Crowley v WorleyParsons Limited

Crowley, the plaintiff, commenced an investor class action against WorleyParsons Limited, the defendant, seeking damages for misleading or deceptive conduct. The action was brought under Part IVA of the Federal Court of Australia Act 1976. The primary legal issue before the Court was whether the Statement of Claim filed by the plaintiff should be struck out in whole or in part as being likely to cause embarrassment, as failing to disclose a reasonable cause of action, or as being otherwise an abuse of the process of the Court. WorleyParsons argued that the Statement of Claim should be struck out on these grounds.

The Court found that the plaintiff had a legitimate entitlement to supplement existing particulars in the Statement of Claim in the future as more information became available, especially given that the opposing litigant's state of mind was central to some of the causes of action. However, the plaintiff was subject to the supervision and control of the Court. The Court concluded that WorleyParsons had not made out its case that the Statement of Claim should be entirely struck out nor should specific paragraphs be struck out. Although the plaintiff was directed to amend his Statement of Claim in minor respects, the Court found that it should not be struck out in whole or in part. Consequently, the Interlocutory Application filed by WorleyParsons was dismissed with costs.

The Court also granted leave to the plaintiff to amend the current iteration of his Statement of Claim to clarify certain matters and ordered WorleyParsons to file its Defence. The matter was listed for further case management to consider the status of a competing class action in the Supreme Court of Victoria and to determine how best to deal with the existence of that other proceeding.