Hancock Prospecting Pty Ltd v Rinehart [2017] FCAFC 170

Hancock Prospecting Pty Ltd v Rinehart [2017] FCAFC 170

All substantive and validity claims made by the respondents against the deed signatories fall within the scope of the relevant arbitration agreements and must be stayed under s 8(1) of the Commercial Arbitration Act 2010 (NSW). The phrase 'any dispute under this deed' in the arbitration clauses is to be interpreted liberally, covering not only disputes governed by the deed, but also disputes as to the validity of the deed and the arbitration agreement, save for an extremely limited and explicit attack directly on the arbitration clause itself. As no distinct, non-parasitic attack on the arbitration agreements was pleaded (other than general allegations of disadvantage as to privacy/cost...

Jurisdiction
Australia
Judgment Date
27 October 2017
Procedural Posture
Appeal From Interlocutory Decision / Post Appeal; Orders and Reasons for Judgment
Outcome
Leave to appeal granted. Appeals allowed. Proceedings stayed (save for third party companies, but claims against them also stayed). Cross-appeals and notices of contention dismissed.
Legal Topics
['domestic Arbitration' 'commercial Arbitration Agreement Construction' 'separability of Arbitration Agreements' 'competence Competence' 'family Trusts and Fiduciary Duties' 'stay of Proceedings in Favour of Arbitration' 'enforcement of Arbitration Agreements' 'jurisdictional Gateways for Arbitration' 'orders for Stay and Procedure' 'trade Practices Act / ACL Misleading Conduct']
['arbitration' 'contract Law' 'equity and Trusts' 'constitutional Law' 'corporations Law'] ['domestic Arbitration' 'commercial Arbitration Agreement Construction' 'separability of Arbitration Agreements' 'competence Competence' 'family Trusts and Fiduciary Duties' 'stay of Proceedings in Favour of Arbitration' 'enforcement of Arbitration Agreements' 'jurisdictional Gateways for Arbitration' 'orders for Stay and Procedure' 'trade Practices Act / ACL Misleading Conduct']

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Procedural Posture

Appeal From Interlocutory Decision / Post Appeal; Orders and Reasons for Judgment

Legal Issues

  1. 1 ['Whether the disputes are subject to valid and enforceable arbitration agreements under the relevant deeds' "Proper construction of the phrase 'any dispute under this deed' in arbitration clauses" 'Whether claims against non-signatory third parties (companies) are matters subject to arbitration under s 8(1) Commercial Arbitration Act 2010 (NSW)' "Nature and scope of the 'null and void, inoperative or incapable of being performed' exception and if the Court or arbitrator determines it" 'Application and extent of separability and competence principles in arbitration agreements' "Whether all substantive and 'validity' claims should be stayed in favour of arbitration" "Whether the Commercial Arbitration Act 2010 (NSW) is 'picked up' by s 79 of the Judiciary Act 1903 (Cth) in Federal Court proceedings"]

Ratio Decidendi

All substantive and validity claims made by the respondents against the deed signatories fall within the scope of the relevant arbitration agreements and must be stayed under s 8(1) of the Commercial Arbitration Act 2010 (NSW). The phrase 'any dispute under this deed' in the arbitration clauses is to be interpreted liberally, covering not only disputes governed by the deed, but also disputes as to the validity of the deed and the arbitration agreement, save for an extremely limited and explicit attack directly on the arbitration clause itself. As no distinct, non-parasitic attack on the arbitration agreements was pleaded (other than general allegations of disadvantage as to privacy/cost...

Court Disposition

Leave to appeal granted. Appeals allowed. Proceedings stayed (save for third party companies, but claims against them also stayed). Cross-appeals and notices of contention dismissed.

Orders

  • ['Leave to appeal be granted.' 'The appeals be allowed.' 'The cross-appeals be dismissed.' 'Notice of contentions be dismissed.' 'The orders of the primary judge set aside. Proceedings NSD1124/2014 are stayed under s 8(1) Commercial Arbitration Act 2010 (NSW), pending arbitration, save for claims against Hope Downs...