Kokos International Pty Ltd v Libra Motors Pty Ltd [No 3]

Kokos International Pty Ltd, the applicant, sought an order from the Federal Court of Australia to allow the defendants, Libra Motors Pty Ltd, to rely on an additional defence in their proceeding. The applicant had brought an action against the defendants for breach of a contract for the supply of certain goods. In response, the defendants sought to rely on a new defence that had not been pleaded in their initial response. The applicant objected to this additional defence on the basis that it was outside the scope of the pleadings and would prejudice their ability to adequately respond to the new defence.

The court was required to determine whether the defendants could rely on the additional defence and, if so, whether it should be allowed under the slip rule. The slip rule allows for amendments to pleadings to accommodate new defences that were not reasonably foreseeable at the time of the initial pleadings, provided that the amendment does not cause substantial injustice to the other party.

The court found that the defendants' new defence was reasonably foreseeable and did not cause substantial injustice to the applicant. The court noted that the new defence was based on the same set of facts as the original pleadings and did not introduce any new evidence or witnesses. The court also found that the applicant had sufficient time to prepare a response to the new defence and that there was no evidence of prejudice. The court therefore allowed the defendants' application to rely on the new defence under the slip rule. The court's decision was based on the balance of convenience and the interests of justice. The court found that allowing the defendants to rely on the new defence was in the interests of justice and would not cause substantial injustice to the applicant. The court also noted that denying the defendants' application would result in a waste of court resources and delay in the proceedings.