Yolarno Pty Ltd v Shandong Delisi Food Co Ltd

Yolarno Pty Ltd appealed to the Court of Appeal of the Supreme Court of New South Wales against a judgment and costs order made by Parker J on 7 February 2022 in favour of Shandong Delisi Food Co Ltd. Yolarno sought to extend a stay of the judgment and costs order that was already in force pending the determination of its appeal.

The primary legal issue before Macfarlan JA was whether to grant Yolarno's application to extend the existing stay of the judgment and costs order until the determination of its appeal. This involved considering the undertakings Yolarno was prepared to offer to the Court to secure the respondent's position.

Macfarlan JA reasoned that a stay of execution pending appeal is a significant intervention and requires careful consideration of the competing interests of the parties. His Honour noted that the court has a discretion to grant a stay, and that such discretion is often exercised where the appellant provides undertakings to protect the respondent's position. In this instance, Yolarno offered two specific undertakings: first, that it would not dispose of or deal with any company property otherwise than in the ordinary course of its business, and second, that it would prosecute its appeal expeditiously.

Upon Yolarno providing these undertakings to the Court, Macfarlan JA ordered that the stay of the judgment and costs order be extended until the determination of Yolarno's appeal. The costs of Yolarno's motion for the stay were made costs in the appeal.