Currububula Holdings Pty Ltd v Franxton Pty Ltd

The case before the court was between Currububula Holdings Pty Ltd, the plaintiff, and Franxton Pty Ltd, the defendant. The plaintiff sought a declaration that a contract between the parties was void and unenforceable, as well as an injunction preventing the defendant from enforcing the contract. The case was heard in the Supreme Court of New South Wales. The plaintiff's primary argument was that the contract was entered into under duress and undue influence, rendering it voidable. The defendants, including the second, third, and fourth, did not participate in the proceedings, while the fifth defendant did not oppose the substantive orders sought by the plaintiff. The central issue before the court was whether the fifth defendant's conduct in allowing the proceedings to be initiated and pursued was unreasonable. Additionally, the court had to determine if the second, third, and fourth defendants were complicit in the fifth defendant's actions.

The court found that the fifth defendant's conduct in allowing the proceedings to be initiated and pursued was unreasonable, given that there was no genuine dispute over the merits of the case. The court also determined that the second, third, and fourth defendants were complicit in the fifth defendant's actions, as they did not take any steps to contest the plaintiff's claims or provide any evidence to support their position. As a result, the court found that the defendants were jointly and severally liable for the costs of the proceedings. The court emphasised that it would have been reasonable for the plaintiff to seek costs from the second, third, and fourth defendants as well, given their inaction and complicity in the proceedings. However, the court ultimately decided to order the fifth defendant to pay the majority of the costs, as they were the only defendant who actively participated in the proceedings. The court also noted that the second, third, and fourth defendants could potentially be ordered to contribute to the costs if they were to bring an independent proceeding in the future.