News Limited & ors v Australian Rugby Footbal... Page 1 of 190 Federal Court of Australia [Index] [Search] [Help] News Limited & ors v Australian Rugby Football League Ltd & ors; Brisbane Broncos Rugby League Football Club Ltd & ors v Australian Rugby Football League Ltd & ors; Cowboys Rugby League Ltd v the Australian Rugby Football Club Ltd & ors (96000870) CATCHWORDS PRACTICE AND PROCEDURE - Appeals - findings of primary facts - review of inferences to be drawn from primary facts. Abalos v Australian Postal Commission (1990) 171 CLR 167 Jones v Hyde (1989) 85 ALR 23 Minister for Immigration Local Government and Ethnic Affairs v Hamsher (1992) 35 FCR 359 Warren v Coombes (1979) 142 CLR 531 CLUBS AND ASSOCIATIONS - rugby league - constitution and by- laws of organiser and clubs participating in competition - review of cases concerning rugby league in New South Wales. Adamson v New South Wales Rugby League Ltd (1991) 27 FCR 535, rev'd (1991) 31 FCR 242 Bernasconi v Bellew (22 November 1983, S Ct NSW/Helsham J, unreported) Hawick v Flegg (1958) 75 WN(NSW) 255 McKinnon v Grogan [1974] 1 NSWLR 295 Tutty v Buckley (1970) 92 WN(NSW) 329, and on appeal (1971) 125 CLR 353 Wayde v New South Wales Rugby League Ltd (1989) 9 ACLR 349 (NSW S Ct/Hodgson J); (1985) 1 NSWLR 86; (1985) 180 CLR 459 CONTRACT - whether clubs are members of New South Wales Rugby League Ltd ("League") - whether clubs are bound by statutory contract constituted by memorandum and articles of association - Corporations Law, s.180(1). CONTRACT - whether contract constituted by acceptance of club's application to participate in 1995 national competition - terms of contract - whether clubs obliged not to act in a manner prejudicial to the interests, welfare and image of the League. CONTRACT - implied obligation to do all reasonably necessary to secure performance of contract for 1995 competition - duration and scope of implied obligation - whether launch and promotion of rival "Super League" competition during 1995 national competition breached implied obligation - remedies for breach of implied term. http://www.austlii.edu.au/au/cases/cth/federal_ct/96000870.html 15/10/96 News Limited & ors v Australian Rugby Footbal... Page 2 of 190 CONTRACT - effect of Commitment and Loyalty Agreements entered into between League and participating clubs - whether consideration illusory - whether duty of good faith implied. TORT - finding that players and club officials breached contractual obligations owed to clubs - whether finding can stand - whether inducement of such breaches constitutes unlawful interference with the League's undertaking - whether cause of action recognised in Australian law remitted for further consideration. TORT - unlawful inducement of breach of contract - whether tort can be committed where contract subsequently declared void by the court. REMEDIES - availability of remedy of constructive trust for clubs' breach of contract and rival competition organiser's tort of inducing breach of contract - damages as remedy - whether injunctive relief appropriate. Australian and New Zealand Banking Group Ltd v Westpac Banking Corporation (1988) 164 CLR 662 Bailey v New South Wales Medical Defence Union Ltd (1995) 184 CLR 399 Baumgartner v Baumgartner (1987) 164 CLR 137 Blyth Chemicals Limited v Bushnell (1933) 49 CLR 66 Muschinski v Dodds (1985) 160 CLR 583 CORPORATIONS LAW - whether clubs acted inconsistently with objects in breach of Corporations Law, s 162(2) - whether any remedy available for such a breach - matter remitted for further consideration. Corporations Law, s 162(2) PRACTICE AND PROCEDURE - joinder of parties - whether players and coaches signing with Super League necessary parties under Federal Court Rules Order 6, rr 7, 8 - whether orders should be set aside by reason of non-joinder - whether players' and coaches' rights and liabilities directly affected by orders - relevant test to apply when issue arises after final orders made - whether letter to players and coaches notifying of proceedings sufficient to justify non-joinder - whether non-joinder of 'necessary parties' cured by permitting to make submissions on form of orders. Federal Court Rules, Order 6 rr 7,8 Associated Growers Co-Operative Limited v Hubbard Properties Pty Ltd (1986) 42 SASR 321 Grovenor v Permanent Trustee Company of NSW Limited (1966) 40 ALJR 329 Pegang Mining Ltd v Choong Sam [1969] 2 MLJ 52 EQUITY - fiduciary duties - whether fiduciary duties existed between League and participating clubs - discussion of principles governing existence of fiduciary relationships - whether relationship between parties could be described as one of "mutual trust and confidence" - significance of League's control over clubs and clubs' right to withdraw - discussion of indicia of fiduciary relationships. Baumgartner v Baumgartner (1987) 164 CLR 137 Birtchnell v Equity Trustees Executor (1929) 42 CLR 384 http://www.austlii.edu.au/au/cases/cth/federal_ct/96000870.html 15/10/96 News Limited & ors v Australian Rugby Footbal... Page 3 of 190 Chan v Zacharia (1984) 54 CLR 178 Coomber, In re; Coomber v Coomber [1911] 1 Ch 723 Hodgkinson v Simms [1994] 3 SCR 377 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Kelly v C A & L Bell Commodities Corporation Pty Ltd (1989) 18 NSWLR 248 Mabo v Queensland (No.2) (1992) 175 CLR 1 Muschinski v Dodds (1985) 160 CLR 583 Noranda v Lachlan Resources NL (1988) 14 NSWLR 1 Norich Winterhur Insurance (Australia) Ltd v Australian Associated Motor Insurers Ltd (18 July 1996, S Ct Vic/Brooking J, unreported) United Dominions Corporation Limited v Brian Limited (1985) 157 CLR 1 United States Surgical Corporation v Hospital Products International Limited [1983] 2 NSWLR 157 Woodson (Sales) Pty Limited v Woodson (Australia) Pty Limited (12 July 1996, S Ct NSW/Santow J, unreported) TRADE PRACTICES - exclusionary provisions - whether Commitment and Loyalty Agreements contained exclusionary provisions within the meaning of Trade Practices Act 1974 (Cth), ss 4D and 45 - whether clubs in competition to retain services of competition organiser - whether clubs in competition for services of rival competition organiser - whether clubs in competition for services of premier players - meaning of 'likely' in construction of Trade Practices Act 1974 , s 4D(2) - relevance of players' contracts being contracts of service - whether clubs were parties to contract, arrangement or understanding for the purpose of Trade Practices Act, s 45(2)(a)(ii) - whether clubs and League had an exclusionary purpose - effect of contravention - whether services provided in trade and commerce. TRADE PRACTICES - relief under Trade Practices Act, s 87(2)(a) - Trade Practices Act, s 45(2) - whether contractual provisions are void ab initio. TRADE PRACTICES - severance pursuant to Trade Practices Act, s.4L - whether invalid exclusionary provisions severable from Commitment and Loyalty Agreements - whether severance would materially change intent of agreements. Trade Practices Act, 1974 (Cth), ss 4D, 45, 87(2) British Basic Slag Ltd's Agreements, Re [1963] 2 All ER 807 Carlton and United Breweries Limited v Castlemaine Tooheys Limited (1986) 161 CLR 543 Carney v Herbert [1985] AC 301 (PC) Dowling v Dalgety Australia Limited (1992) 34 FCR 109 Eastern Express Pty Limited v General Newspapers Pty Limited (1991) 30 FCR 385 The King and the Attorney-General of the Commonwealth v The Associated Northern Collieries (1912) 14 CLR 387 http://www.austlii.edu.au/au/cases/cth/federal_ct/96000870.html 15/10/96 News Limited & ors v Australian Rugby Footbal... Page 4 of 190 McFarlane v Daniell (1938) 38 SR(NSW) 337 Radio 2UE Sydney Pty Ltd v Stereo F.M. Pty Ltd (1982) 62 FLR 437 Stationers Supply Pty Ltd v Victorian Authorised Newsagents Association Ltd (1993) 44 FCR 35 Theatre Enterprises Inc v Paramount Film Distribution Corporation 346 US 537 (1958) Thompson v Australian Capital Television Pty Ltd (1994) 54 FCR 513 Tillmans Butcheries Pty Ltd v Australian Meat Industry Employees' Union (1979) 42 FLR 331 Trade Practices Commission v Email (1980) 43 FLR 383 Trade Practices Commission v Milreis (1977) 29 FLR 144 NEWS LIMITED & ORS v AUSTRALIAN RUGBY FOOTBALL LEAGUE LIMITED & ORS NG 213/96 BRISBANE BRONCOS RUGBY LEAGUE FOOTBALL CLUB LIMITED & ORS v AUSTRALIAN RUGBY FOOTBALL LEAGUE LIMITED & ORS NG 227/96 COWBOYS RUGBY LEAGUE LIMITED v AUSTRALIAN RUGBY FOOTBALL CLUB LIMITED & ORS NG 228/96 LOCKHART, VON DOUSSA, SACKVILLE JJ. SYDNEY 4 OCTOBER, 1996 IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY ) GENERAL DIVISION ) ON APPEAL FROM A JUDGE OF THE FEDERAL COURT MATTER NO. NG 213 OF 1996 BETWEEN: NEWS LIMITED First Appellant SUPER LEAGUE PTY LIMITED Second Appellant AH IL PTY LIMITED AH GC PTY LIMITED http://www.austlii.edu.au/au/cases/cth/federal_ct/96000870.html 15/10/96 News Limited & ors v Australian Rugby Footbal... Page 5 of 190 AH EA PTY LIMITED AH CR PTY LIMITED AH CT PTY LIMITED AH CB PTY LIMITED AH BR PTY LIMITED AH BA PTY LIMITED AH MN PTY LIMITED AH NE PTY LIMITED AH NO PTY LIMITED AH NQ PTY LIMITED AH WR PTY LIMITED AH WE PTY LIMITED AH SG PTY LIMITED AH SQ PTY LIMITED AH SO PTY LIMITED AH PE PTY LIMITED AH PA PTY LIMITED AH AU PTY LIMITED Third to Twenty-Second Appellants AND: AUSTRALIAN RUGBY FOOTBALL LEAGUE LIMITED First Respondent NEW SOUTH WALES RUGBY LEAGUE LIMITED Second Respondent BRISBANE BRONCOS RUGBY LEAGUE CLUB LIMITED CANBERRA DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED CANTERBURY-BANKSTOWN RUGBY LEAGUE CLUB LTD CRONULLA-SUTHERLAND DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED COWBOYS RUGBY LEAGUE FOOTBALL LIMITED WESTERN REDS RUGBY LEAGUE FOOTBALL CLUB LIMITED PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED http://www.austlii.edu.au/au/cases/cth/federal_ct/96000870.html 15/10/96 News Limited & ors v Australian Rugby Footbal... Page 6 of 190 AUCKLAND WARRIORS RUGBY LEAGUE LIMITED SYDNEY BULLDOGS LIMITED Third to Eleventh Respondents SOUTH SYDNEY DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED EASTERN SUBURBS DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED ST.