Sunwater Limited v Drake Coal Pty Ltd

The proceeding concerns a contractual dispute between Sunwater Limited and Drake Coal Pty Ltd, along with other entities. The case is before the Queensland Court of Appeal. The plaintiff argues that certain paragraphs in the defendants' proposed amended defence and counterclaim are not legally recognised grounds of defence to the plaintiff's claims. Specifically, the plaintiff seeks a strike-out of paragraphs 48(k)(vi)-(xi), 61(k)(vi)-(xi) and 68(o)(vi)-(xi). These paragraphs are part of the defence to the plaintiff's claim for reasonable remuneration for work done at the defendants' request. The plaintiff contends that the allegations in these paragraphs do not constitute a legally recognised ground of defence.

The central issue before the court was whether the offending paragraphs are properly the subject of a strike-out application. The court needed to determine if these paragraphs could give rise to any legally recognised ground of defence to the plaintiff's claims. The court examined the legal basis for the defendants' allegations, including the timing and relevance of the facts pleaded. The court also considered whether the defendants' allegations were sufficient to warrant a strike-out of the paragraphs in question.

The court found that the offending paragraphs were not properly the subject of a strike-out application. It determined that the pleaded facts, though occurring long after the completion of the work, could still be relevant to the defendants' defence. The court held that the defendants' allegations, if proven, could constitute a legally recognised ground of defence. Consequently, the court dismissed the plaintiff's application for a strike-out of the specified paragraphs. The court will hear the parties as to the costs of the application.