Davies v Chicago Boot Co Pty Ltd (No 2)

The Davies v Chicago Boot Co Pty Ltd (No 2) case involved the liquidators of the Chicago Boot Co Pty Ltd who sought to amend a pleading to add a claim outside the time limit. The primary judge allowed the amendment, but this decision was appealed and subsequently set aside by a single judge. The liquidators further appealed against this decision. The central issue was whether the Supreme Court Rules could permit an amendment to a pleading to add a claim outside the time limit, particularly in light of section 588FF of the Corporations Law. The court was required to determine if the proposed claim was barred by section 588FF and whether the Supreme Court Rule 53 was applicable.

The court considered the Full Federal Court's decision in Rodgers v Commissioner of Taxation, which held that an amendment to pleadings could be permitted to raise a claim outside the statute of limitations, as long as the action had been commenced within the statutory period. The Full Federal Court reasoned that the limitation period was procedural rather than substantive, and an amendment to the pleading would operate retrospectively to the date of the original pleading, thereby satisfying the limitation requirement. This reasoning was consistent with the Supreme Court Rules, including rule 53. The court found that the primary judge's decision conflicted with the reasoning in Rodgers and the broader principles established in case law. Consequently, the appeal was allowed, and the decision of the primary judge refusing the application was set aside. The matter was remitted to the Master for hearing and determination.

The final orders of the court were to allow the liquidators' appeal, set aside the decision of the primary judge, and remit the matter to the Master for further proceedings in accordance with the court's reasons. This decision reaffirmed the principle that procedural limitations can be overcome by an amendment to pleadings, provided the action was initiated within the statutory period.