HART-ROACH v Cady [No 2]

Case [2011] WASC 266


JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

IN CHAMBERS

CITATION:   HART-ROACH -v- CADY [No 2] [2011] WASC 266

CORAM:   COMMISSIONER SLEIGHT

HEARD:   12 & 21 SEPTEMBER 2011

DELIVERED          :   29 SEPTEMBER 2011

FILE NO/S:   CIV 1578 of 2011

BETWEEN:   RUTH MARY HART-ROACH

Applicant

AND

NEIL CADY
First Respondent

JEWELL HOUSE (YMCA)
Second Respondent

FILE NO/S              :CIV 1666 of 2011

BETWEEN              :RUTH MARY HART-ROACH

Plaintiff

AND

RONALD MELL CEO, REPRESENTING YMCA PERTH
First Defendant

NEIL CADY
Second Defendant

Catchwords:

Practice and procedure - Application to amend writ of summons - Application to join additional defendants to the writ of summons

Injunction - Interlocutory injunction - Claim under the Fair Trading Act 1987 - Whether the plaintiff has established a serious issue to be tried - Whether the balance of convenience favours the plaintiff - Turns on its own facts

Legislation:

Fair Trading Act 1987 (WA), s 74, s 76
Residential Tenancies Act 1987 (WA), s 3, s 5(1), s 5(2)(d) , s 12, s 12A, s 60(1)(a)

Result:

Application for leave to amend writ granted in part
Interim injunction set aside

Category:    B

Representation:

CIV 1578 of 2011

Counsel:

Applicant:     In person

First Respondent           :     Mr N D Billington

Second Respondent       :     Mr N D Billington

Solicitors:

Applicant:     In person

First Respondent           :     Cahill Billington

Second Respondent       :     Cahill Billington

CIV 1666 of 2011

Counsel:

Plaintiff:     In person

First Defendant             :     Mr N D Billington

Second Defendant         :     Mr N D Billington

Solicitors:

Plaintiff:     In person

First Defendant             :     Cahill Billington

Second Defendant         :     Cahill Billington

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

American Cyanamid Co v Ethicon Ltd [1975] AC 396

Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001] HCA 63; (2001) 208 CLR 199

Australian Broadcasting Corporation v O'Neill [2006] HCA 46; (2006) 227 CLR 57

Bullock v The Federated Furnishing Trades Society of Australasia (No 1) (1985) 5 FCR 464

Castlemaine Tooheys Ltd v The State of South Australia (1986) 161 CLR 148

Commissioner for Fair Trading v Voulon [2005] WASC 229

Fejo v Northern Territory of Australia [1998] HCA 58; (1998) 195 CLR 96

Glenwood Management Group Pty Ltd v Mayo [1991] 2 VR 49

Hart‑Roach v Cady [2011] WASC 90

Patrick Stevedores Operations (No 2) Pty Ltd v Maritime Union of Australia (No 3) [1998] HCA 30; (1998) 195 CLR 1

Street v Mountford [1985] AC 809

Todd v Novotny [2001] WASC 171

Twinside Pty Ltd v Venetian Nominees Pty Ltd [2008] WASC 110

  1. COMMISSIONER SLEIGHT:  Ms Hart‑Roach resides at Jewell House, an accommodation facility conducted by The Young Men's Christian Association of Perth Inc (the YMCA Perth).  A dispute has arisen between Ms Hart‑Roach and the YMCA Perth which initially manifested itself in this court with Ms Hart‑Roach applying for an interim injunction in CIV 1578 of 2011 to prevent the YMCA Perth from evicting Ms Hart‑Roach.  On 5 April 2011, an interim injunction was granted restraining the YMCA Perth from evicting Ms Hart‑Roach pursuant to an…

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AGLC
HART-ROACH v Cady [No 2] [2011] WASC 266
Case
[2011] WASC 266
Decision Date

CaseChat Overview and Summary

In the case of Hart-Roach v Cady [No 2], the plaintiff sought an interlocutory injunction to prevent the YMCA Perth from evicting her from a property she occupied under a periodic licence. The defendant, YMCA Perth, applied to set aside the injunction. The primary issue before the court was whether the plaintiff had established proper grounds to maintain the interim injunction. The court was required to determine whether the plaintiff had shown a serious issue to be tried and whether the balance of convenience favoured the plaintiff.

The court found that the plaintiff had not established proper grounds to maintain the interim injunction. Firstly, the plaintiff did not plead in the proceedings that the eviction notice was illegal or seek any remedy in relation to the purported eviction. Secondly, the claim by the plaintiff was for damages only and the interim injunction was not necessary to preserve any cause of action or relief sought. The court noted that the nature of a periodic licence suggests that the YMCA Perth is entitled to terminate the licence at the expiration of each period of the licence or after reasonable notice, which means that the plaintiff had little security of tenure. Lastly, the injunction only restrained the YMCA Perth from evicting the plaintiff pursuant to the eviction notice of 4 April 2011, and there was nothing to prevent the YMCA Perth from taking steps to evict the plaintiff by other lawful means.

The court concluded that the interim injunction granted on 5 April 2011 should be set aside. The reasons for this were that the plaintiff had not established a sufficient basis for allowing the injunction to continue to maintain the status quo or that the balance of convenience favoured the plaintiff. The court found that damages would be an adequate remedy for the plaintiff and that the YMCA Perth would be able to pay them. Accordingly, the court set aside the interim injunction.

The court ordered that the interim injunction granted on 5 April 2011 be set aside. The court also ordered that the YMCA Perth pay the plaintiff's costs of the application.

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

The power to grant an interim injunction under s 76(5) of FTA 1987 is not an unlimited right. As a general rule, the purpose of an interlocutory injunction is to keep matters in the status quo until the rights of the parties can be determined at the hearing. Preservation of the status quo means preservation of the remedy sought by way of final relief in the action. In other words, the plaintiff seeking an interlocutory injunction must be able to show sufficient relationship to the right contained in the final relief sought. Accordingly, it is necessary to identify the legal or equitable rights which are to be determined in respect of which the final relief is sought: Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001] HCA 63; (2001) 208 CLR 199, 217 (Gleeson CJ), 240 ‑ 241 (Gummow & Hayne JJ), 312 (Callinan J); Castlemaine Tooheys Ltd v The State of South Australia (1986) 161 CLR 148, 153 (Mason ACJ). If damages will be an adequate remedy and the defendant will be able to pay them, an interlocutory injunction should not normally be granted: American Cyanamid Co v Ethicon Ltd [1975] AC 396, 408. I conclude that, in all the circumstances, the interim injunction granted on the 5 April 2011 should be set aside. The reasons for this are as follows.(1)Ms Hart‑Roach does not plead in CIV 1666 of 2011 that the eviction notice was illegal or seek any remedy by way of injunctive relief or otherwise in relation to the purported eviction.(2)The claim by Ms Hart‑Roach is for damages only and the interim injunction is not, in my opinion, necessary in order to preserve any cause of action or relief sought. Although one of the items of damage sought by Ms Hart‑Roach is an ex gratia payment of $50,000 to make it possible for Ms Hart‑Roach to move out of Jewell House and to rent alternative accommodation in the commercial market as a tenant, it is difficult to see how such a claim could succeed. Ignoring the description 'ex gratia payment', it is difficult to see how a claim of reliance upon the logo of the YMCA Perth could lead to a loss or damages in a form that would require the YMCA Perth to pay the costs of Ms Hart‑Roach moving to alternative premises, given that at any time she occupied the premises as a periodic licensee. The nature of a periodic licence suggests (without finally deciding the point) that the YMCA Perth is entitled to terminate that licence at the expiration of each period of the licence or after reasonable notice. Accordingly, there is little security of tenure and at any time Ms Hart‑Roach could be subject to incurring relocation costs.(3)The injunction only restrains the YMCA Perth from evicting Ms Hart‑Roach pursuant to the eviction notice of 4 April 2011 and there is nothing to prevent the YMCA Perth from taking steps to evict Ms Hart‑Roach by other lawful means. Taking these factors into account, I conclude that Ms Hart‑Roach has not established proper grounds to maintain the interim injunction, either because there is insufficient basis for allowing the injunction to continue to maintain the status quo or because, on the balance of convenience, I am not satisfied that the injunction should continue.