Federal Court of Australia Judgment: Rinehart v Rinehart (No 2) [2015] FCA 339

 
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Melbourne: Federal Court of Australia has issued the following press release:

FEDERAL COURT OF AUSTRALIA

Rinehart v Rinehart (No 2) [2015] FCA 339

Citation:

Rinehart v Rinehart (No 2) [2015] FCA 339

Parties:

BIANCA HOPE RINEHART and JOHN LANGLEY HANCOCK v GEORGINA HOPE RINEHART (IN HER PERSONAL CAPACITY, AS TRUSTEE OF THE HOPE MARGARET HANCOCK TRUST AND AS TRUSTEE OF THE HFMF TRUST), HANCOCK PROSPECTING PTY LTD (ACN 008 676 417), HANCOCK MINERALS PTY LTD (ACN 057 326 824), HANCOCK FAMILY MEMORIAL FOUNDATION LTD (ACN 008 499 312), TADEUSZ JOSEF WATROBA, WESTRAINT RESOURCES PTY LTD (ACN 009 083 783), HMHT INVESTMENTS PTY LTD (ACN 070 550 104), 150 INVESTMENTS PTY LTD (ACN 070 550 159), HOPE RINEHART WELKER, GINIA HOPE FRANCES RINEHART, MAX CHRISTOPHER DONNELLY (IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF THE LATE LANGLEY GEORGE HANCOCK), HOPE DOWNS IRON ORE PTY LTD (ACN 071 514 308), ROY HILL IRON ORE PTY LTD (ACN 123 722 038), MULGA DOWNS INVESTMENTS PTY LTD (ACN 132 484 050) and MULGA DOWNS IRON ORE PTY LTD (ACN 080 659 150)

File number

1124 of 2014

Judge

GLEESON J

Date of judgment:

13 April 2015

Catchwords:

PRACTICE AND PROCEDURE – application for discovery application by respondents for proceeding to be stayed and parties referred to arbitration – identification of issues to be determined on stay application – whether discovery order would facilitate the just resolution of the proceeding as quickly, inexpensively and efficiently as possible – whether discovery necessary for determination of issues in proceeding – whether discovery would deprive respondents of any right to an order that the parties be referred to arbitration – order for discovery made – Federal Court Rules 2011 1.32, 20.11 – Commercial Arbitration Act 2010 (NSW), s 8; Commercial Arbitration Act 2012 (WA), s 8

Legislation:

Commercial Arbitration Act 2010 (NSW) 1(1), 8, 16(1), 17(3)(b)

Commercial Arbitration Act 2012 (WA), 1(1), 8, 16(1), 17(3)(b)

Federal Court Rules 2011 1.32, 1.34, 20.11, 20.13, 20.15

Cases cited:

Alliance Craton Explorer Pty Ltd v Quasar Resources Pty Ltd (No 4) [2013] FCA 1044

Comandate Marine Corp v Pan Australia Shipping Pty Ltd [2006] FCAFC 192; (2006)

Comandate Marine Corp v Pan Australia Shipping Pty Ltd [2006] FCAFC 192; (2006)

Construction, Forestry, Mining & Energy Union v Rio Tinto Coal Australia Pty Ltd [2014] FCA 462

Fiona Trust & Holding Corporation v Privalov[2007] 4 All ER 951

Grant v John Grant & Sons Pty Ltd [1954] HCA 23; (1954) 91 CLR 112

Hancock v Rinehart [2013] NSWSC 1352; (2013) 96

Joint Stock Company “Aeroflot Russian Airlines” v Berezovsky[2013] 2 Lloyd’s Rep 242

Rinehart v Rinehart [2014] FCA 1241

Taylor v Saloniklis [2013]

Trade Practices Commission v CC (New South Wales) Pty Ltd (No 4) (1995) 58

Date of hearing:

2 April 2015

Place:

Sydney

Division:

GENERAL DIVISION

Category:

Catchwords

Number of paragraphs:

Counsel for the Applicants:

Mr CH Withers, Mr AM Hochroth and Mr PA Meagher

Solicitor for the Applicants:

Yeldham Price O’Brien Lusk

Counsel for the First Respondent:

Mr B McClintock SC and Mr S Lawrance

Solicitor for the First Respondent:

Speed and Stracey Lawyers

Counsel for the Second, Third, Fifth, Sixth, Seventh, Twelfth, Thirteenth and Fifteenth Respondents:

Hutley SC and Mr C Colquhoun

Solicitor for the Second, Third, Fifth, Sixth, Seventh, Twelfth, Thirteenth and Fifteenth Respondents:

Corrs Chambers Westgarth

Counsel for the Fourth, Eighth, Ninth, Tenth, Eleventh and Fourteenth Respondents:

The Fourth, Eighth, Ninth, Tenth, Eleventh and Fourteenth Respondents did not appear

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1124 of 2014

BETWEEN:

BIANCA HOPE RINEHART

First Applicant

JOHN LANGLEY HANCOCK

Second Applicant

GEORGINA HOPE RINEHART (IN HER PERSONAL CAPACITY, AS TRUSTEE OF THE HOPE MARGARET HANCOCK TRUST AND AS TRUSTEE OF THE TRUST)

First Respondent

HANCOCK PROSPECTING PTY LTD (ACN 008 676 417)

Second Respondent

HANCOCK MINERALS PTY LTD (ACN 057 326 824)

Third Respondent

HANCOCK FAMILY MEMORIAL FOUNDATION LTD (ACN 008 499 312)

Fourth Respondent

TADEUSZ JOSEF WATROBA

Fifth Respondent

WESTRAINT RESOURCES PTY LTD (ACN 009 083 783)

Sixth Respondent

INVESTMENTS PTY LTD (ACN 070 550 104)

Seventh Respondent

150 INVESTMENTS PTY LTD (ACN 070 550 159)

Eighth Respondent

HOPE RINEHART WELKER

Ninth Respondent

GINIA HOPE FRANCES RINEHART

Tenth Respondent

MAX CHRISTOPHER DONNELLY (IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF THE LATE LANGLEY GEORGE HANCOCK)

Eleventh Respondent

HOPE DOWNS IRON ORE PTY LTD (ACN 071 514 308)

Twelfth Respondent

ROY HILL IRON ORE PTY LTD (ACN 123 722 038)

Thirteenth Respondent

MULGA DOWNS INVESTMENTS PTY LTD (ACN 132 484 050)

Fourteenth Respondent

MULGA DOWNS IRON ORE PTY LTD (ACN 080 659 150)

Fifteenth Respondent

JUDGE

GLEESON J

DATE OF ORDER:

13 APRIL 2015

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

  1. The first and the secondthirdfifthsixthseventhtwelfththirteen fifteenth respondents (“the Respondents”) provide verified discovery of the following categories of documents within seven days

a.Documents created on or before 30 September 2003 recording or referring to any communication to or with the first applicant (“Ms Bianca Rinehart”the second applicant (“Mr Hancock” concerning clause 16.2(a) of the Porteous Settlement Deed (referred to in paragraph 16 of the submissions of the Respondents dated 23 December 2014), or any draft thereof

b.Documents created on or before 30 April 2005 recording or referring to any communication to or with Mr Hancock concerning clause 14 of the Deed of Obligation and Release (referred to in paragraph 359 of the Statement of Claim), or any draft thereof

c.Documents created on or before 31 August 2006 recording or referring to any communication to or with Ms Bianca Rinehart concerning clause 20 of the Hope Downs Deed (referred to in paragraph 275 of the Statement of Claim), or any draft thereof

d.Documents created on or before 30 April 2007 recording or referring to any communication to or with Ms Bianca RinehartMr Hancock concerning clause April 2007 HD Deed (referred to in paragraph 284 of the Statement of Claim), or any draft thereof

e.Documents created on or before 31 August 2009 recording or referring to any communication to or with Mr Hancock concerning clause 16 of the Deed of Further Settlement dated 10 August 2009, or any draft thereof

f.Document created on or before 30 November 2010 recording or referring to any communication to or with Mr Hancock concerning clause 11(ii) of the Deed of Variation dated 18 November 2010, or any draft thereof

g.Board minutes of any meeting of the directors of concerning clause 16.2(a) of the Porteous Settlement Deed, clause 20 of the Hope Downs Deed or clause 9 of the April 2007 HD Deed, or any draft thereof

The parties have liberty to apply on 48 hours’ notice.

Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

1124 of 2014

BETWEEN:

BIANCA HOPE RINEHART

First Applicant

JOHN LANGLEY HANCOCK

Second Applicant

GEORGINA HOPE RINEHART (IN HER PERSONAL CAPACITY, AS TRUSTEE OF THE HOPE MARGARET HANCOCK TRUST AND AS TRUSTEE OF THE TRUST)

First Respondent

HANCOCK PROSPECTING PTY LTD ( 008 676 417)

Second Respondent

HANCOCK MINERALS PTY LTD ( 057 326 824)

Third Respondent

HANCOCK FAMILY MEMORIAL FOUNDATION LTD ( 008 499 312)

Fourth Respondent

TADEUSZ JOSEF WATROBA

Fifth Respondent

WESTRAINT RESOURCES PTY LTD ( 009 083 783)

Sixth Respondent

INVESTMENTS PTY LTD ( 070 550 104)

Seventh Respondent

150 INVESTMENTS PTY LTD ( 070 550 159)

Eighth Respondent

HOPE RINEHART WELKER

Ninth Respondent

GINIA HOPE FRANCES RINEHART

Tenth Respondent

MAX CHRISTOPHER DONNELLY (IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF THE LATE LANGLEY GEORGE HANCOCK)

Eleventh Respondent

HOPE DOWNS IRON ORE PTY LTD ( 071 514 308)

Twelfth Respondent

ROY HILL IRON ORE PTY LTD ( 123 722 038)

Thirteenth Respondent

MULGA DOWNS INVESTMENTS PTY LTD ( 132 484 050)

Fourteenth Respondent

MULGA DOWNS IRON ORE PTY LTD ( 080 659 150)

Fifteenth Respondent

JUDGE

GLEESON J

DATE:

13 APRIL 2015

PLACE:

SYDNEY

REASONS FOR JUDGMENT

1This is an application for discovery of categories of documents (“discovery application”) said to be required by the applicants to enable them to resist two interlocutory applications which, in summary, seek orders that the parties be referred to arbitration pursuant to s 8(1) of the Commercial Arbitration Act 2010 (NSW) (“NSW Act”) Commercial Arbitration Act 2012 (“WA Act”) and that the proceeding be stayed (“stay applications”)

2The precise orders now sought by the applicants

Pursuant to rule 1.34 of the Federal Court Rules 2011(“Rules”)compliance with r 20.13(3) be dispensed with for the purpose of the discovery sought in the application;

The respondents give discovery pursuant to rule 20.15 of the Rules of 14 categories of documents specified in the application.

3The categories of documents in respect of which discovery is sought are listed in the annexure to these reasons.

4The application for discovery is opposed by the first respondent (“Mrs Rinehart” or ”) and the second, third, fifth, sixth, seventh, twelfth, thirteen and fifteenthrespondents (“ respondents”) (collectively “respondents”)

Background to discovery application

5The proceeding was commenced in October 2014 by an originating application and statement of claim. It was described by the previous docket judge as “the latest iteration of a bitter and long running dispute between some of the children of and their mother as to GHR’s alleged misconduct in administration of a trust of which the children are beneficiaries”: Rinehart v Rinehart [2014] FCA . In that judgment, his Honour summarised the statement of claim as follows:

It is 95 pages long and is accompanied by a “confidential addendum” of a further six pages.

The allegations in the Statement of Claim are similar to those...

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