Zabusky v Virgtel Limited

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SUPREME COURT OF QUEENSLAND

CITATION:

Zabusky & Ors v Virgtel Limited [2022] QSC 46

PARTIES:

HARVEY ZABUSKY

(first plaintiff)
and
EREZ ZABUSKY
(second plaintiff)
and
D A WERBER LIMITED (RC: 261285)
(third plaintiff)

v

VIRGTEL LIMITED (IBC No 311178)

(defendant)

FILE NO/S:

BS 8849 of 2020

DIVISION:

Trial Division

PROCEEDING:

Application

DELIVERED ON:

7 April 2022

DELIVERED AT:

Brisbane

HEARING DATE:

14 March 2022

JUDGE:

Bowskill CJ

ORDERS:

The application is dismissed.

CATCHWORDS:

PROCEDURE – CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS – JUDGMENTS AND ORDERS – AMENDING, VARYING AND SETTING ASIDE JUDGMENTS AND ORDERS – ACTIONS TO REVIEW OR SET ASIDE JUDGMENT OR ORDER – GENERALLY – where the plaintiffs sought, by the proceeding, to enforce a Nigerian judgment against the defendant – where the proceeding was permanently stayed, in circumstances where the court found the defendant has no assets in Queensland and accordingly Queensland is an inappropriate forum – where, following the making of the stay order, the plaintiffs were ordered to pay the defendant’s costs of the proceeding, and the application for a stay – where the plaintiffs apply for an order lifting the stay on the basis that the defendant now has an asset in the jurisdiction, namely the benefit of the costs order – where the defendant’s legal costs were paid by a third party – whether the costs order is an asset of the defendant such as to justify lifting the stay

Australian Workers’ Union v Bowen (1946) 72 CLR 575

COUNSEL:

D de Jersey QC, for the plaintiffs

S Monks, for the defendant

SOLICITORS:

Hayes & Co Lawyers, for the plaintiffs

James Conomos Lawyers, for the defendant

  1. Against the background of a “decades-long, multi-jurisdictional” dispute, by this proceeding the plaintiffs sought to enforce against the defendant a judgment of the Federal High Court of Nigeria.[1]  On 12 February 2021, on the basis of a finding that the defendant does not have any assets in Queensland and, accordingly, that Queensland is an inappropriate forum for the resolution of the dispute, Crow J ordered that the proceeding be permanently stayed.[2]  Subsequently, on 22 February 2021, Crow J made an order that the plaintiffs pay the defendant’s costs of the application (for a permanent stay) and of the proceeding.

  2. There has been no appeal from Crow J’s decision and there is no challenge to the findings made by his Honour.

  3. On 21 February 2022, the plaintiffs filed the present application, which seeks an order that the stay be lifted.  The plaintiffs submit that there has been a material change of circumstances[3] since the stay was granted, justifying an order lifting the stay, because:

    (a)first, as a consequence of the making of the costs order in the defendant’s favour, the defendant does now have a substantial asset in Queensland; and

    (b)secondly, in another proceeding subsequent to Crow J’s decision, the plaintiffs…

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Details
Case
[2022] QSC 46
Decision Date

CaseChat Overview and Summary

Zabusky v Virgtel Limited was a case heard by the Queensland District Court, where the plaintiffs sought to enforce a Nigerian judgment against the defendant. The defendant applied for the proceeding to be permanently stayed, arguing that it was not the appropriate forum because they had no assets in Queensland. The court agreed and granted the stay, ordering the plaintiffs to pay the defendant's costs of the proceeding, including the application for the stay. The plaintiffs then sought to lift the stay, arguing that the defendant now had an asset in the jurisdiction, namely the benefit of the costs order. The defendant's legal costs were paid by a third party. The court was required to determine whether the costs order was an asset of the defendant that would justify lifting the stay.

The court considered the relevant legal principles and authorities, and found that the costs order was not an asset of the defendant. The court held that the costs order was a liability of the defendant, not an asset, and that it did not constitute a benefit that could be enjoyed in Queensland. The court also noted that the fact that the defendant's legal costs were paid by a third party did not change this conclusion. The court found that there were no other grounds on which the stay could be lifted, and dismissed the plaintiffs' application.

The court's reasoning was based on a careful analysis of the relevant legal principles and authorities, and a consideration of the facts of the case. The court found that the costs order was not an asset of the defendant, and that there were no other grounds on which the stay could be lifted. The court's decision was consistent with established legal principles and authorities, and was therefore a correct application of the law to the facts of the case.

The final order of the court was that the application to lift the stay was dismissed. The court found that the costs order was not an asset of the defendant, and that there were no other grounds on which the stay could be lifted. The plaintiffs were therefore unable to enforce the Nigerian judgment against the defendant in Queensland, and the stay order remained in place.

Orders

Orders of the court

The application is dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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