GDP Group Pty Ltd v Saye

In the matter of GDP Group Pty Ltd and GDP Qld Pty Ltd v Julian Saye and Allied Commercial Pty Ltd, the applicants sought a review of a decision made by the registrar of the Federal Court. The registrar had granted a preliminary discovery order under rule 7.23 of the Federal Court Rules 2011 (Cth), allowing the applicants to inspect certain documents held by the respondents. The applicants aimed to inspect the documents to determine whether they had a viable claim against the respondents. The legal issues before the court were whether the applicants had satisfied the criteria set out in rule 7.23 of the Federal Court Rules 2011 (Cth) for granting a preliminary discovery order, and whether the applicants had made reasonable inquiries to obtain sufficient information to decide whether to start proceedings.

The court found that the applicants had not satisfied the criteria for a preliminary discovery order as they did not have a reasonable belief that they may have a right to obtain relief, nor did they demonstrate that the inspection of documents would assist in making a decision whether to commence proceedings. The court held that the applicants had not undertaken obvious inquiries, including examining their own records, to obtain sufficient information to decide whether to start proceedings. Additionally, the evidence did not demonstrate that the inspection of documents would assist in making a decision whether to commence proceedings. As a result, the court set aside the order of the registrar and dismissed the application for preliminary discovery.

The court ordered that the orders dated 24 February 2022 be set aside, and that the originating application filed on 4 November 2021 be dismissed. The parties were directed to make brief submissions as to costs, and the issue of costs would be determined on the papers. The court also noted that entry of orders was dealt with in Rule 39.32 of the Federal Court Rules 2011.