Kraft Foods Group Brands LLC v Bega Cheese Limited (No 2) [2018] FCA 615

Kraft Foods Group Brands LLC v Bega Cheese Limited (No 2) [2018] FCA 615

The injunction should restrain Kraft from taking any step in the New York arbitration pending determination of the whole proceeding because the pleadings, including Bega's cross-claim and Kraft's defence to it, put in issue the ownership of goodwill in the packaging, get-up or trade dress, creating a real risk of inconsistent findings if the arbitration proceeded. Bega was the successful party on the interlocutory application, and Bega's unsuccessful waiver issue was not raised so unreasonably as to justify departure from the usual order that costs follow the event.

Jurisdiction
Australia
Judgment Date
04 May 2018
Procedural Posture
Commercial and Corporations Proceeding; Interlocutory Application for Anti Arbitration Injunction / Determination of the Form of Interlocutory Injunctive Relief and Costs Following Reasons in Kraft Foods Group Brands LLC V Bega Cheese Limited [2018] FCA 549
Outcome
Anti-arbitration injunction granted in the form sought by Bega; applicants ordered to pay Bega's costs of the interlocutory application.
Legal Topics
['international Arbitration' 'anti Arbitration Injunction' 'interlocutory Injunction' 'scope of Interlocutory Relief' 'risk of Inconsistent Findings' 'costs Follow the Event' 'waiver' 'misleading or Deceptive Conduct' 'goodwill in Packaging and Get Up or Trade Dress']
['arbitration' 'civil Procedure' 'costs' 'australian Consumer Law'] ['international Arbitration' 'anti Arbitration Injunction' 'interlocutory Injunction' 'scope of Interlocutory Relief' 'risk of Inconsistent Findings' 'costs Follow the Event' 'waiver' 'misleading or Deceptive Conduct' 'goodwill in Packaging and Get Up or Trade Dress']

Case Brief

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Procedural Posture

Commercial and Corporations Proceeding; Interlocutory Application for Anti Arbitration Injunction / Determination of the Form of Interlocutory Injunctive Relief and Costs Following Reasons in Kraft Foods Group Brands LLC V Bega Cheese Limited [2018] FCA 549

Legal Issues

  1. 1 ["Whether the anti-arbitration injunction should restrain Kraft only while the applicants' claim is pending or until determination of the whole proceeding, including Bega's cross-claim." "Whether the cross-claim and Kraft's defence to it created a risk of inconsistent findings about goodwill and trade dress if the arbitration proceeded." 'Whether costs of the interlocutory application should be reserved, apportioned, or awarded to Bega as the successful party.']

Ratio Decidendi

The injunction should restrain Kraft from taking any step in the New York arbitration pending determination of the whole proceeding because the pleadings, including Bega's cross-claim and Kraft's defence to it, put in issue the ownership of goodwill in the packaging, get-up or trade dress, creating a real risk of inconsistent findings if the arbitration proceeded. Bega was the successful party on the interlocutory application, and Bega's unsuccessful waiver issue was not raised so unreasonably as to justify departure from the usual order that costs follow the event.

Court Disposition

Anti-arbitration injunction granted in the form sought by Bega; applicants ordered to pay Bega's costs of the interlocutory application.

Orders

  • ['The first applicant be restrained, pending the determination of this proceeding, from taking any step, directly or indirectly, in arbitration proceedings commenced before the International Centre for Dispute Resolution, New York, on 13 February 2018 having Case Number: 01-18-0000-7749 (the arbitration), including...