Knauf Plasterboard Pty Limited v S Banovic Holdings Pty Limited

In this matter, Knauf Plasterboard Pty Limited sought relief from S Banovic Holdings Pty Limited in the Supreme Court of New South Wales. The dispute arose out of a building contract, with Knauf alleging that S Banovic had breached the terms of their agreement. Knauf sought damages, specific performance, and an injunction. S Banovic, in turn, raised various defences, including a counterclaim for breach of contract and other related claims.

The legal issues before the court centred on the procedural matter of whether S Banovic's repeated failure to respond to Knauf's requests for particulars of their defence justified the striking out of their defence. Knauf argued that S Banovic had failed to comply with the court's orders and the rules of court, resulting in undue delay and prejudice to Knauf. S Banovic contended that their failure to respond was due to their solicitor ceasing to act, and they were not responsible for the delay. The court needed to determine whether S Banovic's failure to respond was a result of their own actions or due to circumstances beyond their control.

The court found that S Banovic had indeed failed to respond to Knauf's requests for particulars of their defence, and their repeated failures amounted to a lack of due despatch. The court further found that S Banovic was responsible for the delay as their solicitor had ceased to act due to a dispute between the solicitor and S Banovic. The court held that S Banovic's failure to respond to the requests for particulars was not due to circumstances beyond their control, and therefore, the defence was struck out for want of due despatch. The court did not find it necessary to make any orders regarding costs or further relief at this stage.

The court struck out S Banovic's defence for want of due despatch and ordered that the matter proceed to trial with only Knauf's claims before the court. The court did not make any orders regarding costs or further relief at this stage.