Sapphire Suite Pty Ltd v Bellini Lounge Pty Ltd [2018] NSWSC 1366

Sapphire Suite Pty Ltd v Bellini Lounge Pty Ltd [2018] NSWSC 1366

A claim against a guarantor of a lessee's liabilities under the relevant commercial lease was distinguishable from authorities concerning ordinary contract, quasi-contract or debt recovery claims and was properly treated as arising out of a commercial transaction that would have been assigned to the Commercial Division under the 1998 Supreme Court assignment regime. It therefore was not an action that, if brought in the Supreme Court, would have been assigned to the Common Law Division for the purposes of s 44(1)(a) of the District Court Act 1973 (NSW), so the District Court lacked jurisdiction and the proceedings should be transferred to the Supreme Court.

Jurisdiction
Australia
Judgment Date
05 September 2018
Procedural Posture
Application by Summons Under S 140 of the Civil Procedure Act 2005 (nsw) to Transfer District Court Proceedings to the Supreme Court / Supreme Court Determination of Transfer Application After District Court Adjourned Proceedings Pending the Application
Outcome
District Court proceedings transferred to the Supreme Court; costs of the application to be costs in the proceedings.
Legal Topics
['transfer of Proceedings' 'district Court Jurisdiction' 'commercial Transactions' 'guarantee of Commercial Lease Liabilities']
['civil Procedure' 'jurisdiction' 'commercial Law'] ['transfer of Proceedings' 'district Court Jurisdiction' 'commercial Transactions' 'guarantee of Commercial Lease Liabilities']

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Procedural Posture

Application by Summons Under S 140 of the Civil Procedure Act 2005 (nsw) to Transfer District Court Proceedings to the Supreme Court / Supreme Court Determination of Transfer Application After District Court Adjourned Proceedings Pending the Application

Legal Issues

  1. 1 ['Whether a suit against guarantors of the liabilities of a lessee under a commercial lease arises out of a commercial transaction.' 'Whether the District Court had jurisdiction under s 44(1)(a) of the District Court Act 1973 (NSW) to hear and determine the remaining claim against the second defendant.' 'Whether District Court proceedings 2016/00089056 should be transferred to the Supreme Court under s 140 of the Civil Procedure Act 2005 (NSW).']

Ratio Decidendi

A claim against a guarantor of a lessee's liabilities under the relevant commercial lease was distinguishable from authorities concerning ordinary contract, quasi-contract or debt recovery claims and was properly treated as arising out of a commercial transaction that would have been assigned to the Commercial Division under the 1998 Supreme Court assignment regime. It therefore was not an action that, if brought in the Supreme Court, would have been assigned to the Common Law Division for the purposes of s 44(1)(a) of the District Court Act 1973 (NSW), so the District Court lacked jurisdiction and the proceedings should be transferred to the Supreme Court.

Court Disposition

District Court proceedings transferred to the Supreme Court; costs of the application to be costs in the proceedings.

Orders

  • ['Order that District Court proceedings 2016/00089056 be transferred to this Court.' 'Order that the costs of this application should be the costs in the proceedings.']