Lion-Dairy and Drinks Pty Limited v Sinclair Knight Merz Pty Limited

In the matter of Lion-Dairy and Drinks Pty Limited v Sinclair Knight Merz Pty Limited, the Federal Court was asked to order two non-parties to provide documents that were relevant to the proceedings. The primary dispute between Lion-Dairy and Drinks and Sinclair Knight Merz centred on the adequacy of a wastewater treatment facility designed by Sinclair Knight Merz for Lion-Dairy and Drinks' Smithfield plant. Lion-Dairy and Drinks sought to compel non-parties, Ovivo Australia Pty Ltd and Labpoint Pty Ltd, to disclose specific documents pertaining to the facility’s design, commissioning, and performance.

The court had to decide whether the documents sought were relevant and necessary for the just determination of the proceedings. This involved assessing whether the documents would assist in resolving the issues between the parties, particularly those related to the facility’s capability to meet the required biochemical and chemical oxygen demand levels. The court also had to consider the proportionality of the request and whether the benefits of disclosure outweighed any potential prejudice to the non-parties.

The court found that the documents requested were indeed relevant and necessary for the just determination of the proceedings. The court emphasised that the documents could provide crucial insights into the design and operational issues of the facility, potentially illuminating why it failed to meet the stipulated performance standards. Given the specific nature of the documents and their direct relevance to the case, the court ruled in favour of the application for non-party discovery. The orders required the non-parties to produce the specified documents within set timeframes and also addressed the costs associated with the search, review, and disclosure of these documents.