Origin Energy LPG Ltd v Bestcare Foods Ltd

Origin Energy LPG Ltd (Origin) sought a stay of a judgment entered in favour of Bestcare Foods Ltd (Bestcare) for approximately $91 million. The judgment followed a lengthy and complex trial in the Supreme Court of New South Wales, which had initially determined liability and subsequently adopted a referee's report on the quantum of damages. Origin had filed an appeal against the liability finding, which was being expedited. Bestcare was in administration.

The primary legal issue before the Court of Appeal was whether to grant a stay of the Supreme Court's judgment pending the determination of Origin's appeal on liability. A secondary issue concerned Bestcare's application for expedition of the liability appeal.

Allsop P considered that there were real and substantial issues to be tried on the appeal regarding liability. Given the significant sum involved and the fact that Bestcare was in administration, a stay of the judgment was considered appropriate to preserve the status quo and ensure that any potential success on appeal by Origin would not be rendered nugamous. The Court dismissed Bestcare's application for expedition but granted leave to seek to revive it later.

The Court ordered that the notice of motion for expedition be dismissed without costs, with leave to Bestcare to seek to revive the application after the liability appeal. Crucially, the Court ordered a stay of the Supreme Court's judgment in favour of Bestcare for $91,219,465 until further order, with the costs of the summons for the stay to be costs in the appeal.