Murdoch v Lake

The case of Murdoch v Lake involves an appeal against a decision by the primary judge to dismiss the appellant's proceeding for want of prosecution after denying his application to amend his claim and statement of claim. The appellant sought to introduce a new entity, CapX, into the pleadings and to allege that the respondent had obtained a beneficial interest in shares through CapX, and that the respondent had entered into an agreement with others, some of whom acted on behalf of CapX, regarding an initial public offering for a company of which the appellant was formerly a director and shareholder. The appellant alleged that the respondent's conduct was misleading because he did not disclose his interest in the shares nor the agreement regarding the initial public offering. The primary judge found that the introduction of CapX pleaded new causes of action, and that those causes of action did not arise out of the same or substantially the same facts as those previously pleaded.

The court was required to determine whether the introduction of CapX pleaded new causes of action, and if so, whether those causes of action arose out of the same or substantially the same facts as those previously pleaded. The court held that the introduction of CapX did indeed plead new causes of action, but that those causes of action did arise out of the same or substantially the same facts as those previously pleaded. The court found that the primary judge erred in dismissing the proceeding for want of prosecution, and that the appellant's application to amend his claim and statement of claim should have been granted. The court also held that the parties should be given an opportunity to agree on the form of order to be made for the amendment of the claim and statement of claim, and that if they were unable to agree, the applications should be remitted to the Trial Division.

The appeal is allowed. Orders 1, 2 and 3 made on 2 October 2013 are set aside. If the parties are able to agree on the form of order to be made for the amendment of the claim and statement of claim, and otherwise give effect to these reasons, those orders will be made. If the parties cannot agree on the form of order, the applications are remitted to the Trial Division. If either party seeks an order for costs, his written submissions are to be filed within seven (7) days after publication of these reasons; and any submissions in reply within a further seven (7) days.