Cao v Apollo Phoenix Resources Pty Ltd (No 2)

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FEDERAL COURT OF AUSTRALIA

Cao v Apollo Phoenix Resources Pty Ltd [2019] FCA 1113

Appeal from: Application for leave to appeal: Cao v Apollo Phoenix Resources Pty Ltd (No 2) [2019] FCA 469
File number: NSD 557 of 2019
Judge: LEE J
Date of judgment: 5 July 2019
Legislation: Federal Court of Australia Act 1976 (Cth) Pt VB
Cases cited:

FAI General Insurance Co Ltd v Southern Cross Exploration NL [1988] HCA 13; (1988) 165 CLR 268

Australian Competition and Consumer Commission v Dataline.net.au Pty Ltd [2005] FCA 153

Cao v Apollo Phoenix Resources Pty Ltd(No 2) [2019] FCA 469

Deangrove Pty Ltd (Receivers and Managers Appointed) v Commonwealth Bank of Australia [2001] FCA 173; (2001) 108 FCR 77

Hutchinson v Comcare [2017] FCA 136

LFDB v SM [2017] FCAFC 178: (2017) 256 FCR 218

Lowe v Mack Trucks Australia Pty Ltd [2001] FCA 388

Nucoorilma Clan of the Gamilaaroy Aboriginal People v NSW Minister for Land & Water Conservation [2009] FCA 1043

Sammy Russo Meat Supplies Pty Ltd v Australian Safeway Stores Pty Ltd [1999] FCA 1381

Skinner v Commonwealth of Australia [2012] FCA 1194

Wiri People #2 v State of Queensland [2006] FCA 1069

Brocx v Hughes [2010] WASCA 57; (2010) 41 WAR 84

Skahill v Kestral Holdings Pty Ltd (in liq) [2000] WASCA 185

Date of hearing: 5 July 2019
Registry: New South Wales
Division: General
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Category: No Catchwords
Number of Paragraphs: 16
Counsel for the Applicant: Mr C Carter
Solicitor for the Applicant: Australian Business Lawyers & Advisors
Counsel for the First Respondent: Mr P Silver
Solicitor for the First Respondent: Mills Oakley
Counsel for the Second and Third Respondent: Mr A P Coleman SC
Solicitor for the Second and Third Respondent: Fairweather Litigation

ORDERS

NSD 557 of 2019
BETWEEN:

ZHONG CAO

Applicant

AND:

APOLLO PHOENIX RESOURCES PTY LTD

Respondent

JUDGE:

LEE J

DATE OF ORDER:

5 JULY 2019

THE COURT ORDERS THAT:

1.The application of the respondents for the dismissal of the application for leave to appeal be adjourned sine die.

2.The time to pay the amounts referred to in orders 1, 2 and 3 made by consent on 30 May 2019 be extended to 5pm on 31 July 2019.

3.The applicant pay the respondents’ costs thrown away by the adjournment of the application to dismiss the application for leave to appeal, with such costs to be paid on an indemnity basis.

4.In the event that payment does not occur in accordance with order 2, in respect of which time is of the essence, then the application for leave to appeal is to be dismissed with costs.

5.In the event that payment is made in accordance with order 2, then the parties have leave to approach the Associate to Lee J in Chambers to obtain a hearing date for the application for leave to appeal.

6.On or by 31 July 2019, the applicant file any affidavit explaining the…

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Details
Case
[2019] FCA 1113
Decision Date

CaseChat Overview and Summary

The matter before the court involved an application for leave to appeal against an earlier decision, with the applicant being Cao and the respondent being Apollo Phoenix Resources Pty Ltd. The primary dispute centred around the procedural aspects of the appeal process, specifically regarding the timeliness and manner of payments made by the applicant towards legal fees. This case was heard in the Federal Court of Australia, which has jurisdiction over matters of corporations law.

The court was tasked with addressing several legal issues. Firstly, it had to consider whether the application for leave to appeal should be dismissed due to the respondents’ contention that the applicant had not complied with certain court orders. Secondly, the court needed to determine whether the applicant's payments of legal fees were made in a manner that adhered to the orders of the court, particularly in light of the applicant's preference to make these payments over complying with other outstanding orders.

The court found that the application for the dismissal of the appeal should be adjourned indefinitely, allowing the applicant time to address the payment issues. The court extended the deadline for payment of certain amounts and required the applicant to pay the respondents' costs associated with the adjournment on an indemnity basis. Furthermore, the court stipulated that if the payments were not made by the extended deadline, the application for leave to appeal would be dismissed with costs. Conversely, if the payments were made on time, the parties could then seek a hearing date for the application. Finally, the applicant was directed to file an affidavit explaining the circumstances of the payments made on specified dates and why those payments were prioritised over others.

In summary, the court's orders provided a structured pathway for the applicant to rectify the payment issues, with significant consequences if the applicant failed to meet the new deadlines. The case underscores the importance of adhering to court orders and the potential ramifications of failing to do so.

Orders

Orders of the court

1. The application of the respondents for the dismissal of the application for leave to appeal be adjourned sine die.

2. The time to pay the amounts referred to in orders 1, 2 and 3 made by consent on 30 May 2019 be extended to 5pm on 31 July 2019.

3. The applicant pay the respondents’ costs thrown away by the adjournment of the application to dismiss the application for leave to appeal, with such costs to be paid on an indemnity basis.

4. In the event that payment does not occur in accordance with order 2, in respect of which time is of the essence, then the application for leave to appeal is to be dismissed with costs.

5. In the event that payment is made in accordance with order 2, then the parties have leave to approach the Associate to Lee J in Chambers to obtain a hearing date for the application for leave to appeal.

6. On or by 31 July 2019, the applicant file any affidavit explaining the circumstances of the payment of amounts for legal fees on 18 May 2019 and 24 June 2019, and why the payment of those accounts were preferred over complying with the then extant orders of the Court.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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