Stargames Corp Pty Limited v WMS Gaming Inc [2007] NSWSC 940

Stargames Corp Pty Limited v WMS Gaming Inc [2007] NSWSC 940

A short interim restraint was warranted because the plaintiffs had a reasonably arguable case for dismissal of the United States proceedings and/or for restraining WMS from proceeding with them, and because factors including WMS's apparently pre-emptive commencement of proceedings during the payment period, the apparent misconception in WMS's pleading about the nature of the Australian proceedings, and the amendment sought and granted without notice justified limited relief while preserving comity and allowing fuller argument shortly thereafter.

Jurisdiction
Australia
Judgment Date
23 August 2007
Procedural Posture
Application for Urgent Injunctive Relief / Ex Tempore Interlocutory Application; Limited Restraint Granted Pending Return Before the Commercial List Duty Judge
Outcome
Injunction granted to 5pm on 29 August 2007.
Legal Topics
['injunctions' 'anti Suit Injunctions' 'competing Proceedings in Australia and the United States' 'exclusive Jurisdiction and Venue Clauses' 'comity' 'compulsory Counterclaims']
['equity' 'civil Procedure' 'private International Law'] ['injunctions' 'anti Suit Injunctions' 'competing Proceedings in Australia and the United States' 'exclusive Jurisdiction and Venue Clauses' 'comity' 'compulsory Counterclaims']

Case Brief

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Procedural Posture

Application for Urgent Injunctive Relief / Ex Tempore Interlocutory Application; Limited Restraint Granted Pending Return Before the Commercial List Duty Judge

Legal Issues

  1. 1 ['Whether WMS Gaming Inc should be restrained, on an urgent interim basis, from seeking orders in the United States proceedings to prevent the plaintiffs from continuing the Australian proceedings.' "Whether WMS's commencement and amendment of the United States proceedings, including its alleged misconception of the Australian proceedings, justified a limited restraint to protect the jurisdiction of the Supreme Court of New South Wales." 'Whether the plaintiffs had a reasonably arguable case for dismissal of the United States proceedings and/or a restraint preventing WMS from proceeding with those proceedings.']

Ratio Decidendi

A short interim restraint was warranted because the plaintiffs had a reasonably arguable case for dismissal of the United States proceedings and/or for restraining WMS from proceeding with them, and because factors including WMS's apparently pre-emptive commencement of proceedings during the payment period, the apparent misconception in WMS's pleading about the nature of the Australian proceedings, and the amendment sought and granted without notice justified limited relief while preserving comity and allowing fuller argument shortly thereafter.

Court Disposition

Injunction granted to 5pm on 29 August 2007.

Orders

  • ['Upon the plaintiffs, by their counsel, giving the usual undertaking as to damages, the defendant was restrained until 5pm Australian Eastern Standard Time on 29 August 2007 from taking any step directly or indirectly to obtain from the United States District Court for the Northern District of Illinois, Eastern...