Black Label Developments Pty Ltd v McMenemy

Black Label Developments Pty Ltd sought a stay of a judgment obtained in the NSW District Court by McMenemy, in proceedings concerning a dispute arising from a residential building contract. The initial dispute was related to an owner occupier construction contract, and a deed of variation of the contract. Black Label Developments sought to have the deed set aside on various grounds, including duress, undue influence, unconscionable conduct, and misleading or deceptive conduct, and also under the Contracts Review Act 1980. The Court was required to determine whether the stay should be granted and, if so, on what conditions.

The Court considered whether Black Label Developments' application for a stay met the criteria set out in section 135 of the Civil Procedure Act 2005. It was noted that the applicant had a real prospect of success in setting aside the deed, and that the application would involve complex issues of fact and law. The Court held that the applicant had demonstrated that there were serious issues to be tried, and that the balance of convenience favoured granting a stay. The Court also considered the position of third parties, and was satisfied that it would be just and convenient to grant the stay on the condition that Black Label Developments paid the judgment sum into court.

Accordingly, the Court granted a stay of the enforcement of the judgment and orders in the District Court proceedings, on the condition that Black Label Developments paid the judgment sum into court within 7 days. The Court also ordered that Black Label Developments pay McMenemy's costs of the motion, and that both sets of proceedings be stood over for directions to the List Judge for 15 November 2024. The Court held that the stay was necessary to prevent unfairness and to ensure that the issues raised by the applicant could be properly ventilated in the proceedings.