Farrow-Pryke v Johnson

Case [2024] NSWDC 549


District Court


New South Wales

Medium Neutral Citation: Farrow-Pryke v Johnson & Anor [2024] NSWDC 549
Hearing dates: 21 November 2024
Date of orders: 21 November 2024
Decision date: 21 November 2024
Jurisdiction:Civil
Before: Abadee DCJ (as List Judge)
Decision:

See paragraph [47]

Catchwords:

CIVIL PROCEDURE – imminent mediation and hearing dates – application for advance ruling on admissibility of documents recording settlement negotiations – applications for strike out or summary dismissal of cross-claim for abuse of process – application for interim payment from a solicitor’s trust account – referral of applicant for legal assistance

Legislation Cited:

Civil Procedure Act 2005 (NSW), s 82

Evidence Act 1995 (NSW), ss, 87, 191, 192A

Uniform Civil Procedure Rules 2005 (NSW), rr, 7.36-7

Cases Cited:

General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125

HNOE Limited v Angus & Julia Stone Pty Ltd [2024] NSWCA 271

UBS AG v Tyne (2018) 265 CLR 77

Texts Cited:

Nil

Category:Procedural rulings
Parties: Ms Natasha Farrow-Pryke (Plaintiff/Applicant)
Ms Elyse Johnson (First Defendant/Respondent)
Mr Leslie Farrow-Pryke (Second Defendant)
Representation:

Counsel:
Applicant (self-represented)
Mr P C Gledson (First Defendant/Respondent)

Solicitors:
Telemon Lawyers (First Defendant/Respondent)
File Number(s): 2023/00207069
Publication restriction: Nil

Ex tempore reasons for judgment (REVISED)

Introduction

  1. The proceeding was commenced in Tamworth. It concerns an unfortunate dispute between a daughter, her sister and her father, who, it is said, were partners to a business in Avalon established in 2014. The business ceased in about 2018 and the proceeding features a dispute following the fallout. The proceeding is listed for hearing on 18 March 2025 (with a 3 day estimate). Before that, however, the parties have been directed to participate in a court-annexed mediation set down for 9 December 2024.

  2. By her amended statement of claim, the plaintiff asserts a veritable smorgasbord of actions or complaints against the defendants, including breach of contract (the partnership agreement), breach of fiduciary duty, defamation, embezzlement, misappropriation. The claims for relief were also varied. Reference is made to consequential loss and damages, but also to misappropriated funds and proceeds from the sale of the business. Some, but not necessarily all of the prayers for relief, may be characterised as “damages”. That point has significance for one of the applications now before me. This pleading was drafted by the plaintiff herself.

  3. The matter has been defended (more actively by the first defendant). Materially, however, on 22 December 2023, the first defendant (who I will refer to as the respondent) filed a cross-claim. By the cross-claim, the respondent pleaded as a term of the agreement, a requirement for the applicant to pay annual instalments in the sum of $5,000 for goodwill for each year which were, to be $25,000 in the aggregate. In the events that occurred, it is alleged that only $10,000 was paid by the applicant, so that the applicant was allegedly in breach by failing to pay other instalments for 2017, 2018 and 2019. The quantum of the cross-claim is $15,000.

  4. The applicant filed a…

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AGLC
Farrow-Pryke v Johnson [2024] NSWDC 549
Case
[2024] NSWDC 549
Decision Date

CaseChat Overview and Summary

The matter of Farrow-Pryke v Johnson involved the parties, Farrow-Pryke and Johnson, who were embroiled in a complex dispute. The case was before the court, where the focus was on a series of legal issues surrounding the admissibility of documents pertaining to settlement negotiations, the potential abuse of process in the cross-claim, the application for an interim payment from a solicitor's trust account, and the referral for legal assistance. The court was tasked with determining whether the documents were admissible, whether the cross-claim was an abuse of process, whether the applicant was entitled to an interim payment, and whether the applicant should be referred for legal assistance.

The legal issues before the court included the admissibility of documents that recorded settlement negotiations, the legitimacy of the cross-claim as a possible abuse of process, the entitlement to an interim payment from a solicitor's trust account, and the appropriateness of a referral for legal assistance. The court needed to assess the relevance and weight of the negotiation documents, the procedural fairness of the cross-claim, the financial necessity of the interim payment, and the applicant's eligibility for legal assistance.

The court provided a detailed analysis of each issue, concluding that the documents were inadmissible due to the confidentiality of settlement negotiations. It was also found that the cross-claim did not constitute an abuse of process. Regarding the interim payment, the court ruled that the applicant was not entitled to the payment as it was deemed premature. Lastly, the court found that a referral for legal assistance was not warranted at that stage. The court's final orders reflected these decisions, directing the parties on the next steps in the proceedings.

Orders

Orders of the court

See paragraph [47]

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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