Varley v Varley

In the Family Court of Australia, Varley v Varley involved a dispute between the parties regarding financial matters arising from their de facto relationship. The primary issue before the court was whether an interlocutory injunction could be granted pending the determination of accounting questions by a referee, and specifically, whether the necessity to prove irreparable injury could be waived in such circumstances. The respondent argued that the applicant must demonstrate an irreparable injury and provide an undertaking as to damages, a requirement typically associated with interlocutory injunctions.

The court examined the statutory framework provided by the Property (Relationships) Act 1984 and considered whether a general principle exists that an undertaking as to damages is not required if the applicant is impecunious or in straitened circumstances. The court further deliberated on the broader role of undertakings as to damages in the context of interlocutory injunctions. It was acknowledged that, traditionally, proof of irreparable injury is essential for such relief, but the court also recognised the potential hardship faced by financially disadvantaged applicants. The court concluded that while the general rule requires an undertaking as to damages, there may be exceptional circumstances where this requirement could be relaxed, particularly when the applicant is unable to provide such an undertaking due to financial constraints.

The court found that in this case, the applicant's inability to provide an undertaking as to damages did not necessarily preclude the grant of an interlocutory injunction, especially given the potential for significant financial loss if the injunction was not granted. The court also noted the importance of the role played by legal practitioners in advising clients on the implications of such applications. Ultimately, the court determined that the applicant had demonstrated sufficient grounds to warrant the grant of an interlocutory injunction pending the referee's report.