Stone v Melrose Cranes & Rigging Pty Ltd, in the matter of Cardinal Project Services Pty Ltd (in liq)

The case of Stone v Melrose Cranes & Rigging Pty Ltd, in the matter of Cardinal Project Services Pty Ltd (in liq), involved the liquidators of Cardinal Project Services Pty Ltd seeking to rely on an additional affidavit filed by Richard Andrew Stone. Melrose Cranes & Rigging Pty Ltd opposed the application, arguing that the delay in filing the affidavit and the substantial expansion of the factual inquiry into the solvency of Cardinal Project Services Pty Ltd necessitated vacating the hearing date. The interlocutory process was first heard on 11 August 2016, with orders made for the Liquidators to notify Melrose Cranes of any further evidence by a specified date and to file and serve any further evidence by 23 August 2016. The hearing was subsequently stood over to 29 August 2016.

The legal issues before the court included whether the Liquidators should be permitted to rely on the additional affidavit and whether the hearing should be vacated due to the delay in filing the evidence. The court had to consider the principles of case management, the requirements of justice, and the potential impact on the trial date. Melrose Cranes argued that the delay in filing the affidavit, which was over 14 months, and the late notification of the need for further evidence, meant that there was insufficient time to properly prepare for the trial. Additionally, they contended that the Liquidators had been aware of the potential gap in their evidence for some time and had not acted diligently.

The court dismissed the interlocutory application, noting that while the Liquidators had been successful in obtaining leave to rely on the additional affidavit, the delay in filing it was significant. The court found that the Liquidators had sufficiently explained the reasons for the delay but held that the Liquidators should bear the costs of the interlocutory process. The court made orders that the Liquidators could rely on the additional affidavit, the hearing date be vacated, the proceeding be listed for directions, and the Liquidators pay Melrose Cranes' costs thrown away and the costs of the interlocutory process.

In conclusion, the court dismissed the interlocutory process filed on 8 August 2016 but granted the Liquidators leave to rely on the affidavit of Richard Andrew Stone sworn on 23 August 2016. The hearing was vacated, and the matter was listed for directions on 8 September 2016 at 9.30 am. The Liquidators were ordered to pay Melrose Cranes' costs thrown away by reason of the order and the costs of the interlocutory process filed on 8 August 2016.