit Union (1985) 157 CLR 201; [1985] HCA 64 Electra Air Conditioning BV v Seeley International Pty Ltd [2008] FCAFC 169 Electricity Generation Corporation v Woodside Energy Ltd; Woodside Energy Ltd v Electricity Generation Corporation (2014) 251 CLR 640; [2014] HCA 7 Energy Resources of Aust Ltd v Commissioner of Taxation (2003) 52 ATR 120 FAI General Insurance Co Ltd v Ocean Marine Mutual Protection & Indemnity Association (1997) 41 NSWLR 117 Faxtech Pty Ltd v ITL Optronics Ltd [2011] FCA 1320 Fiona Trust & Holding Corporation v Privalov [2007] UKHL 40; [2007] 4 All ER 951 Firebird Global Master Fund II Ltd v Republic of Nauru (2015) 258 CLR 31; [2015] HCA 43 Francis Gregory Hannigan v Inghams Enterprises Pty Limited [2019] NSWSC 321 Francis Travel Marketing Pty Ltd v Virgin Atlantic Airways Ltd (1996) 39 NSWLR 160; (1996) 131 FLR 422 Galafassi v Kelly (2014) 87 NSWLR 119 Gaynor v Attorney General of New South Wales [2020] NSWCA 48 Global Partners Fund Limited v Babcock & Brown Limited (in liq) [2010] NSWCA 196; (2010) 79 ACSR 383 Grocon Constructors (Victoria) Pty Ltd v APN DF2 Project 2 Pty Ltd [2015] VSCA 190 Hancock Prospecting Pty Ltd v Rinehart (2017) 257 FCR 442; [2017] FCAFC 170 Harding v Wealands [2007] 2 AC 1; [2006] UKHL 32 Hi-Fert Pty Ltd v Kiukiang Maritime Carriers (No 5) (1998) 90 FCR 1; (1998) 159 ALR 142 HIH Casualty & General Insurance Ltd (in liq) v RJ Wallace (2006) 68 NSWLR 603; [2006] NSWSC 1150 IBM Australia Ltd v National Distribution Services Ltd (1991) 22 NSWLR 466; (1991) 100 ALR 361 Inghams Enterprises Pty Ltd v Francis Gregory Hannigan [2019] NSWSC 1186 Insigma Technology Co Ltd v Alstom Technology Ltd [2009] 3 SLR 936 JTA Le Roux Pty Ltd as trustee for the FLR Family Trust v Lawson [2013] WASC 293 Kraft Foods Group Brands LLC v Bega Cheese Limited (2018) 358 ALR 1; [2018] FCA 549 Lainson Holdings Pty Ltd v Duffy Kennedy Pty Ltd [2017] NSWSC 203 Mann v Paterson Constructions Pty Ltd [2019] HCA 32; (2019) 93 ALJR 1164 Mastrobuono v Shearson Lehman Hutton Inc. 514 U.S. 52 (1995) McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579; [2000] HCA 65 Mineral Resources Ltd v Pilbara Minerals Ltd [2016] WASC 338 Mitsubishi Motors Corp v Soler-Chrysler Plymouth Inc 473 US 614 (1985) Mobis Parts Australia Pty Ltd v XL Insurance Company SE [2016] NSWSC 1170 Morris-Garner v One Step (Support) Ltd [2019] AC 649; [2018] UKSC 20 Moschi v Lep Air Services Ltd [1973] AC 331; [1972] 4 WLUK 46 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Paharpur Cooling Towers Ltd v Paramount (WA) Ltd [2008] WASCA 110 Paper Products Pty Ltd v Tomlinsons (Rochdale) Limited (1993) 43 FCR 439; [1993] FCA 346 Parnell Manufacturing Pty Ltd v Lonza Ltd [2017] NSWSC 562 Perovich v Whitton (No 2) (2016) 250 FCR 272; [2016] FCAFC 152 Photo Production Ltd v Securicor Transport Ltd [1980] AC 827; [1980] 2 WLUK 146 Plenary Research Pty Ltd v Biosciences Research Centre Pty Ltd [2013] VSCA 217 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589; [1981] HCA 45 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 PT Garuda Indonesia Ltd v Australian Competition and Consumer Commission [2011] FCAFC 52 Queensland Premier Mines Pty Ltd v French (2007) 235 CLR 81; [2007] HCA 53 Recyclers of Australia Pty Ltd v Hettinga Equipment Inc (2000) 100 FCR 420; [2000] FCA 547 Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13; (2019) 366 ALR 635 Rinehart v Rinehart (No 3) (2016) 257 FCR 310 Rinehart v Welker (2012) 95 NSWLR 221; [2012] NSWCA 95 Robinson v Harman (1848) 1 Exch 850; 154 ER 363 Rotheberger Australia Pty Ltd v Poulsen [2003] NSWSC 788 Royal Bank of Scotland plc v Babcock & Brown DIF III Global Co-Investment Fund LP [2017] VSCA 138 Samick Lines Co Ltd v Owners of the "Antonis P Lemos" [1985] AC 711 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332; [1990] HCA 8 TCL Air Conditioner (Zhongshan) Co Ltd v Judges of the Federal Court of Australia (2013) 251 CLR 533; [2013] HCA 5 Tea Trade Properties Ltd v CIN Properties Ltd (1990) 1 EGLR 155 The Queen v Khazal (2012) 246 CLR 601; [2012] HCA 26 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Zhu v Treasurer of the State of New South Wales (2004) 218 CLR 530; [2004] HCA 56 Texts Cited: G B Born, International Commercial Arbitration (2nd ed, 2014, Wolters Kluwer) A Briggs, Agreements on Jurisdiction and Choice of Law (2007, Oxford University Press) M Davies (ed), Jurisdiction and Forum Selection Clauses in International Maritime Law (2005, Kluwer Law International) M Davies, A S Bell, P L G Brereton and M Douglas, Nygh's Conflict of Laws in Australia (10th ed, 2019, LexisNexis Butterworths) D W Greig and J L R Davis, The Law of Contract (1987, The Law Book Company Limited) J D Heydon, Heydon on Contract (2019, Lawbook Co) D Joseph, Jurisdiction and Arbitration Agreements and their Enforcement (3rd ed, 2015, Sweet & Maxwell) K Lewison, The Interpretation of Contracts (5th ed, 2011, Sweet & Maxwell) K Lewison, The Interpretation of Contracts (6th ed, 2015, Sweet & Maxwell) Category: Principal judgment Parties: Inghams Enterprises Pty Limited (Applicant) Francis Gregory Hannigan (Respondent) Representation: Counsel: P S Braham SC, D Neggo (Applicant) M S Henry SC (Respondent)