These appeals arose from orders refusing to permanently stay Federal Court proceedings brought by Mining Standards International Pty Ltd (MSI) relating to the termination of a sale agreement for mining assets. The applicants sought a stay on the basis that the issues overlapped with prior litigation in the Supreme Court of Western Australia, culminating in a Court of Appeal declaration that the agreement was validly terminated.
The Full Court (Banks-Smith, Kennett and Wheatley JJ) allowed the appeals. Their Honours held that the Federal Court proceeding was an abuse of process: MSI had withdrawn a key “reasonable endeavours” defence in the WA proceedings for tactical reasons, only to pursue similar allegations in the Federal Court, creating a risk of inconsistent findings and unjustifiable oppression to the receivers. The Court found that neither litigation funding issues nor lack of resources justified the staged approach to litigation, and emphasised the public interest in the efficient resolution of disputes.
Leave to appeal was granted, the appeals allowed, and the Federal Court proceedings permanently stayed.
Matthew Hickey KC appeared (with Peter Collinson KC) for the applicants, instructed by King & Wood Mallesons. Matthew Doyle appeared (with Michael Stewart KC and T Jackson) for the respondent, instructed by Russells.
The judgment can be read by clicking here
