Paul Cardile and Ors v Led Builders Pty Ltd
[1999] HCA 18Paul Cardile and Ors
vLed Builders Pty Ltd
Judges:
Gaudron J
McHugh J
Gummow J
Callinan J
Kirby J
Legislative References:
Business Names Act 1962 (NSW) - The Act
Conveyancing Act 1919 (NSW) - s 37A
Federal Court of Australia Act 1976 (Cth) ("the Federal Court Act") - s 23
Copyright Act 1968 (Cth) - s 115(2)
Trade Practices Act 1974 (Cth) - s 80
Family Law Act 1975 (Cth) - s 114
Workplace Relations Act 1996 (Cth) - s 170NG
Proceeds of Crime Act 1987 (Cth) - Div 2 of PtIII
Crown Lands Act 1929 (SA) - The Act
Conveyancing Act 1919 (NSW) - s 37A
Bankruptcy Act 1966 (Cth) - s 120; s 121; s 122
Corporations Act 2001 (Cth) - s 486A; s 588FA; s 588FB; s 588FC; s 588FD; s 588FE; s 588FF; s 598
Case References:
A J Bekhor
&
Co Ltd v Bilton - [1981] 2 WLR 601; [1981] 2 All ER 565
Abella v Anderson - [1987] 2 Qd R 1
Ascot Investments Pty Ltd v Harper - (1981) 148 CLR 337
Australian Marketing Development Pty Ltd v Australian Interstate Marketing Pty Ltd - [1972] VR 219
Australian Trade Commission v Film Funding
&
Management Pty Ltd - (1989) 24 FCR 595
BM Auto Sales Pty Ltd v Budget Rent A Car System Pty Ltd - (1976) 51 ALJR 254; 12 ALR 363
Ballabil Holdings Pty Ltd v Hospital Products Ltd - (1985) 1 NSWLR 155
Bank of Queensland Ltd v Grant - [1984] 1 NSWLR 409
Bass v Permanent Trustee Co Ltd - [1999] HCA 9 at [89]
Bathurst City Council v PWC Properties Pty Ltd - (1998) 72 ALJR 1470; 157 ALR 414
Bremer Vulkan Schiffbau und Maschinenfabrik v South India Shipping Corporation Ltd - [1981] AC 909
Bristol City Council v Lovell - [1998] 1 WLR 446; [1998] 1 All ER 775
Byrne v Australian Airlines Ltd - (1995) 185 CLR 410
CSR Ltd v Cigna Insurance Australia Ltd - (1997) 189 CLR 345
Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd - [1993] AC 334
Colbeam Palmer Ltd v Stock Affiliates Pty Ltd - (1968) 122 CLR 25
Commissioner of Taxation v Murry - (1998) 72 ALJR 1065; 155 ALR 67
Commonwealth v Verwayen - (1990) 170 CLR 394
Corporate Affairs Commission v Bradley - [1973] 1 NSWLR 382
Dalgety Wine Estates Pty Ltd v Rizzon - (1979) 141 CLR 552
Deputy Commissioner of Taxation v Winter - (1988) 92 FLR 327
Doulton Potteries Ltd v Bronotte - [1971] 1 NSWLR 591
Evans v Buchanan - 555 F 2d 373 (1977)
Fejo v Northern Territory of Australia - (1998) 72 ALJR 1442; 156 ALR 721
Galaxia Maritime SA v Mineralimportexport - [1982] 1 WLR 539; [1982] 1 All ER 796
Garden Mews-St Leonards Pty Ltd v Butler Pollnow Pty Ltd - (1984) 9 ACLR 91
Gibbs v David - (1875) LR 20 Eq 373
Gilford Motor Co v Horne - [1933] Ch 935
Gilfoyle Shipping Services Ltd v Binosi Pty Ltd - [1984] 2 NZLR 742
Giumelli v Giumelli - [1999] HCA 10
Glover v Walters - (1950) 80 CLR 172
Grassby v The Queen - (1989) 168 CLR 1
Hannam v Lamney - (1926) 43 WN (NSW) 68
Harris v Beauchamp Brothers - [1894] 1 QB 801
cf Soinco SACI v Novokuznetsk Aluminium Plant - [1998] QB 406
Hatton v Car Maintenance Co Ltd - [1915] 1 Ch 621
Heavener v Loomes - (1924) 34 CLR 306
High v Bengal Brass Co and Bank of NSW - (1921) 21 SR (NSW) 232
Hughes v Metropolitan Railway Co - (1877) 2 App Cas 439
Hunt v BP Exploration Co (Libya) Ltd - [1980] 1 NZLR 104
ICI Australia Operations Pty Ltd v Trade Practices Commission - (1992) 38 FCR 248
In re Judiciary and Navigation Acts - (1921) 29 CLR 257
Industrial Equity Ltd v Blackburn - (1977) 137 CLR 567
Iraqi Ministry of Defence v Arcepey Shipping Co SA - [1980] 2 WLR 488; [1980] 1 All ER 480
Iraqi Ministry of Defence v Arcepey Shipping Co SA - [1981] QB 65
Jackson v Sterling Industries Ltd - (1987) 162 CLR 612
Jago v District Court (NSW) - (1989) 168 CLR 23
Jones v Lipman - [1962] 1 WLR 832; [1962] 1 All ER 442
Knight v F P Special Assets Ltd - (1992) 174 CLR 178
LED Builders Pty Ltd v Eagle Homes Pty Ltd - (1996) 35 IPR 215
LED Builders Pty Ltd v Eagle Homes Pty Ltd - (1996) 70 FCR 436
LED Builders Pty Ltd v Eagle Homes Pty Ltd - (1997) 78 FCR 64
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) - (1997) 38 IPR 107
Lister
&
Co v Stubbs - (1890) 45 Ch D 1
Mareva Compania Naviera SA v International Bulkcarriers SA ("The Mareva") - [1975] 2 Lloyd's Rep 509
Marine Atlantic Inc v Blyth - (1993) 113 DLR (4th) 501
Mason CJ in Jackson v Sterling Industries Ltd - (1987) 162 CLR 612
Mercantile Group (Europe) AG v Aiyela - [1994] QB 366
Mercedes Benz AG v Leiduck - [1996] AC 284
Mills v Northern Railway of Buenos Ayres Co - (1870) LR 5 Ch App 621
Morgan v DPP - [1970] 3 All ER 1053
National Australia Bank Ltd v Bond Brewing Holdings Ltd - (1990) 169 CLR 271
National Australia Bank Ltd v Bond Brewing Holdings Ltd - [1991] 1 VR 386
National Provincial Bank of England v Thomas - (1876) 24 WR 1013
Ord Forrest Pty Ltd v Federal Commissioner of Taxation - (1974) 130 CLR 124
PCS Operations Pty Ltd v Maritime Union of Australia - (1998) 72 ALJR 863; 153 ALR 520
Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [No 3] - (1998) 72 ALJR 873; 153 ALR 643
Patterson v BTR Engineering (Aust) Ltd - (1989) 18 NSWLR 319
Pickering v Liverpool Daily Post and Echo Newspapers Plc - [1991] 2 AC 370
Radio Corporation of America v Rauland Corporation - [1956] 1 QB 618
Rahman (Prince Abdul) v Abu-Taha - [1980] 1 WLR 1268; [1980] 3 All ER 409
Richardson v Cummins - (1951) 15 ABC 185
Re East Ex parte Nguyen - (1998) 73 ALJR 140; 159 ALR 108
Ex parte Enrobook Pty Ltd - (1996) 142 ALR 87
Riley McKay Pty Ltd v McKay - [1982] 1 NSWLR 264
Robinson v Pickering - (1881) 16 Ch D 660
SCF Co Finance Ltd v Masri - [1985] 1 WLR 876; [1985] 2 All ER 747
Seaward v Paterson - [1897] 1 Ch 545
Z Ltd v A-Z and AA-LL - [1982] QB 558
See Jackson v Sterling Industries Ltd - (1986) 12 FCR 267
Sheldon v Metro-Goldwyn Pictures Corp - 309 US 390 (1940)
Siskina v Distos Compania Naviera SA - [1979] AC 210
South Carolina Insurance Co v Assurantie Maatschappij "De Zeven Provincien" NV - [1987] AC 24
TSB Private Bank International SA v Chabra - [1992] 1 WLR 231; [1992] 2 All ER 245
Tait v The Queen - (1962) 108 CLR 620
Ex parte Australian Builders' Labourers' Federation - (1957) 100 CLR 277
Third Chandris Shipping Corporation v Unimarine SA - [1979] 3 WLR 122; [1979] 2 All ER 972
Thomson Australian Holdings Pty Ltd v Trade Practices Commission - (1981) 148 CLR 150
United States v Village of Airmont - 839 F Supp 1054 (1993)
Vereker v Choi - (1985) 4 NSWLR 277
Warman International Ltd v Dwyer - (1995) 182 CLR 544
Winter v Marac Australia Ltd - (1986) 6 NSWLR 11
Z Ltd v A-Z and AA-LL - [1982] QB 558
re Symon: Public Trustee v Symon - [1944] SASR 102
Judgment date: 6 May 1999
Order
- 1.
- Appeal allowed.
- 2.
- Set aside O4 of the orders made by the Full Court of the Federal Court of Australia on 22 August 1997.
- 3.
- Set aside each O1 of the several orders made by Emmett J on 22 August 1997 and 26 August 1997.
- 4.
- Set aside that part of O2 of the orders made by the Full Court of the Federal Court of Australia on 22 August 1997 which disposes of the costs of the appeal to that court. In place thereof, order each party to bear its, his and her own costs of the appeal to that court.
- 5.
- Suspend the operation of O1, O2, O3 and O4 of these Orders for 14 days from the date of the making of this Order.
- 6.
- Remit the matter to a judge of the Federal Court of Australia for the making, on application by LED Builders Pty Ltd, and on provision of the necessary undertakings, of orders for interlocutory relief in or to the effect of the form set out in the joint majority judgment.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1996) 35 IPR 215.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1996) 70 FCR 436.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107.
(1997) 38 IPR 107 at 117-118.
See, for example, Garden Mews-St Leonards Pty Ltd v Butler Pollnow Pty Ltd (1984) 9 ACLR 91.
(1997) 38 IPR 107 at 119.
(1997) 38 IPR 107 at 120.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 65.
Unreported, Court of Appeal of New South Wales, 20 December 1985 at 13.
(1997) 78 FCR 65 at 78.
[1996] AC 284 at 300.
Unreported, Federal Court of Australia, 23 June 1995.
(1997) 78 FCR 65 at 85.
In the Federal Court, the usual undertaking as to damages is an undertaking to pay such compensation (if any) as the Court thinks just "to any party adversely affected" by the order in question (Practice Note No 3 dated 8 April 1994).
S23 provides:
"The Court has power, in relation to matters in which it has jurisdiction, to make orders of such kinds, including interlocutory orders, and to issue, or direct the issue of, writs of such kinds, as the Court thinks appropriate."
S115(2) provides that the relief in an infringement action includes an injunction "subject to such terms, if any, as the court thinks fit".
S37A provides:
- "(1)
- Save as provided in this section, every alienation of property, made whether before or after the commencement of the Conveyancing (Amendment) Act 1930, with intent to defraud creditors, shall be voidable at the instance of any person thereby prejudiced.
- (2)
- This section does not affect the law of bankruptcy for the time being in force.
- (3)
- This section does not extend to any estate or interest in property alienated to a purchaser in good faith not having, at the time of the alienation, notice of the intent to defraud creditors."
See Corporations Law (Cth), s486A, s588FA-s588FF, s598.
See Bankruptcy Act 1966 (Cth), s120-s122.
(1997) 189 CLR 345 at 391 (original emphasis).
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 623, 638.
(1987) 162 CLR 612 at 623.
See the remarks of Dawson J in Grassby v The Queen (1989) 168 CLR 1 at 16-17 as to the powers of inferior courts enjoyed by implication.
(1990) 169 CLR 271 at 277.
See Fejo v Northern Territory of Australia (1998) 72 ALJR 1442 at 1450, 1459-1460; 156 ALR 721 at 733, 747.
See ICI Australia Operations Pty Ltd v Trade Practices Commission (1992) 38 FCR 248 at 263-265; Bristol City Council v Lovell [1998] 1 WLR 446 at 452-454; [1998] 1 All ER 775 at 781-783.
See also the use of the term "order" in s80A and s87A of the Trade Practices Act to identify respectively the powers conferred upon courts to compel the disclosure of information or publication of advertisements, and to prohibit payment or transfer of moneys or other property.
S5(2) of the Federal Court Act provides that the Federal Court is a superior court of record and is a court of law and equity.
Doulton Potteries Ltd v Bronotte [1971] 1 NSWLR 591 at 596; CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345 at 390.
See, as to receivers, National Australia Bank Ltd v Bond Brewing Holdings Ltd (1990) 169 CLR 271 at 277.
Seaward v Paterson [1897] 1 Ch 545 at 555; Z Ltd v A-Z and AA-LL [1982] QB 558 at 572, 578-579.
(1973) 128 CLR 557.
Dalgety Wine Estates Pty Ltd v Rizzon (1979) 141 CLR 552 at 560, 573-574.
See CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345 at 392. The speech of Lord Browne-Wilkinson in Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd [1993] AC 334 at 342 suggests that that decision may rest upon such a contractual basis.
Bremer Vulkan Schiffbau und Maschinenfabrik v South India Shipping Corporation Ltd [1981] AC 909 at 979-980, 992; South Carolina Insurance Co v Assurantie Maatschappij "De Zeven Provincien" NV [1987] AC 24 at 40; Pickering v Liverpool Daily Post and Echo Newspapers Plc [1991] 2 AC 370 at 420-421. See also Mercedes Benz AG v Leiduck [1996] AC 284 at 298, 300-301.
The common injunction, whereby the Court of Chancery manifested its primacy, in some respects, over the courts of common law, was directed to maintaining what was then the structure of the English legal system and, thus, to the administration of justice in a broad sense having some affinity to the ends furthered by asset preservation orders of the Mareva variety.
Principles of Equity, 2nd ed (1933) at 335.
[1998] 1 WLR 446 at 453; [1998] 1 All ER 775 at 782.
Byrne v Australian Airlines Ltd (1995) 185 CLR 410 at 425-426, 456; Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [No 3] (1998) 72 ALJR 873 at 883; 153 ALR 643 at 655-656.
Thomson Australian Holdings Pty Ltd v Trade Practices Commission (1981) 148 CLR 150 at 161; Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [No 3] (1998) 72 ALJR 873 at 883; 153 ALR 643 at 656.
(1998) 72 ALJR 873 at 883; 153 ALR 643 at 656; PCS Operations Pty Ltd v Maritime Union of Australia (1998) 72 ALJR 863 at 866; 153 ALR 520 at 524-525.
[1996] AC 284.
[1975] 2 Lloyd's Rep 509.
[1996] AC 284 at 299.
[1996] AC 284 at 300.
[1996] AC 284 at 301.
[1975] 2 Lloyd's Rep 509 at 510.
(1978) 16 SASR 329 at 338-339.
(1870) LR 5 Ch App 621.
The Law and Practice of Injunctions in Equity and at Common Law, (1872), vol 2 at 923.
(1870) LR 5 Ch App 621 at 625n.
National Australia Bank Ltd v Bond Brewing Holdings Ltd [1991] 1 VR 386 at 543-546.
National Australia Bank Ltd v Bond Brewing Holdings Ltd (1990) 169 CLR 271 at 276.
Chitty's Archbold's Practice of the Queen's Bench Division of the High Court of Justice, 14th ed (1885), vol 2 at 914; Ashburner's Principles of Equity, 2nd ed (1933) at 353-354.
Harris v Beauchamp Brothers [1894] 1 QB 801; cf Soinco SACI v Novokuznetsk Aluminium Plant [1998] QB 406 at 420-422.
[1894] 1 QB 801 at 808.
[1894] 1 QB 801 at 810-811.
Hughes v Metropolitan Railway Co (1877) 2 App Cas 439 (equitable estoppel); High v Bengal Brass Co and Bank of NSW (1921) 21 SR (NSW) 232 (equitable set-off).
Glover v Walters (1950) 80 CLR 172.
(1950) 80 CLR 172 at 176.
For a legal debt or demand, plaintiffs seeking to compel an appearance by the defendant in one of the common law courts were obliged to rely upon mesne process including statutory provisions such as those with respect to writs of capias ad respondendum made by the Arrest on Mesne Process Act 1902 (NSW). See Warringah Transport Co Pty Ltd v AM Kapral (1957) 57 SR (NSW) 586 at 594-596; Chitty's Archbold's Practice of the Queen's Bench Division of the High Court of Justice, 14th ed (1885), vol 2 at 1449-1454; Dine and McEvoy, "Are Mareva Injunctions Becoming Attachment Orders?", (1989) 8 Civil Justice Quarterly 236; Wasserman, "Equity Renewed: Preliminary Injunctions to Secure Potential Money Judgments", (1992) 67 Washington Law Review 257 at 271-274.
Wasserman, "Equity Renewed: Preliminary Injunctions to Secure Potential Money Judgments", (1992) 67 Washington Law Review 257 at 299-305.
See Hetherington, "Inherent Powers and the Mareva Jurisdiction", (1983) 10 Sydney Law Review 76 at 83-86.
(1998) 72 ALJR 873 at 885; 153 ALR 643 at 658-659.
(1987) 162 CLR 612 at 622.
(1987) 162 CLR 612 at 623. See also Jago v District Court (NSW) (1989) 168 CLR 23 at 74 per Gaudron J.
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 625.
Rahman (Prince Abdul) v Abu-Taha [1980] 1 WLR 1268 at 1272; [1980] 3 All ER 409 at 411; Mercedes Benz AG v Leiduck [1996] AC 284 at 299, 306-307.
Gibbs v David (1875) LR 20 Eq 373 at 377-378; Hatton v Car Maintenance Co Ltd [1915] 1 Ch 621 at 624-625; Heavener v Loomes (1924) 34 CLR 306 at 326; Hannam v Lamney (1926) 43 WN (NSW) 68; Riley McKay Pty Ltd v McKay [1982] 1 NSWLR 264 at 276.
(1987) 162 CLR 612 at 621.
See Tait v The Queen (1962) 108 CLR 620.
See Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 626, 633, 637; Deputy Commissioner of Taxation v Winter (1988) 92 FLR 327 at 328-331.
Unreported, Federal Court of Australia, 23 June 1995.
Unreported, Federal Court of Australia, 23 June 1995 at 11.
Unreported, Court of Appeal of New South Wales, 20 December 1985.
[1994] QB 366 at 375.
[1993] 1 Lloyd's Rep 164.
See, for example, Gilford Motor Co v Horne [1933] Ch 935 at 961-962, 965, 969; Jones v Lipman [1962] 1 WLR 832 at 836-837; [1962] 1 All ER 442 at 444-445.
[1993] AC 334 at 362.
[1994] QB 366 at 375-376.
Re Ling; Ex parte Enrobook Pty Ltd (1996) 142 ALR 87 at 92; affd (1997) 74 FCR 19 at 29.
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 618, 639.
Mercedes Benz AG v Leiduck [1996] AC 284 at 300.
Unreported, 17 July 1998 at 10-11. See also the observations as to the need for care by Dixon J, with respect to the writ of ne exeat colonia in Glover v Walters (1950) 80 CLR 172 at 175-176.
Abella v Anderson [1987] 2 Qd R 1 at 2-3 per McPherson J.
(1989) 18 NSWLR 319.
(1979) 146 CLR 249 at 260 et seq; affd (1981) 146 CLR 306.
(1987) 162 CLR 612 at 622, 625.
The phrase used by Deane J in Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 625.
BM Auto Sales Pty Ltd v Budget Rent A Car System Pty Ltd (1976) 51 ALJR 254 at 257; 12 ALR 363 at 369.
Corporate Affairs Commission v Bradley [1973] 1 NSWLR 382 at 389; Australian Marketing Development Pty Ltd v Australian Interstate Marketing Pty Ltd [1972] VR 219 at 225-226.
Shanahan, Australian Law of Trade Marks and Passing Off, 2nd ed (1990) at 427-428.
Commissioner of Taxation v Murry (1998) 72 ALJR 1065 at 1067-1070; 155 ALR 67 at 70-73.
Shanahan, Australian Law of Trade Marks and Passing Off, 2nd ed (1990) at 383-387.
The phrase used in similar circumstances by Mason CJ in Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 616.
Re Cummins; Richardson v Cummins (1951) 15 ABC 185; In re Symon: Public Trustee v Symon [1944] SASR 102.
[1944] SASR 102 at 108.
[1924] SASR 255 at 263-264.
Ord Forrest Pty Ltd v Federal Commissioner of Taxation (1974) 130 CLR 124 at 142.
Australian Trade Commission v Film Funding & Management Pty Ltd (1989) 24 FCR 595 at 613.
Industrial Equity Ltd v Blackburn (1977) 137 CLR 567 at 572.
See Corporations Law, Pt5.7B, Div 2.
See The Commonwealth v Verwayen (1990) 170 CLR 394 at 411; Bathurst City Council v PWC Properties Pty Ltd (1998) 72 ALJR 1470 at 1479; 157 ALR 414 at 425-426; see also Giumelli v Giumelli [1999] HCA 10 at [10]; Frigo v Culhaci, unreported, Court of Appeal of New South Wales, 17 July 1998 at 12.
See the discussion of Sheldon v Metro-Goldwyn Pictures Corp 309 US 390 (1940) by Windeyer J in Colbeam Palmer Ltd v Stock Affiliates Pty Ltd (1968) 122 CLR 25 at 45; Warman International Ltd v Dwyer (1995) 182 CLR 544 at 565; Nimmer on Copyright, Release 46, (September 1998) vol 4, §14.03[C].
Of the Holy Roman Empire, Voltaire said that it was neither Holy, nor Roman, nor an Empire. Essai sur les moeurs et l'esprit des nations at 70. In England a government committee has proposed that the name "Mareva injunction" be replaced by "freezing injunction". See The Times, 29 January 1999 at 1.
Mareva Compania Naviera SA v International Bulkcarriers SA ("The Mareva") [1975] 2 Lloyd's Rep 509.
[1975] 1 WLR 1093; [1975] 3 All ER 282.
Kunc, "Mareva Injunctions" in Parkinson (ed), The Principles of Equity (1996) 671 at 672.
The continued evolution of this "flexible remedy" is described by Kunc in "Mareva Injunctions" in Parkinson (ed), The Principles of Equity (1996) 671 at 674, where it is declared that "[p]rincipled adaptability is at the core of Mareva relief"; cf Dal Pont and Chalmers, Equity and Trusts in Australia and New Zealand (1996) at 594-604. See Ballabil Holdings Pty Ltd v Hospital Products Ltd (1985) 1 NSWLR 155 at 164 per Glass JA; Riley McKay Pty Ltd v McKay [1982] 1 NSWLR 264.
In England the Supreme Court Act 1981 (UK), s37 replaced the Supreme Court of Judicature (Consolidation) Act 1925 (UK), s45(1) as the basis of jurisdiction. In Australia, the statutory foundations for such orders include in the case of the Federal Court of Australia, the Federal Court of Australia Act 1976 (Cth), s23; in the case of New South Wales: Supreme Court Act 1970 (NSW), s23 and the District Court Act 1973 (NSW), s46; Victoria: Supreme Court Act 1958 (Vic), s62(2) - see now Supreme Court Act 1986 (Vic), s37(3); Queensland: Judicature Act 1876 (Q), s5(8); South Australia: Supreme Court Act 1935 (SA), s29(1); Western Australia: Supreme Court Act 1935 (WA), s25(9); Tasmania: Supreme Court Civil Procedure Act 1932 (Tas), s11(12); Australian Capital Territory: Supreme Court Act 1933 (ACT), s34 and Northern Territory: Supreme Court Act 1979 (NT), s69. See Kunc, "Mareva Injunctions" in Parkinson (ed), The Principles of Equity (1996) 671 at 674-677. In addition to statutory sources of jurisdiction and power, Australian courts have variously relied upon their inherent powers (Riley McKay Pty Ltd v McKay [1982] 1 NSWLR 264) or implied and incidental powers (Jackson v Sterling Industries Ltd) (1986) 12 FCR 267 at 272 per Bowen CJ. In New Zealand, the Judicature Act 1908 (NZ) s16 has been held to empower the making of such orders: Hunt v BP Exploration Co (Libya) Ltd [1980] 1 NZLR 104.
As in Trade Practices Act 1974 (Cth), s80 which provides for "injunction" although there is no requirement of a threat of conduct contrary to law; cf Walter Developments Pty Ltd v Roberts (1995) 16 ACSR 280 at 282-283.
CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345 at 390.
CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345 at 391-392.
cf Meagher, Gummow and Lehane, Equity: Doctrines and Remedies, 3rd ed (1992) at 607-609.
See eg Galaxia Maritime SA v Mineralimportexport [1982] 1 WLR 539; [1982] 1 All ER 796; Z Ltd v A-Z and AA-LL [1982] QB 558 at 575-578 per Lord Denning MR.
Kunc, "Mareva Injunctions" in Parkinson (ed), The Principles of Equity (1996) 671 at 681; Dal Pont and Chalmers, Equity and Trusts in Australia and New Zealand (1996) at 599.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 65.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107.
Federal Court of Australia Act 1976 (Cth), s23.
By remitter from the Full Court, Emmett J initially made orders on 22 August 1997 and subsequently varied and extended their operation on 26 August 1997.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1996) 35 IPR 215.
(1996) 35 IPR 215 at 225 per Davies J.
(1996) 35 IPR 215 at 223 per Davies J.
Judgment was reserved on these proceedings by Lindgren J and had not been delivered at the time of this decision.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 112 per Emmett J. See also at 113.
(1997) 38 IPR 107 at 117 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 65 at 86 per Tamberlin J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 109 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 112 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 117 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 120 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 120 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 64 at 90.
Orders initially made on 22 August 1997 to have effect until 24 August 1997. On 26 August 1997 the orders were varied and continued "until further order".
The original notice of appeal challenged only the judgment and orders of the Full Court of the Federal Court. It contained two grounds. These are detailed below.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 110 per Emmett J.
For example under the Conveyancing Act 1919 (NSW), s37A or under Div 2 of Pt5.7B of the Corporations Law (Cth).
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 120 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 118 per Emmett J.
Winter v Marac Australia Ltd (1986) 6 NSWLR 11 at 12 and Coxton Pty Ltd v Milne, unreported, New South Wales Court of Appeal, 20 December 1985 at 13. Similar views were expressed in the speech of Lord Diplock in Siskina v Distos Compania Naviera SA [1979] AC 210 at 254-256 and Lord Hailsham at 260, 261. The remarks of Lord Hailsham were followed by Clarke J in Bank of Queensland Ltd v Grant [1984] 1 NSWLR 409 at 411.
Tomlinson v Cut Price Deli Pty Ltd, unreported, Federal Court of Australia, 23 June 1995.
Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd [1993] AC 334 at 362 per Lord Mustill; cf Mercantile Group (Europe) AG v Aiyela [1994] QB 366.
See in particular s23.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 119 per Emmett J.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (No 4) (1997) 38 IPR 107 at 118-120 per Emmett J.
As offending the principle that relief should conform to the minimum disturbance of legal rights necessary to do equity.
Unreported, Federal Court of Australia, 23 June 1995.
LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 65 at 77.
See LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 65 at 78.
(1997) 78 FCR 65 at 78.
Jackson v Sterling Industries Ltd (1987) 162 CLR 612.
(1997) 78 FCR 65 at 85.
(1997) 78 FCR 65 at 85.
cf Chan, "LED Builders v Eagle Homes - Continuing the Development of Mareva Relief in Australia" (1998) 20 Sydney Law Review 487 at 491.
(1997) 78 FCR 65 at 78.
cf Siskina v Distos Compania Naviera SA [1979] AC 210; Mercedes Benz AG v Leiduck [1996] AC 284; Andrews, "Mareva Relief Cannot Stand Alone: Further Judicial Reflections Upon The Siskina Doctrine" (1996) Cambridge Law Journal 12.
s23.
s71.
The Queen v Spicer; Ex parte Australian Builders' Labourers' Federation (1957) 100 CLR 277 at 287-289; cf at 291 "it must be a judicial discretion proceeding upon grounds that are defined or definable, ascertained or ascertainable, and governed accordingly".
Wright, Miller & Kane, Federal Practice and Procedure: Civil, 2d ¶2947.
See eg Evans v Buchanan 555 F 2d 373 at 387 (1977).
See eg United States v Village of Airmont 839 F Supp 1054 (1993).
See eg s75, s76 and s77; cf In re Judiciary and Navigation Acts (1921) 29 CLR 257 at 266-267; Re East, Ex parte Nguyen (1998) 73 ALJR 140 at 158; 159 ALR 108 at 132.
As was remarked in Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 622 and in Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [No 3] (1998) 72 ALJR 873 at 883-884; 153 ALR 643 at 655-656.
See Jackson v Sterling Industries Ltd (1986) 12 FCR 267 at 272 per Bowen CJ; approved Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 623-624; cf CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345 at 391.
See eg Tait v The Queen (1962) 108 CLR 620 at 623.
Morgan v DPP [1970] 3 All ER 1053; cf Radio Corporation of America v Rauland Corporation [1956] 1 QB 618.
Supreme Court of Judicature (Consolidation) Act 1925 (UK), s45(1).
See eg Lister & Co v Stubbs (1890) 45 Ch D 1 at 13 per Cotton LJ. See also Mills v Northern Railway of Buenos Ayres Co (1870) LR 5 Ch App 621 at 627-628 per Lord Hatherley LC; National Provincial Bank of England v Thomas (1876) 24 WR 1013. The former rule in equity was summed up by James LJ in Robinson v Pickering (1881) 16 Ch D 660 at 661: "You cannot get an injunction to restrain a man who is alleged to be a debtor from parting with his property". For an explanation of the rule before the practice of granting Mareva orders became more common see Iraqi Ministry of Defence v Arcepey Shipping Co SA [1981] QB 65 at 72 per Robert Goff J; discussed Tilbury, Civil Remedies (1990), vol 1 at 327-329.
cf Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 631-632 per Toohey J.
As stated above, the Federal Court is a court created by statute. As such its powers are found both in the express language of enabling statutes and in implications necessarily derived from the provisions of such statutes.
Knight v F P Special Assets Ltd (1992) 174 CLR 178 at 191, 205; cf Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [No 3] (1998) 72 ALJR 873 at 900 per Gaudron J; 153 ALR 643 at 678-679.
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 639 per Gaudron J.
Mercedes Benz AG v Leiduck [1996] AC 284 at 308 per Lord Nicholls of Birkenhead (diss).
[1998] QB 406 at 420.
[1979] AC 210.
[1994] QB 366 at 377.
Dal Pont and Chalmers, Equity and Trusts in Australia and New Zealand (1996) at 396 referring to Hunt v BP Exploration Co (Libya) Ltd [1980] 1 NZLR 104 at 117-118.
(1987) 162 CLR 612 at 621.
(1995) 129 DLR (4th) 733 at 755.
Mercedes Benz AG v Leiduck [1996] AC 284 at 307.
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 622 per Deane J; cf McDermott, "Equitable Jurisdiction of Magistrates' Courts: An Australian Development" (1988) 62 Australian Law Journal 533 at 536.
See eg Ascot Investments Pty Ltd v Harper (1981) 148 CLR 337 at 354-355; Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [No 3] (1998) 72 ALJR 873 at 903; 153 ALR 643 at 683; Galaxia Maritime SA v Mineralimportexport [1982] 1 WLR 539 at 542-543; [1982] 1 All ER 796 at 799-800.
Gilfoyle Shipping Services Ltd v Binosi Pty Ltd [1984] 2 NZLR 742 at 746.
Galaxia Maritime SA v Mineralimportexport [1982] 1 WLR 539 at 542 per Kerr LJ; [1982] 1 All ER 796 at 799; Gilfoyle Shipping Services Ltd v Binosi Pty Ltd [1984] 2 NZLR 742 at 745.
See eg Dal Pont and Chalmers, Equity and Trusts in Australia and New Zealand (1996) at 599-600; Kunc, "Mareva Injunctions" in Parkinson (ed), The Principles of Equity (1996) 671 at 679-685.
Mercantile Group (Europe) AG v Aiyela [1994] QB 366 at 374 per Hoffmann LJ; Tomlinson v Cut Price Deli Pty Ltd, unreported, Federal Court of Australia, 23 June 1995; cf TSB Private Bank International SA v Chabra [1992] 1 WLR 231 at 239-240; [1992] 2 All ER 245 at 253-254; Ballabil Holdings Pty Ltd v Hospital Products Ltd (1985) 1 NSWLR 155 at 164; Coxton Pty Ltd v Milne, unreported, New South Wales Court of Appeal, 20 December 1985.
cf Siskina v Distos Compania Naviera SA [1979] AC 210 at 254-256; Bank of Queensland Ltd v Grant [1984] 1 NSWLR 409; Winter v Marac Australia Ltd (1986) 6 NSWLR 11.
Patterson v BTR Engineering (Aust) Ltd (1989) 18 NSWLR 319 at 327 per Rogers AJA.
Rogers, "The Scope of the Mareva Jurisdiction" in Hetherington (ed), Mareva Injunctions, (1983) at 26.
Mercedes Benz AG v Leiduck [1996] AC 284 at 300 per Lord Mustill, delivering the majority judgment. See also LED Builders Pty Ltd v Eagle Homes Pty Ltd (1997) 78 FCR 65 at 78 per Beaumont and Branson JJ.
Third Chandris Shipping Corporation v Unimarine SA [1979] 3 WLR 122 at 137-138; [1979] 2 All ER 972 at 984-985.
National Australia Bank Ltd v Bond Brewing Holdings Ltd (1990) 169 CLR 271 at 277.
Frigo v Culhaci, unreported, New South Wales Court of Appeal, 17 July 1998 at 9; cf Ipp, "Lawyers' Duties to the Court" (1998) 114 Law Quarterly Review 63. In the present case the original orders had attached to them a sealed document, apparently in the form required by the Federal Court affording an explanation and elaboration of the expression "the usual undertaking as to damages". This made it plain that such an undertaking represented an undertaking to "pay to any party adversely affected by the interlocutory injunction or undertaking such compensation (if any) as the Court thinks just, in such manner as the Court directs".
Frigo v Culhaci, unreported, New South Wales Court of Appeal, 17 July 1998 at 10-11 referring to exceptions for legal fees, living expenses and payment of debts.
Z Ltd v A-Z and AA-LL [1982] QB 558 at 576, 589.
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 at 625.
A J Bekhor & Co Ltd v Bilton [1981] 2 WLR 601 at 621-622; [1981] 2 All ER 565 at 581; Vereker v Choi (1985) 4 NSWLR 277; SCF Co Finance Ltd v Masri [1985] 1 WLR 876; [1985] 2 All ER 747; Tyree, "Mareva Injunctions: The Third Party Problem" (1982) 10 Australian Business Law Review 375 at 385-386; Zuckerman, "Mareva and Interlocutory Injunctions Disentangled" (1992) 108 Law Quarterly Review 559; Willoughby and Connell, "The Mareva Injunction: A Cruel Tyranny?" (1997) 8 European Intellectual Property Review 479.
Z Ltd v A-Z and AA-LL [1982] QB 558 at 575-576.
Abella v Anderson [1987] 2 Qd R 1 at 4-5.
Iraqi Ministry of Defence v Arcepey Shipping Co SA [1980] 2 WLR 488 at 495; [1980] 1 All ER 480 at 487; Riley McKay Pty Ltd v McKay [1982] 1 NSWLR 264 at 276; Marine Atlantic Inc v Blyth (1993) 113 DLR (4th) 501 at 504.
s588FB, s588FC, s588FE(3), s588FE(4) and s588FE(5) and s588FF. The provisions concern the avoidance of uncommercial and insolvent transactions by a corporation.
(1997) 78 FCR 65 at 86.
(1997) 78 FCR 65 at 78.
Ground 1 in the notice of appeal asserted that the Federal Court did not have jurisdiction to make the orders against the appellants where there was no cause of action maintainable by LED against them and in respect of property in the hands of the appellants not available to LED to satisfy a judgment which LED might in future obtain against Eagle Homes. Ground 2 asserted that the Full Court had erred in interfering with the order made by Emmett J and in granting "Mareva relief" upon five stated grounds at least three of which (grounds 2(a), (b) and (c)) refer to substantially the same point as in the first ground.
(1997) 78 FCR 65 at 78.
cf Bass v Permanent Trustee Co Ltd [1999] HCA 9 at [89].
Mercedes Benz AG v Leiduck [1996] AC 284.
Z Ltd v A-Z and AA-LL [1982] QB 558 at 589-590 per Kerr LJ; cf Tilbury, Civil Remedies (1990) vol 1 at 336-338.