Federal Treasury Enterprise (FKP) Sojuzplodoimport v Spirits International B.V. (No 4) [2017] FCA 1345

Federal Treasury Enterprise (FKP) Sojuzplodoimport v Spirits International B.V. (No 4) [2017] FCA 1345

The cross-claim is stayed because the Russian Federation, the real plaintiff behind the cross-claimants, has failed to comply with an invitation to provide adequate discovery of relevant documents in its possession. The inquiries made to obtain discovery were insufficient and no reasonable explanation was given for the missing materials. The Court has jurisdiction to stay proceedings to prevent abuse of process, even when the party is a foreign sovereign, although comity requires caution. In these extraordinary circumstances, a stay is necessary to ensure fair conduct of the proceedings.

Parties
Applicant / Cross Respondent: Spirits International B.V. (Registered in the Netherlands); First Respondent / First Cross Claimant: Federal Treasury Enterprise (FKP) Sojuzplodoimport; Second Respondent / Second Cross Claimant: Federal Public Unitary Enterprise External Economic Union Sojuzplodoimport (FGUP VO)
Jurisdiction
Australia
Judgment Date
20 November 2017
Procedural Posture
Interlocutory Application / Application for Stay of Proceedings
Outcome
Stay granted; costs awarded to applicant; directions for potential further applications.
Legal Topics
Trade Marks, Discovery, International Comity, Abuse of Process, Stay of Proceedings
Intellectual Property Trade Marks Discovery International Comity Abuse of Process Stay of Proceedings

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Parties

Spirits International B.V. (Registered in the Netherlands)

Applicant / Cross Respondent

Federal Treasury Enterprise (FKP) Sojuzplodoimport

First Respondent / First Cross Claimant

Federal Public Unitary Enterprise External Economic Union Sojuzplodoimport (FGUP VO)

Second Respondent / Second Cross Claimant

Procedural Posture

Interlocutory Application / Application for Stay of Proceedings

Legal Issues

  1. 1 Whether a stay of proceedings should be granted due to alleged failure by the Russian Federation to give proper discovery
  2. 2 Adequacy of discovery by a foreign sovereign state where it is the 'real plaintiff'
  3. 3 Appropriate application of international comity principles when seeking discovery from a sovereign state

Ratio Decidendi

The cross-claim is stayed because the Russian Federation, the real plaintiff behind the cross-claimants, has failed to comply with an invitation to provide adequate discovery of relevant documents in its possession. The inquiries made to obtain discovery were insufficient and no reasonable explanation was given for the missing materials. The Court has jurisdiction to stay proceedings to prevent abuse of process, even when the party is a foreign sovereign, although comity requires caution. In these extraordinary circumstances, a stay is necessary to ensure fair conduct of the proceedings.

Court Disposition

Stay granted; costs awarded to applicant; directions for potential further applications.

Orders

  • The proceeding be stayed until further order.
  • The Cross-Claimants pay the Cross-Respondent's costs of the application for the stay.