Shane Doyle KC, with Stewart Webster KC, represented the respondents, instructed by Allens.
This case was an appeal of a decision of the Supreme Court of Queensland. The first instance proceedings commenced after a Texan arbitral award determined that the respondents were liable to pay Tri-Star Petroleum Company additional royalty payments, and the respondents sued the appellants for a proportionate share of those additional payments (the Amount) as a result. The primary judge determined that, properly construed, the Royalty Assumption Deeds and Deeds of Assumption (which the appellants had entered into with the respondents) required the appellants to pay the Amount to the respondents.
The appellant in this case sought to challenge these findings on the grounds that the primary judge erred in his construction of the Royalty Assumption Deeds and Deeds of Assumption. The respondents sought to maintain the decision at first instance on alternative grounds: first, that on the proper construction of the Sale and Purchase Deeds, the appellants were liable to pay the Amount to the respondents, and alternatively, that there was a privity of interest between the appellants and the respondents in respect of the arbitration, such that the appellants are estopped from denying that they are liable to pay the Amount.
It was held that the appellants failed to establish that the primary judge erred in construing the Royalty Assumption Deeds and the Deeds of Assumption. Accordingly, the appeal was dismissed with costs.
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