Mulhern v Bank of Queensland Ltd (No 3)

In Mulhern v Bank of Queensland Ltd (No 3), the plaintiffs, Mr and Mrs Mulhern, along with several associated entities, faced a vexatious proceedings application brought by the Bank of Queensland. The case involved a complex history of litigation between the parties, including previous bankruptcies and numerous legal proceedings. The Bank sought a vexatious proceedings order under section 37AO of the Federal Court of Australia Act 1976 (Cth), arguing that the plaintiffs had a pattern of instituting or conducting proceedings without reasonable grounds and had made extravagant claims.

The central legal issue was whether the plaintiffs had frequently instituted or conducted vexatious proceedings and whether certain plaintiffs had acted in concert with others who had frequently done so. The court had to determine if the plaintiffs were likely to continue litigating against the Bank without reasonable grounds and if they would restrict their claims to matters based on reasonable grounds. The court's analysis considered the plaintiffs' history of litigation, including multiple applications seeking identical relief, and their tendency to make unsubstantiated claims.

The court found that the plaintiffs' actions met the criteria for a vexatious proceedings order. The plaintiffs had a history of instituting proceedings without reasonable grounds, made extravagant claims, and showed no likelihood of ceasing their attempts to litigate against the Bank. The court concluded that the plaintiffs were likely to continue pursuing vexatious litigation, and therefore, it granted the Bank's application. As a result, the plaintiffs were ordered not to institute proceedings against the Bank without the leave of the Court. Additionally, the plaintiffs, excluding two specified individuals, were directed to pay the Bank's costs associated with the application.