Interpacific Resorts (Australia) P/L v Austar Entertainment P/L

In the Supreme Court of Queensland, Interpacific Resorts (Australia) Pty Ltd, trading as Couran Cove Island Resort, sought leave to add Austar Entertainment Pty Ltd as a contributor to a claim for damages made by the Masons. The Masons had previously notified Interpacific of a claim in respect of injuries sustained by Mr Mason at the resort in 2000. Due to delays in the proceedings, the Personal Injuries Proceedings Act 2002 came into effect, which required certain statutory notices to be given. Interpacific discovered that Mr Mason had attended the resort for a conference organised by Austar, and that Austar had an application for credit signed with Interpacific that contained an indemnity clause. Interpacific sought to be indemnified by Austar for any damages awarded to the Masons. The delay in proceedings had caused Interpacific to be out of time to add Austar as a contributor under section 16(1) of the Act, thus requiring leave of the court to do so under section 16(2).
The court considered whether the delay in proceedings was sufficient to deny Interpacific leave to add Austar as a contributor. The court found that the delay was not fatal, and that the explanation for the delay was inadequate. However, the court also found that the claim against Austar was not demonstrably weak, and that there was utility in including Austar in the proceedings. The court also found that any potential prejudice to Austar could be avoided by appropriate directions. The court proposed to grant leave to Interpacific to add Austar as a contributor and to make directions to ensure the compulsory conference takes place at an early date.
The court granted leave to Interpacific to add Austar as a contributor and made directions to ensure the compulsory conference takes place in early February of the following year. The court also ordered that the costs as between Interpacific and the Masons be costs in action number 6937 of 2003 and otherwise there should be no order as to costs.