Kelly v Mina

Case [2014] NSWCA 9


This decision has been amended. Please see the end of the decision for a list of the amendments.

Court of Appeal

New South Wales

Case Title: Kelly v Mina
Medium Neutral Citation: [2014] NSWCA 9
Hearing Date(s): 26 November 2013
Decision Date: 10 February 2014
Before: Barrett JA at [1]; Ward JA at [100]; Leeming JA at [101]
Decision:

1. Appeal dismissed.
2. That the appellant pay the respondent's costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: APPEAL AND NEW TRIAL - refusal of defendant's amendment application at beginning of trial - judgment for plaintiff - appeal on ground that amendment wrongly disallowed - PROCEDURE - application for leave to amend defence - application made at a very late stage - grounds relied on known to defendant for a long time - no satisfactory explanation of delay - whether leave to amend rightly refused CONTRACTS - contract between individuals concerning business conducted through entities controlled by them - whether promises by the individuals as distinct from their entities affected by want of consideration or lack of privity - where part of document expressed to be "non-binding" - whether that part had contractual force
Legislation Cited: Civil Procedure Act 2005
District Court Act 1973
Cases Cited: Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc [1981] HCA 39; (1981) 148 CLR 170
Air Great Lakes Pty Ltd and KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309
Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191
Aon Risk Services Pty Ltd v Australian National University (2009) HCA 29: (2009) 239 CLR 175
Apotex Pty Ltd v Sanfoni [2013] FCA 1425
Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd [2008] NSWCA 243
Bi v Mourad [2010] NSWCA 17
Celestino v Celestino [1990] FCA 299
Chandler v Water Corporation [2001] WASC 166
Coopers Brewery Ltd v Panfida Foods Ltd (1992) 26 NSWLR 738
Dennis v Australian Broadcasting Corporation [2008] NSWCA 37
Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; (2002) 209 CLR 95
Gerlach v Clifton Bricks Pty Ltd [2002] HCA 22; (2002) 209 CLR 478
Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; (2009) 76 NSWLR 603
Halpin v Lumley General Insurance Ltd [2009] NSWCA 372
Hans Pet Constructions Pty Ltd v Cassar [2009] NSWCA 230
House v The King [1936] HCA 40; (1936) 55 CLR 499
Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; (2001) 210 CLR 181
Namberry Craft Pty Ltd v Watson [2011] VSC 136
Richards v Cornford (No 3) [2010] NSWCA 134
State of New South Wales…

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AGLC
Kelly v Mina [2014] NSWCA 9
Case
[2014] NSWCA 9
Decision Date

CaseChat Overview and Summary

The appeal in *Kelly v Mina* concerned a dispute between individuals regarding a business conducted through entities they controlled. The primary issue on appeal was whether the primary judge had erred in refusing the defendant's application to amend their defence at the commencement of the trial. The Court of Appeal, comprising Barrett, Ward and Leeming JJA, was required to determine whether the refusal of this late amendment application was justified, and also to consider the contractual nature of promises made by the individuals, as distinct from their controlled entities, particularly in light of a clause stating part of the document was "non-binding".

The Court of Appeal affirmed the primary judge's decision to refuse the amendment. Their Honours reasoned that the grounds for the proposed amendment were known to the defendant for a considerable period, and no satisfactory explanation was provided for the significant delay in seeking leave to amend the defence. This late stage of the proceedings, coupled with the lack of a compelling reason for the delay, led the Court to conclude that the refusal was a proper exercise of the primary judge's discretion. Furthermore, the Court considered the contractual issues, finding that promises made by the individuals, rather than their entities, were not affected by want of consideration or lack of privity, and that the "non-binding" clause did not preclude the relevant part of the document from having contractual force.

The appeal was dismissed, and the appellant was ordered to pay the respondent's costs.

Orders

Orders of the court

1. Appeal dismissed.

2. That the appellant pay the respondent's costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

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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