Cleary v Jeans

Case [2006] NSWCA 9


Reported Decision: 65 NSWLR 355

Court of Appeal


CITATION: Cleary v Jeans [2006] NSWCA 9
HEARING DATE(S): 12 September 2005
 
JUDGMENT DATE: 

9 February 2006
JUDGMENT OF: Handley JA at 1; Bryson JA at 39; Young CJ in Eq at 59
DECISION: Appeal dismissed with costs
CATCHWORDS: ABUSE OF PROCESS – earlier proceedings based on estoppel – later proceedings against another party based on the truth – later proceedings not abuse of process - ESTOPPEL – representation conveyed by pleadings and affidavits – capable of supporting estoppel against amendment of pleadings - RES JUDICATA - Anshun estoppel – not available in proceedings for fraud inducing conduct creating estoppel enforced in earlier proceedings - RES JUDICATA - abuse of process – collateral challenge to prior decision – no abuse where prior decision based on estoppel and later proceedings based on truth - D
CASES CITED: Armagas Ltd v Mundogas SA [1986] AC 717
Arthur J S Hall & Co. v. Simons [2002] 1 AC 615
Bloomenthal v Ford [1897] AC 156
Boileau v Rutlin (1848) 2 Exch 665 [154 ER 657]
Clark v Urquhart [1930] AC 28
Commonwealth v Verwayen (1990) 170 CLR 394
Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising and Addressing Co Pty Ltd (1975) 133 CLR 72
Cropper v Smith (1884) 26 Ch D 700 CA
D’orta-Ekenaike v Victoria Legal Aid (2005) 79 ALJR 755
Deangrove Pty Ltd (Receivers and Managers Appointed) and Anor v. Commonwealth Bank of Australia [2003] FCA 470
Giannarelli v Wraith (1988) 165 CLR 543
Godfroy v Dalton (1830) 6 Bing 460
Grundt v Great Boulder Proprietary Gold Mines Ltd (1938) 59 CLR 641
Heskell v Continental Express Ltd [1950] 1 All ER 1033
Hudgell Yeates & Co v Watson [1978] QB 451 CA
Hunter v. Chief Constable of the West Midlands Police [1982] AC 529
In re Savoy Estate Ltd [1949] Ch 622 CA
Jago v. District Court of New South Wales (1989) 168 CLR 23
Jamieson v R (1993) 177 CLR 574
Jeans v Cleary [2004] NSWSC 1245
Jeans v Commonwealth Bank (2003) 204 ALR 327
Michaels v Commonwealth (2002) 124 FCR 473
Palmer v Durnford Ford [1992] QB 483
Queensland v J L Holdings Pty Ltd (1997) 189 CLR 146
R v Balfour; Ex Parte Parkes Rural Distributions Pty Ltd (1987) 17 FCR 26
R v Humphrys [1977] AC 1
Reichel v Magrath (1889) 14 App Cas 665
Rippon v Chilcotin Pty Ltd (2001) 53 NSWLR 198
Rogers v R (1994) 181 CLR 251
Secretary of State for Trade and Industry v Bairstow [2004] Ch 1
Shannon v Lee Chun (1912) 15 CLR 257
Smith New Court Securities Ltd v Citibank NA [1997] AC 254
Smith v Linskills [1996] 1 WLR 763
Toteff v Antonas (1952) 87 CLR 647
Walpole v Partridge & Wilson [1994] QB 106
Walton v. Gardiner (1993) 177 CLR 378
PARTIES: Stephen Thomas Cleary (Claimant)
John Anthony Jeans (Opponent)
FILE NUMBER(S): CA 41197 of 2004
COUNSEL: A Bell SC/D McLure (Claimant)
J…

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Cleary v Jeans [2006] NSWCA 9
Case
[2006] NSWCA 9
Decision Date

CaseChat Overview and Summary

The parties to this appeal were Cleary (appellant) and Jeans (respondent). The dispute concerned whether the respondent's later proceedings constituted an abuse of process, given earlier proceedings between the parties. The appeal was heard in the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the respondent's subsequent claim, which was based on the truth of certain facts, was an abuse of process when earlier proceedings involving the same parties had been determined on the basis of an estoppel arising from pleadings and affidavits. The Court also considered whether the doctrine of *res judicata*, specifically *Anshun* estoppel, applied to prevent the later proceedings.

The Court reasoned that the earlier proceedings were decided on the basis of an estoppel, which prevented the appellant from amending their pleadings to assert the truth of the facts in question. The respondent's later proceedings, however, were brought to establish the truth of those very facts. The Court held that the respondent was not estopped from pursuing these later proceedings, as they were not seeking to relitigate the same issue that had been decided in the earlier proceedings. Instead, the later proceedings were based on the underlying truth of the matter, which had not been determined in the first instance. The Court distinguished this situation from a collateral challenge to a prior decision, finding no abuse of process where the prior decision was based on estoppel and the later proceedings were based on the truth.

The appeal was dismissed, and the respondent was awarded costs.

Orders

Orders of the court

Appeal dismissed with costs

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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