Tenth Vandy Pty Ltd v Natwest Markets Australia Pty Ltd

Tenth Vandy Pty Ltd initiated proceedings against Natwest Markets Australia Pty Ltd in a dispute relating to financial services and alleged breaches of contract. The case was heard in the Supreme Court of New South Wales. The primary concern was the court's exercise of its discretion to strike out the proceedings due to want of prosecution, and the subsequent reinstatement of the matter.

The legal issues before the court included whether the delay in prosecuting the claim prejudiced the defendant and whether the plaintiff's impecuniosity could justify the delay. The court had to consider the principles of case management and the balance between a plaintiff's right to access the courts and a defendant's right to a timely resolution of disputes. The court acknowledged that while delay alone does not necessarily constitute prejudice, it may be a factor in determining whether proceedings should be struck out. However, in this case, the defendant presented no evidence of actual prejudice resulting from the delay, and the court found that prejudice could not be inferred merely from the passage of time without more.

The Supreme Court found that the plaintiff's financial difficulties did not absolve it from the consequences of the delay, but the lack of prejudice to the defendant and the absence of any other factors warranting a strike out led to the conclusion that the proceedings should be reinstated. The court emphasised that while delay is generally disfavored, it is not an automatic ground for striking out proceedings. The plaintiff's right to pursue its claim was preserved, subject to compliance with any further orders the court might make regarding the conduct of the proceedings. The court ordered the reinstatement of the proceedings with directions for the parties to address the progress of the case.