Galati v Deans (No 2)

Case [2018] NSWSC 1813


Supreme Court


New South Wales

Medium Neutral Citation: Galati v Deans (No 2) [2018] NSWSC 1813
Hearing dates: 29 October 2018
Date of orders: 28 November 2018
Decision date: 28 November 2018
Jurisdiction:Equity
Before: Ward CJ in Eq
Decision:

1.   Dismiss the plaintiffs’ application for leave to file the proposed amended statement of claim annexed to the notice of motion dated 28 June 2018.
2.   Direct the plaintiffs to serve any further proposed amended statement of claim limited to causes of action against the existing first to third defendants and not including the claims for relief at prayers 4D or 4F (or 4C to the extent that this would affect the rights or interests of the proposed additional defendants) by no later than 12 December 2018 and, if there is objection by the existing defendants to leave being granted for the filing of that amended pleading, the existing defendants file and serve brief written submissions on or before 16 January 2019 and the plaintiffs file and serve any submissions in reply by 23 January 2019 with a view to the issue being determined on the papers.
3.   The plaintiffs to pay the costs of the first to third defendants and of the proposed fifth to eighteenth defendants of the application for leave to amend.
4.   Liberty to the parties to apply on 3 business days’ notice.
5. Stand the matter, including the plaintiffs’ extant notice of motion for injunctive relief, over for directions before me at 9.30am on 1 February 2019

Catchwords: CIVIL PROCEDURE – pleadings – amendment – leave to amend refused – opportunity granted for plaintiffs to serve proposed further amended pleading in relation to one category of amendments – finding that to permit second category of amendments would give rise to abuse of process
Legislation Cited: Broadcasting Act 1942 (Cth)
Civil Procedure Act 2005 (NSW), ss 56, 57, 58, 64
Civil Procedure Act 2010 (Vic), s 63(1)
Companies (NSW) Code 1981 (NSW), s 68A
Corporations Act 2001 (Cth), ss 127(1), 128, 129, 188(1), 205B(5), 236(3), 237
Uniform Civil Procedure Rules 2005 (NSW), rr 6.24, 14.28(1)(c), 36.15, 36.16
Cases Cited: Abela v Giew (1964) 81 WN (Pt 1) (NSW) 344
ACN 074 971 109 v The National Mutual Life Association of Australasia Ltd [2010] VSC 186
Allstate Life Insurance Co v Australia & New Zealand Banking Group Ltd (1995) 58 FCR 26
Aon Risk Services Australia Ltd v Australian National University (2009) 239 CLR 175; [2009] HCA 27
Bishopsgate Insurance Australia Ltd (in liq) v Deloitte Haskins & Sells [1999] 3 VR 863
Brisbane South Regional Health Authority v Taylor (1996) 186 CLR 541; [1996] HCA 25
Burrell v The Queen (2008) 238 CLR 218; [2008] HCA 34
CA & CA Ballan Pty Ltd v Oliver Hume (Australia) Pty Ltd [2017] VSCA 11
Caason Investments Pty Ltd v Cao (2015) 236 FCR 322; [2015] FCAFC 94
Canberra Residential Developments Pty Ltd v Brendas (2010) 273 ALR 601; [2010] FCAFC 125
Clough and…

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Galati v Deans (No 2) [2018] NSWSC 1813
Case
[2018] NSWSC 1813
Decision Date

CaseChat Overview and Summary

The case of Galati v Deans (No 2) involved a dispute between the plaintiffs, Galati, and the defendants, Deans. The matter came before the court for a determination on whether the plaintiffs should be granted leave to amend their pleadings. The primary issue before the court was whether the plaintiffs should be allowed to make further amendments to their pleadings, and if so, which specific categories of amendments should be permitted. The plaintiffs sought to amend their pleadings in two categories, while the defendants opposed any amendments.

The court considered the nature of the proposed amendments and the potential impact on the proceedings. The plaintiffs argued that the amendments were necessary to address deficiencies in their original pleadings. However, the court was mindful of the principle that amendments should not be granted if they would lead to an abuse of process. The court weighed the benefits of allowing the amendments against the potential for causing an unfair advantage or causing unnecessary delay in the proceedings.

Upon consideration, the court determined that while the plaintiffs should be granted an opportunity to serve proposed further amended pleadings in relation to one category of amendments, permitting the second category of amendments would give rise to abuse of process. The court concluded that to allow the second category of amendments would not only result in an unfair advantage but also cause undue delay and prejudice to the defendants. Consequently, the court refused leave to amend in relation to the second category of amendments.

The final orders of the court were that the plaintiffs were granted leave to amend their pleadings in relation to the first category, while the leave to amend in relation to the second category was refused. The court emphasised the importance of striking a balance between allowing necessary amendments and preventing abuse of process in the interest of fair and efficient litigation.

Orders

Orders of the court

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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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