FACTS
On 20 March 1992, Mr Lang Hancock executed a Deed declaring the four children of Mrs Gina Rinehart (Respondent) as equal beneficiaries of the Hancock Family Memorial Foundation Trust (HFMF Trust) and the Hope Margaret Hancock Trust (HMH Trust).
In October 2014, Mr John Hancock and Ms Bianca Rinehart (Appellants) commenced proceedings in the Federal Court against the Respondent and other parties. The Appellants allege in their Statement of Claim that the Respondent was in breach of the trusts and other equitable and contractual duties (Substantive
Claims).
The Respondent sought an order pursuant to s8(I) of the Commercial Arbitration Act 2010 (NSW) (the Act) to refer the proceedings to arbitration. The application relied on a number of deeds (the Deeds) entered into between the appellants and various respondents between September 2003 and November 2010. The appellants allege that their signing of the deeds was subject to misconduct by the Respondent (Validity Claims). It is also alleged that the Respondent transferred mining tenements from parties to the Hope Downs Deed to third party companies.
ISSUES
1. Whether the validity claims were subject to the arbitral clauses in the Deeds;
2. Whether there is a distinction between disputes “arising under” and those “arising out of”
agreements; and
3. Whether third-party companies are privy to the agreements.
