Fighting in a Foreign Court - Example 4

Global business frequently brings litigation in foreign (interstate and international) forums.

My Victorian client sold heavy machinery to their Northern Territory-based customer. The customer brought court proceedings in the Northern Territory, alleging that my client had sold them (what is colloquially referred to as) a ‘lemon’. 

We chose to not object to the use of the Northern Territory Court. However, upon receiving key documents from the customer, and appearing before the Court, it became clear that my client would likely lose at trial.

The customer was unwilling to negotiate a reasonable settlement. Therefore, to avoid a major loss, we brought a strike out application. We argued that the proceeding should have been brought in Victoria, not the Northern Territory.

I convinced the (hostile) Court in the Northern Territory that the customer agreed to our terms of trade (our Contract). Our Contract required that any dispute be litigated in a Victorian Court. Whilst the customer did not sign our Contract, their conduct, I successfully argued, demonstrated their agreement.

To enhance our victory, I then successfully argued that the customer should pay our costs of the entire Northern Territory proceeding. To win when one should, requires no great skill. But to extract victory from the jaws of defeat when failure appears inevitable, is truly rewarding.