Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13

Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13

The validity claims, including challenges to the arbitration clause in the deeds on grounds of undue influence and duress, are subject to the arbitral clauses and must be referred to confidential arbitration. The arbitral clauses, interpreted in their commercial and confidential-family context, cover such disputes. The third party companies are persons 'claiming through or under' parties to the arbitration agreement for the purposes of s 8(1) of the Commercial Arbitration Act 2010 (NSW), and are entitled to have claims against them stayed and referred to arbitration.

Parties
Appellant: Bianca Hope Rinehart; Appellant: John Hancock; Respondent: Hancock Prospecting Pty Ltd; Respondent: Georgina Hope Rinehart (in her personal capacity and as trustee of the Hope Margaret Hancock Trust and as trustee of the HFMF Trust); Respondent: Roy Hill Iron Ore Pty Ltd; Respondent: Hope Downs Iron Ore Pty Ltd; Respondent: Mulga Downs Iron Ore Pty Ltd; Respondent: Hancock Family Memorial Foundation Limited; Respondent: Hancock Resources Limited; Respondent: Zamoever Pty Ltd; Respondent: Speed and Stacey Lawyers; Respondent: Submitting appearances for twelfth and thirteenth respondents; Respondent: No appearance for tenth, fourteenth and fifteenth respondents in S143/2018 and the eleventh, fourteenth and fifteenth respondents in S144/2018; Amicus Curiae: Australian Centre for International Commercial Arbitration
Jurisdiction
Australia
Judgment Date
08 May 2019
Procedural Posture
Appeal / Final Judgment and Cross Appeal
Outcome
Appeals dismissed with costs; cross-appeal allowed; partial reversal of Full Court orders and stay granted.
Legal Topics
Construction of Dispute Resolution Clause, Scope of Arbitration Agreement, Standing to Enforce Arbitration Clause, Confidential Dispute Resolution
Contract Arbitration Construction of Dispute Resolution Clause Scope of Arbitration Agreement Standing to Enforce Arbitration Clause Confidential Dispute Resolution

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Parties

Bianca Hope Rinehart

Appellant

John Hancock

Appellant

Hancock Prospecting Pty Ltd

Respondent

Georgina Hope Rinehart (in her personal capacity and as trustee of the Hope Margaret Hancock Trust and as trustee of the HFMF Trust)

Respondent

Roy Hill Iron Ore Pty Ltd

Respondent

Hope Downs Iron Ore Pty Ltd

Respondent

Mulga Downs Iron Ore Pty Ltd

Respondent

Hancock Family Memorial Foundation Limited

Respondent

Hancock Resources Limited

Respondent

Zamoever Pty Ltd

Respondent

Speed and Stacey Lawyers

Respondent

Submitting appearances for twelfth and thirteenth respondents

Respondent

No appearance for tenth, fourteenth and fifteenth respondents in S143/2018 and the eleventh, fourteenth and fifteenth respondents in S144/2018

Respondent

Australian Centre for International Commercial Arbitration

Amicus Curiae

Procedural Posture

Appeal / Final Judgment and Cross Appeal

Legal Issues

  1. 1 Whether claims challenging validity of arbitration clause are subject to arbitral clauses in settlement deeds
  2. 2 Whether third party assignees of trust property not party to arbitration agreement can invoke stay under s 8(1) of Commercial Arbitration Act 2010 (NSW) as persons 'claiming through or under' parties to the agreement

Ratio Decidendi

The validity claims, including challenges to the arbitration clause in the deeds on grounds of undue influence and duress, are subject to the arbitral clauses and must be referred to confidential arbitration. The arbitral clauses, interpreted in their commercial and confidential-family context, cover such disputes. The third party companies are persons 'claiming through or under' parties to the arbitration agreement for the purposes of s 8(1) of the Commercial Arbitration Act 2010 (NSW), and are entitled to have claims against them stayed and referred to arbitration.

Court Disposition

Appeals dismissed with costs; cross-appeal allowed; partial reversal of Full Court orders and stay granted.

Orders

  • Matter S143/2018: Appeal dismissed with costs.
  • Third party companies' application for special leave to cross-appeal allowed.