Application for leave to amend, Anshun estoppel, abuse of process: Equuscorp Pty Ltd & Anor v Acehand Pty Ltd & Ors [2010] VSC 89 (30 March 2010)
March 31, 2010
In a wide ranging and detailed judgment in Equuscorp Pty Ltd & Anor v Acehand Pty Ltd & Ors Hollingworth J considered Anshun principles and abuse of process in the context of an application to amend.
FACTS
The facts are unusual. The plaintiff, Equuscorp, commenced proceedings against hundreds of defendants who were investors in forestry schemes which collapsed. Equuscorp was the lessor of properties upon which the forests were located and the defendants were lessees. Equuscorp sued each defendant individually however it was agreed through case management that there would be a trial against two defendants. They were not test cases, but clearly their outcome would have an impact on the others. At trial Equuscorp lost with the court finding that the leases were void for uncertainty and were unenforceable because they contravened the NSW Local Government Act (the land was located in NSW). An appeal to the Court of Appeal failed.
Later Equuscorp’s solicitors informed a group of the defendants (known as the Mills Oakley Defendants) that they would be amending their statements of claim against the remaining defendants to plead:
- the agreements in question were not leases but rather licences;
- a claim of unjust enrichment.
The Mills Oakley Defendants contended that the amendment was an abuse of process, the outcome of the previous trial constituted an Anshun estoppel, the proposed claim was unarguable and they would suffer prejudice not compensible by an order for costs [13]. Daley AsJ dismissed the application to amend.
ANALYSIS
Amendment generally
Aon Risk Services Australia Limited v ANU now dominates decision making on amendment applications. Hollingworth J considered it in detail providing a very useful synopsis of the guiding principles. She recounted, at [19] the relevant factors in exercising the discretion to permit amendment are:
(a) The nature and importance of the amendment to the party Read the rest of this entry »