Papas v Grave

The appeal concerned an interlocutory injunction granted ex parte by the Supreme Court of New South Wales. The applicants sought to dissolve this injunction ab initio, arguing that its subsequent continuation by consent was irrelevant to their motion. The respondents contended that the applicants had acted in contempt of court by failing to comply with the injunction.

The central legal issues before the Court of Appeal were whether the original ex parte injunction was validly granted, given the alleged breach of disclosure obligations by the moving party and the absence of a claim for final relief. Further, the court had to determine whether a superior court's orders could be dissolved retrospectively, and whether failure to comply with such orders constituted contempt irrespective of their ultimate correctness. The court also considered whether the proceedings related to contempt under s 101(5) of the Supreme Court Act 1970, which would obviate the need for leave to appeal.

The Court of Appeal reasoned that orders of a superior court of record are valid until set aside. It held that such orders could not be dissolved ab initio, and that failure to comply with an order, even if later found to be erroneous, constituted contempt. The court found that the applicants' consent to the continuation of the injunction did not render the original grant of the injunction irrelevant to the dissolution motion. Consequently, the appeal was dismissed.