New Commercial Court Practice Note – Supreme Court of Victoria

Do you have carriage of proceedings in the Supreme Court of Victoria’s Commercial Court?  

If yes, this post is for you.

The Commercial Court has released an updated Practice Note SC CC 1 (second revision) which came into effect on 26 February 2024. It replaces the previous version from 21 December 2017.

The new Practice Note is refreshingly minimal, at only 11 main paragraphs. Read on for the main takeaways.

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A bit of VCAT's jurisdiction is restored

Some of the recent uncertainty regarding VCAT’s jurisdiction has resolved with the passing of the Justice Legislation Amendment Act 2023 (Vic) (JLAA) on 10 July 2023. Here’s what you need to know regarding limitations, contribution claims, and jurisdiction.

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Misleading and deceptive conduct in the sale of a business

Disputes regarding falsified figures from the sale of a business are commonplace in commercial litigation. The allegation is frequently heard that a vendor has misrepresented the amount of sales and profits from their business in order to “fatten the pig for market”. The Victorian Court of Appeal recently delivered a decision in H & Q Cafe Pty Ltd v Melbourne Cafe Pty Ltd & Anor [2023] VSCA 200 which contains important learnings for those involved in sale of business disputes.

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VCAT: what is happening with jurisdiction and limitation changes?

There’s been a flurry of online commentary about the recent cases which have curtailed VCAT’s jurisdiction recently.

I was going to write a post about it, but then the LPLC provided this great article prepared by Moray & Agnew.

In case you missed it, below are the key takeaways from the article. Well worth a read if any part of your practice involves proceedings in VCAT.

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Do unit holders in unit trusts have a proprietary interest in trust property?

This much discussed topic has been the subject of numerous authorities over the years, many of them well established.

Caveats are lodged all the time claiming a caveatable interest in unit trust property by unit holders and trust beneficiaries. This may be because the terms of the trust deed are silent on the question, the trust deed provisions are unclear, the authorities are nuanced, or perhaps the relevant practitioner was simply unclear on the law.

In this article, I’ll take you through CPT as well as the key state-based authorities which set out the main principles. Whether you’re applying to remove a caveat or resisting a removal application, there are good arguments both ways. I’ve set out this article to offer something for each position.

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New County Court Commercial Division Practice Note

The County Court has released a new Commercial Division Practice Note ‘Operation and Management of the Commercial Division’ PNCO 1 – 2019 (updated as at 26 March 2019) which supercedes eight previous practice notes. It deals with most issues concerning the running of commercial matters.  

The new practice note puts the County Court Commercial Division on a competitive footing with the Supreme Court’s commercial court, offering faster trial dates (within 6 months for standard matters), an Expedited Matters List (trial dates within 4 months), trial date certainty, unlimited jurisdiction regarding quantum, and efficient disposition of interlocutory steps. 

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Contribution and indemnity

‘Contribution and indemnity’ are concepts used to identify which defendant (or third party) is liable for a plaintiff’s loss, usually in a tort or contract case. Contribution refers to the dividing up of a plaintiff’s damages between two, or multiple parties found liable.  

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Third party proceedings

The third-party procedure enables liability between plaintiff and defendant, and defendant and third party to be determined concurrently, in the same proceeding. There can be no judgment against the third party until the court gives judgment against the defendant. There must be a nexus between all claims. 

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The loan, guarantee and wife. What is the law?

Women are better educated, participate in the workforce, and have greater financial independence than ever before. Despite that, cases of the “ill-informed wife” or the “unduly influenced wife” signing a guarantee are the subject of regular legal disputes. What is the relevant law?

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What constitutes a ‘memorandum or note’ pursuant to section 126 of the Instruments Act? 

If a key instrument requiring a signature (ie a loan, mortgage) has not been signed but surrounding documents which refer to the instrument have been signed, what should lawyers do? One of the most helpful provisions available in such circumstances is section 126 of the Instruments Act 1958 (Vic)

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Uncollected goods: what should landlords do upon termination of a retail lease?

This question arises in almost every retail lease matter involving rental arrears, termination and possession. The regime regarding uncollected goods is governed by the principles of bailment and by the Australian Consumer Law and Fair Trading Act 2012. The ACL stipulates three value categories of uncollected goods (low, medium, high) and outlines requirements for disposal of uncollected goods in each category. 

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Restraining the registrar of titles pursuant to Section 90(2) of the Transfer of Land Act 1958 (Vic) 

Various circumstances may require the registrar of titles to be restrained from taking action regarding a dealing in land. Section 90(2) of the Transfer of Land Act permits the court to restrain the registrar from dealing with land pending the determination of a dispute at a hearing or pending a further order.

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Applications to set aside a statutory demand: can supplementary materials be filed after the 21-day affidavit? 

In short, the answer is no. Section 459G of the Corporations Act requires an application to set aside a statutory demand to be supported by an affidavit within 21 days of service of the demand. Usually the facts for the setting aside application are known within the 21-day period. 

What should you do when there are unknown facts at the time of filing the application to set aside? For example, where there are inaccessible or unverifiable documents, or you are waiting on third parties to provide materials (eg accounting information), or further discovery is required?

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