Durolek v Pier (WA) Pty Ltd [No 2]

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JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

TITLE OF COURT :   THE COURT OF APPEAL (WA)

CITATION:   DUROLEK -v- PIER (WA) PTY LTD [No 2] [2019] WASCA 138

CORAM:   QUINLAN CJ

MITCHELL JA

VAUGHAN JA

HEARD:   15 AUGUST 2019

DELIVERED          :   5 SEPTEMBER 2019

FILE NO/S:   CACV 78 of 2018

BETWEEN:   BELINDA DUROLEK

Appellant

AND

PIER (WA) PTY LTD as trustee for ISANDI TRUST

First Respondent

JEAN MAURICE PTY LTD (IN LIQUIDATION) (ACN 155 115 656)

Second Respondent

FRANCK DUROLEK

Fourth Respondent

ON APPEAL FROM:

Jurisdiction              :   SUPREME COURT OF WESTERN AUSTRALIA

Coram:   KENNETH MARTIN J

Citation:   PIER (WA) PTY LTD AS TRUSTEE FOR ISANDI TRUST -v- JEAN MAURICE PTY LTD (IN LIQ)

[No 6] [2018] WASC 204

File Number             :   CIV 2935 of 2016


Catchwords:

Practice and procedure - Case management - Judgment and orders - Springing or self‑executing orders - Springing order made in relation to freezing or ancillary orders - Whether principles in Firmware Technologies Inc v Asia Platinum Group Ltd applicable - Where no relevant non‑compliance by defendant and defendant unable to effect compliance

Appeal - Right to appeal - Challenge against interlocutory order in appeal against final judgment - Whether springing order affected the final result

Legislation:

Nil

Result:

Appeal allowed

Category:    B

Representation:

Counsel:

Appellant : Mr L A Warnick
First Respondent : Mr K A Dundo
Second Respondent : No appearance
Fourth Respondent : No appearance

Solicitors:

Appellant : Havilah Legal
First Respondent : KD Legal (Perth)
Second Respondent : No appearance
Fourth Respondent : No appearance

Case(s) referred to in decision(s):

Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175

Bourke v State Bank of New South Wales [1995] FCA 139

Burns v Lipman [1975] HCA 2; (1975) 132 CLR 157

Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571

Computer Edge Pty Ltd v Apple Computer Inc [1984] HCA 47; (1984) 54 ALR 767

Dallas Development Corporation Pty Ltd v Western Australian Land Authority [2000] WASCA 49

David Syme & Co Ltd v Lloyd [1984] 3 NSWLR 346

Durolek v Pier (WA) Pty Ltd [2018] WASCA 187

Electricity Commission of New South Wales v Lapthorne [1971] HCA 11; (1971) 124 CLR 177

Equuscorp Pty Ltd v Haxton [2012] HCA 7; (2012) 246 CLR 498

Fidelitas Shipping Co Ltd v V/O Exportchleb [1966] 1 QB 630

Firmware Technologies Inc v Asia Platinum Group Ltd [2016] WASCA 179

Freeman v Rabinov [1981] VR 539

Gerlach v Clifton Bricks Pty Ltd [2002] HCA 22; (2002) 209 CLR 478

Hahn v Conley [1971] HCA 56; (1971) 126 CLR 276

Hytec Information Systems Ltd v Coventry City Council [1997] 1 WLR 1666

Illawarra Hotel Company Pty Ltd v Walton Construction Pty Ltd [2012] NSWCA 61

Major Engineering Pty Ltd v Timelink Pacific Pty Ltd [2007] VSCA 228

Michael Wilson & Partners Ltd v Nicholls [2011] HCA 48; (2011) 244 CLR 427

National Australia Bank Ltd v Maher (No 2)

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Details
Case
[2019] WASCA 138
Decision Date

CaseChat Overview and Summary

In Durolek v Pier (WA) Pty Ltd [No 2], the Western Australian Supreme Court considered the validity and application of a springing order made by the case manager in relation to a freezing order. The case involved a dispute between the parties Durolek and Pier (WA) Pty Ltd, with the court being tasked with deciding the legality and fairness of the springing order. The legal issues centred around whether the springing order was justified under the court's inherent jurisdiction and the rules governing case management. The court needed to determine if the criteria set out in Firmware Technologies Inc v Asia Platinum Group Ltd were applicable and whether the order was just and necessary given the circumstances of the case.

The court's reasoning was thorough, examining the principles behind the issuance of springing orders and the balance between procedural fairness and the need to enforce court orders. It found that while the case manager had the authority to issue such orders, the decision to do so must be based on clear and just grounds. The court emphasised that springing orders should only be used as a last resort and when no other sanctions are sufficient to ensure a fair determination of the case. It highlighted the importance of ensuring that the criteria for compliance are clear and that the execution of the order does not unfairly prejudice the defendant's ability to argue unrelated matters. The court concluded that in this case, the springing order was not justified because there was no significant non-compliance by the defendant, and the order had the potential to affect the final result of the appeal.

Ultimately, the court allowed the appeal and set aside the springing order, finding that it had not been made on just and appropriate grounds. This decision underscores the need for careful consideration before issuing springing orders and the importance of adhering to the principles of procedural fairness and justice in the administration of court processes.

Orders

Orders of the court

Appeal allowed

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

In this court the parties assumed that the primary judge made the springing order as an 'enforcement order'[101] under the power granted to a case manager by O 4A r 5(2)(c).[102] Such an order may be made at any time on the case manager's own initiative after notification.[103] Under O 4A r 5(2)(c) a springing or self-executing order may be made by way of enforcement order as the case manager 'considers just'. There is also a power to make a springing order in the court's inherent jurisdiction.[104] The same broad criterion of whether the order is 'just' informs the exercise of the inherent jurisdiction.[101] Rules of the Supreme Court 1971 (WA) O 4A r 3(c).[102] See WAB 287 (par 21), WAB 310 (par 17).[103] Rules of the Supreme Court, O 4A r 5(1)(a).[104] Dallas Development Corporation Pty Ltd v Western Australian Land Authority [2000] WASCA 49 [9]. Traditionally springing orders have been made in cases of contumacy (ie an intentional perverse and obstinate resistance of authority),[105] persistent dilatory behaviour and where it can be inferred that a litigant will not or is unlikely to take steps as required.[106] Those instances do not exhaust the circumstances in which it may be just to take the drastic step of making a springing order.[107] For example, the court may act to support the integrity of its processes where otherwise the administration of justice would be brought into disrepute.[105] Hytec Information Systems Ltd v Coventry City Council [1997] 1 WLR 1666, 1673.[106] Freeman v Rabinov [1981] VR 539, 544.[107] See eg Dallas DevelopmentCorporation Pty Ltd v Western Australian Land Authority [22]. In Firmware the Court of Appeal mentioned five reasons why a springing order should not have been made in that case.[108] Those matters are not exhaustive criteria[109] which establish when a springing order should be made. The touchstone remains whether the order is just. Nevertheless, the reasons given in Firmware provide useful guidance as to some of the relevant considerations for a case manager in determining whether or not to make a springing order.[108] Firmware [44] - [48].[109] Cf Pier No 2 [21]; BAB 198. Adapting the five matters enunciated in Firmware:(1)Where the basis for the springing order is non-compliance with an order of the court consideration should be given to whether the delay has been inordinate. A springing order should ordinarily only be made where a party has, by its conduct, shown a contumelious disregard to compliance with orders of the court.(2)A springing order should only be made where there is no other available sanction which is appropriate and sufficient to enable the court to determine the matter consistently with the goal and objects in O 1 r 4A and r 4B of the Rules of the Supreme Court 1971 (WA) - in particular the fair and just determination of the litigation. The fair and just determination of the litigation encompasses the concern of procedural fairness expressed in Firmware. The concept acknowledges that a point will be reached where a litigant will have been accorded a sufficient opportunity and that no litigant has an absolute right to avail itself of procedural steps when it has failed to take advantage of its opportunity.[110](3)A springing order sought by way of an enforcement order to secure compliance with a pre-trial case management direction should not be made if its execution would prevent the party from advancing an argument unrelated to the procedural step the subject of the intended springing order.(4)A springing order should only be made if the criterion for compliance is clear and unequivocal.(5)Springing orders should ordinarily only be made as a last resort when necessary to enable the court to fairly and justly determine the substantive matter in dispute. In that regard, before making a springing order, a case manager should take into account the fact that the self-executing nature of a springing order is such that, once made and absent an extension of time for compliance, the only question is whether the order has been complied with. There is no further assessment of the merits of the case or whether it is in the interests of justice for judgment to be entered.[110] Cf Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175 [94], [102], [112].