iSAM Securities (UK) Ltd v Press

iSAM Securities (UK) Ltd sought an order for preliminary discovery against Press, seeking information to identify potential defendants and causes of action in a dispute over the distribution of financial products. The matter was heard in the Supreme Court of New South Wales. The central issue before the court was whether the plaintiff's request for preliminary discovery was justified, given the speculative nature of the potential defendants and causes of action.

The court considered whether the plaintiff's decision to commence proceedings was premature, and whether the scope of the requested discovery was too broad. The plaintiff argued that the defendants might be found within the categories of entities specified, and that the discovery was necessary to identify these potential defendants and causes of action. The court also assessed whether the plaintiff had made reasonable inquiries to narrow down the scope of the discovery request. In examining these issues, the court focused on the exercise of discretion under the Uniform Civil Procedure Rules 2005 (NSW).

The court concluded that the plaintiff had not made sufficient inquiries to justify the broad scope of the discovery request. While acknowledging the speculative nature of the potential defendants and causes of action, the court found that the plaintiff had not demonstrated a sufficient basis to warrant the requested discovery. The court ordered limited preliminary discovery, specifying the categories of documents to be disclosed. The court’s decision highlighted the need for plaintiffs to make reasonable inquiries and to tailor their discovery requests to avoid overbroad scope, ensuring that the exercise of discretion aligns with the principles of fairness and proportionality.