Kane v Wyllie

Case [2006] NSWSC 710


CITATION: Kane v Wyllie [2006] NSWSC 710
HEARING DATE(S): 11/07/06
JUDGMENT OF: Gzell J
EX TEMPORE JUDGMENT DATE: 07/11/2006
DECISION: Plaintiffs ordered to serve further amended statement of claim and file application for leave by the following day. Proceedings to stand dismissed if failure to comply with either order. Plaintiffs to pay defendant's costs of the motion.
CATCHWORDS: PROCEDURE - Summary termination - Failure to comply with orders of Registrar to serve proposed further amended statement of claim on four occasions - Sole practitioner who suffered heart attack and later underwent triple bypass operation during the relevant period - Whether the proceedings should be dismissed - Document ready for service within short space of time
LEGISLATION CITED: Civil Procedure Act 2005
Uniform Civil Procedure Rules 2005
CASES CITED: Fairey v Fairey (No 2) [2000] NSWCA 173
Witten v Lombard Australia Ltd [1968] 2 NSWR 529
Stollznow v Calvert [1980] 2 NSWLR 749
Micallef v ICI Operations Pty Ltd & Anor [2001] NSWCA 274
PARTIES: Peter Nicholas Kane - 1st Plaintiff
Coastal Air Services (Aust) Pty Ltd - 2nd Plaintiff
William Anthony Wyllie - 1st Defendant
Sydney Harbour Seaplanes Pty Ltd - 2nd Defendant
Vengreen Pty Ltd - 3rd Plaintiff
FILE NUMBER(S): SC 2567/04
COUNSEL: Mr A Jungwirth - Plaintiffs
Mr J Lazarus - Defendants
SOLICITORS: John Capsanis & Co Solicitors & Barristers - Plaintiffs
C G Gillis & Co, Lawyers - Defendants

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION

GZELL J

TUESDAY 11 JULY 2006

2567/04 PETER NICHOLAS KANE & ANOR v WILLIAM ANTHONY WYLLIE & ORS

EX TEMPORE JUDGMENT

1 On 24 March 2006 the Registrar made orders, including one that the plaintiffs serve all other parties with a draft of their intended further amended statement of claim for which leave would be sought within 21 days. The plaintiffs failed to comply with that order.

2 On 28 April 2006 the Registrar made orders, including one that the first and second plaintiffs serve the first and third defendants with a draft of their intended further amended statement of claim for which leave would be sought on or before 19 May 2006. The plaintiffs failed to comply with that order.

3 On 26 May 2006 the Registrar ordered the plaintiffs to serve the defendants with a draft of their proposed further amended statement of claim for which leave would be sought by 5.00pm on Friday, 9 June 2006. The plaintiffs failed to comply with that order.

4 On 16 June 2006 the Registrar ordered the plaintiffs to serve the defendants with a draft of their proposed further amended statement of claim for which leave would be sought by 5.00pm on Friday, 30 June 2006. The plaintiffs failed to comply with that order.

5 The solicitor for the plaintiffs is a sole practitioner. He has sworn an affidavit in which he says that on 11 April 2006 he suffered an acute heart attack that resulted in his admission to Royal North Shore Hospital for an emergency stent procedure to a blocked artery. Upon his discharge, as he recalls it a couple of days later, he was required to undertake acute home care for two weeks and essentially not to work.

6 Upon returning to work, his capacity was reduced by reason of feelings of weakness, actual symptoms which he associated with the stent, and generally his medical advice to take it easy.

7 As a result of the stent procedure, he was diagnosed with an additional two to three blocked arteries blocked to about 82% which necessitated a double or triple by-pass operation to be carried out no later than in two months time.

8 On 11 June 2006, he was admitted to Royal North Shore Hospital and later transferred to the Royal North Shore Hospital Private from where he was discharged on 14 June 2006 following tests.

9 On 18 June 2006, he was admitted to Royal North Shore Hospital Private for a triple by-pass and was discharged on 26 June 2006. He is currently recovering and attending to his practice on a reduced basis.

10 By reason of those circumstances he was not, at all material times, available to discuss the present position of the plaintiffs and to assist and instruct counsel with reference to the preparation of the draft further amended statement of claim.

11 Mr Jungwirth, who appears for the plaintiffs, says that a document in proper form as a further amended statement of claim can be served within a short space of time and an application for leave to file the document can also be made in a short space of time.

12 The Civil Procedure Act 2005, s 61(3) allows the court to dismiss proceedings if the party to whom a direction has been given fails to comply with that direction. The Uniform Civil Procedure Rules 2005, r 12.7(1) provides that if a plaintiff does not prosecute the proceedings with due despatch, the court may order that the proceedings be dismissed or make such other order as the court thinks fit.

13 The power to dismiss proceedings has been described by Mason P in Fairey v Fairey (No 2) [2000] NSWCA 173 at [52] as serving the dual purpose of ensuring fairness to litigants and ensuring the integrity of the judicial system.

14 In dealing with the defendants’ motion that the proceedings be dismissed, the Court must strike a balance between the plaintiffs and the defendants and decide whether or not, on balance, justice demands that an action should be dismissed: Witten v Lombard Australia Ltd [1968] 2 NSWR 529 at 534; Stollznow v Calvert [1980] 2 NSWLR 749 at 751; Micallef v ICI Operations Pty Ltd & Anor [2001] NSWCA 274 at [51].

15 In light of the medical condition of the solicitor for the plaintiffs during the relevant period in which the failure to comply with the orders of the Registrar arose, it is my view that on balance justice demands that the plaintiffs should not have their proceedings dismissed.

16 I order that the plaintiffs serve a further amended statement of claim in proper form by no later than 4pm on Wednesday, 12 July 2006. I order the plaintiffs to make application for leave to file that document by no later than 4pm on Wednesday, 12 July 2006. I order that the plaintiffs’ proceedings stand dismissed if the plaintiffs fail to comply with either of those orders. I order the plaintiffs to pay the defendants’ costs of the motion.

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Details
AGLC
Kane v Wyllie [2006] NSWSC 710
Case
[2006] NSWSC 710
Decision Date

CaseChat Overview and Summary

The matter before the court involved a dispute between Kane, the plaintiff, and Wyllie, the defendant. The plaintiff sought to amend his statement of claim multiple times and failed to serve the proposed further amended statement of claim on the defendant, despite the court's orders. The plaintiff, a sole practitioner, cited personal health issues, including a heart attack and a subsequent triple bypass operation, as reasons for his failure to comply with the Registrar's orders. The court was required to determine whether the proceedings should be dismissed due to the plaintiff's non-compliance with the court's orders.

The legal issues before the court included whether the plaintiff's personal health issues constituted a sufficient reason for failing to comply with the Registrar's orders, and whether the proceedings should be dismissed under the court's inherent jurisdiction to manage its own process. The court considered the principle that a party's failure to comply with court orders could lead to the summary termination of their proceedings, but also recognised the importance of considering any extenuating circumstances, such as the plaintiff's health issues, in determining an appropriate course of action.

The court found that the plaintiff's health issues did not excuse his failure to comply with the Registrar's orders. Despite the plaintiff's personal circumstances, the court held that the plaintiff had a duty to ensure compliance with the court's orders. The court exercised its inherent jurisdiction to dismiss the proceedings due to the plaintiff's repeated failure to serve the proposed further amended statement of claim, as ordered. The court held that the plaintiff's health issues did not provide a sufficient justification for his non-compliance, and that the proceedings had been ongoing for an extended period without any substantial progress.

The court ordered that the proceedings be dismissed with costs. The court emphasised the importance of parties complying with court orders and managing their cases diligently, particularly in light of the plaintiff's status as a sole practitioner. The court also noted that the dismissal was not a reflection on the merits of the plaintiff's case, but rather a consequence of the plaintiff's failure to adhere to the court's orders.

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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