Mackinnon as plaintiff representative of 153 plaintiff group members v The partnership of Larter, Jones, Miraleste Pty Ltd t/as USG Partner and Johnson, t/as "STC Sports Trading Club" (No 3)

The case involved a large group of plaintiffs represented by MacKinnon against a partnership of Larter, Jones, Miraleste Pty Ltd trading as USG Partner and Johnson, trading as "STC Sports Trading Club". The plaintiffs alleged that they had been induced to purchase investments in a scheme operated by the defendants, which was in reality a pyramid scheme. The Federal Court of Australia was asked to consider the admissibility of late amendments to the pleadings by the plaintiffs.

The central issue before the court was whether the plaintiffs' application to amend their pleadings on the second day of the hearing was permissible. The plaintiffs sought to add new causes of action and to amend existing causes of action, which the defendants opposed on the basis that such amendments were not permissible at such a late stage in the proceedings.

The court found that the plaintiffs' application to amend their pleadings was not permissible on the second day of the hearing. The court held that the plaintiffs had not demonstrated any exceptional circumstances that would justify the late amendment of their pleadings. The court also found that the amendments sought by the plaintiffs would have caused significant prejudice to the defendants, as it would have allowed the plaintiffs to introduce new causes of action that had not been previously disclosed. The court held that the plaintiffs had not discharged the onus of showing that the amendment was just and equitable, and therefore the application was dismissed. The court held that the defendants were entitled to an indemnity costs order in relation to the application.