Rectron Australia BV v Lu [2014] NSWSC 1367

Rectron Australia BV v Lu [2014] NSWSC 1367

Clause 21 of the Deed of Settlement, construed in context, released claims against the first plaintiff, REPL and associated persons including the second and third plaintiffs. The defendant's Taiwanese claims for breach of privacy and slander arose out of, related to, were connected with or touched upon matters the subject of the Victorian proceedings and the defendant's involvement with REPL and the first plaintiff. By continuing the Taiwanese proceedings after executing the Deed, the defendant breached the implied negative contractual obligation inherent in the release. The Supreme Court of NSW was not an inappropriate forum because the proceedings concerned enforcement in Australia of...

Jurisdiction
Australia
Judgment Date
03 October 2014
Procedural Posture
Equity Division Commercial List Proceedings for Declaratory and Injunctive Relief to Enforce a Deed of Settlement and Restrain Foreign Proceedings / Principal Judgment After Final Hearing
Outcome
Declaratory and injunctive relief granted to the plaintiffs; the defendant was restrained from prosecuting the Taiwan proceeding, ordered to take steps to terminate it, and ordered to pay the plaintiffs' costs.
Legal Topics
['deed of Settlement' 'release' 'implied Obligation Not to Derogate From Grant of Release' 'implied Negative Contractual Stipulation' 'anti Suit Injunction' 'foreign Proceedings Maintained in Breach of Australian Contract' 'forum Non Conveniens']
['contract' 'conflict of Laws' 'equity' 'corporations'] ['deed of Settlement' 'release' 'implied Obligation Not to Derogate From Grant of Release' 'implied Negative Contractual Stipulation' 'anti Suit Injunction' 'foreign Proceedings Maintained in Breach of Australian Contract' 'forum Non Conveniens']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Equity Division Commercial List Proceedings for Declaratory and Injunctive Relief to Enforce a Deed of Settlement and Restrain Foreign Proceedings / Principal Judgment After Final Hearing

Legal Issues

  1. 1 ['Whether, on the proper construction of clause 21 of the Deed of Settlement, the release granted by the defendant extended to claims maintained against the second and third plaintiffs in the Taiwanese proceedings.' 'Whether the second and third plaintiffs were persons entitled to the benefit of the clause 21 release.' "Whether the defendant's continued prosecution of the Taiwanese proceedings after execution of the Deed of Settlement breached his contractual obligations." 'Whether the Court should grant declaratory relief and negative and mandatory injunctive relief restraining and terminating the Taiwanese proceedings.' "Whether the Supreme Court of NSW was an inappropriate forum for determining the plaintiffs' claims for relief."]

Ratio Decidendi

Clause 21 of the Deed of Settlement, construed in context, released claims against the first plaintiff, REPL and associated persons including the second and third plaintiffs. The defendant's Taiwanese claims for breach of privacy and slander arose out of, related to, were connected with or touched upon matters the subject of the Victorian proceedings and the defendant's involvement with REPL and the first plaintiff. By continuing the Taiwanese proceedings after executing the Deed, the defendant breached the implied negative contractual obligation inherent in the release. The Supreme Court of NSW was not an inappropriate forum because the proceedings concerned enforcement in Australia of...

Court Disposition

Declaratory and injunctive relief granted to the plaintiffs; the defendant was restrained from prosecuting the Taiwan proceeding, ordered to take steps to terminate it, and ordered to pay the plaintiffs' costs.

Orders

  • ['DECLARE that, in accordance with the laws of Australia, the Deed of Settlement made in Melbourne, Australia, dated 28 July 2014 between Rectron Australia BV and Chien-Min Lu and others, on its proper construction, has the following meaning in regard to clause 21 of the Deed: Chi-Hsing Kan and Yi-Chen Yeh are...