[2025] WADC 22
General information, not legal advice.
District Court of WA
2025-04-09
Original judgment source is linked above.
(a) Emma and Jane ought to be granted leave to amend the scope of their application and to bring the application outside the time limits prescribed under the RSC;
(b) Jason seeks to advance his money claims in the writ on two bases:
(c) Jason's primary claim based on breach of contract is untenable in that:
(i) Jason commenced his action in this court after the expiration of the limitation period applicable to Jason's contractual claim under the Limitation Act; and
(ii) Jason has not shown any arguable basis to justify the extension of that limitation period under s 38 of the Limitation Act;
(d) for that reason, Emma and Jane are entitled to summary judgment dismissing Jason's contractual claim;
(e) as for Jason's alternative claim based on misrepresentation, the statement of claim fails to disclose a reasonable cause of action known to the law;
(f) while Jason's statement of claim should be struck out in its entirety, it is inappropriate to summarily dismiss Jason's action in its entirety;
(g) rather it is appropriate that Jason be granted a further opportunity to replead a viable cause of action based on misrepresentation.
(a) on the one hand, indemnify Jason in respect of the Jones Repayment Claim (or else arrange with her parents to waive that claim); or
(b) on the other hand, leave the Jones Repayment Claim out of the equation (that is, leave her parents free to pursue that claim against Jason).[5]
(a) 'repayment of $57,982.60 superannuation rollover pursuant to contractual breach and misleading and deceptive conduct'; and
(b) $487,500 'for loss of wages and superannuation from 6 July 2015 to May 2020 ... pursuant [to a] loss of opportunity due to contractual breach, misleading and deceptive conduct resulting in loss of chance ...'.
Are Emma and Jane entitled to amend the grounds of the application?
(a) Emma's and Jane's written submissions expressly relied on O 20 r 19 of the RSC;
(b) it was not apparent to me that there was any material prejudice to Jason in granting the application to amend; and
(c) in any event it is desirable, in order that I might do justice between the parties, that I also have at my disposal the option of striking out all or part of Jason's claim, rather than be restricted to the relatively blunt instrument of summary judgment.
Are Emma and Jane entitled to bring the application outside the prescribed time limits?
(a) the delay is explained by the fact that Emma and Jane were unrepresented at the time the writ and statement of claim were filed, and upon appointing solicitors I am satisfied those solicitors acted reasonably promptly to bring the application (following conferral);[15]
(b) the defects in Jason's claim alleged by Emma and Jane, at least in the context of the statute of limitations and the pleading of Jason's alternative misrepresentation claim, are meritorious;[16]
(c) the gravity of those alleged defects is substantial, and if a summary judgment or strike-out application succeeds I accept that it is likely to result in a significant saving in the resources of the parties and the court (in that time will not be wasted on untenable or obscure claims); and
(d) while there is a level of prejudice to parties wherever there are procedural delays, I am satisfied that Jason has not be unduly prejudiced by the delay in bringing of the application.
What is the nature of each of Jason's claims the subject of the writ?
Jason's alternative claim based on misrepresentations
In February of 2021 I contacted Services Australia and was informed that they had a voice recording of [Emma] from a phone call in 2015 after the court hearing, admitting that the money transferred to her from my superannuation fund was in lieu of child support. CSA informed her that as a result of this statement she could receive a bill from Centrelink due to the large amount that was transferred. Emma then retracted this statement.
(b) subsequent to that request, Services Australia carried out an investigation which led to the prohibition order against him being lifted and Services Australia applying certain credits in his favour in respect of child support; and
(c) following that, 'Emma agreed the superannuation rollover was in lieu of child support but again retracted her statement and lodged a dispute with the [AAT] ...'.[19]
(a) before the AAT hearing, there were two instances in which Emma retracted a prior admission she had made to Services Australia to the effect that Jason's superannuation rollover had extinguished Jason's child support liabilities; and
(b) at the AAT hearing, Emma made certain representations to the AAT which led to a decision being made adverse to Jason.
Jason intends to allege that the misrepresentations were fraudulent
(a) Jason first learned of Emma's first retraction in April 2022 in a conversation with Services Australia (contrast par 21 of the statement of claim which dates this as February 2021);[20]
(b) Jason says that Emma's second retraction occurred at some time shortly after 30 August 2022, at around the time she lodged her objection with the AAT;[21] and
(c) Jason says that the AAT made a decision in Emma's favour based on 'Emma's false and misleading documents' in the AAT proceedings.[22]
(a) he is a victim of fraud by reason of false and fraudulent claims made as to the purposes of his superannuation rollover, those statements being made in 2015 and in 2022;[23] and
(b) he has obtained voice recordings which 'unequivocally prove that the money paid via [his] superannuation rollover was in lieu of child support and that the claims [to the contrary] were fraudulent ...'[24]
(b) post-separation, Emma withdrew an unspecified amount from the 'equity loan' (which I understand to refer to the $50,000 second loan that had been secured against the home); and
(c) post-separation, Emma and Jane diverted payments of more than $12,000 from Jason's business customers to Emma's and Jane's own benefit.[27]
(a) he accepted these allegations went beyond the scope of the claims indorsed on the writ; and
(b) these allegations were only invoked by him as a form of evidentiary bolster of the claims the subject of the writ (in effect by attacking the character of Emma and Jane), and that he was not seeking recovery of a specific amount for these allegations.[28]
What are the relevant principles governing Emma's and Jane's applications?
What are the relevant legal principles governing an application under O 16 of the Rules of the Supreme Court 1971 (WA)?
What are the relevant legal principles governing an application under O 20 r 19 of the Rules of the Supreme Court 1971 (WA)?
Should Jason's primary contractual claim be summarily dismissed or struck out?
Did Jason commence these proceedings before the applicable limitation period expired?
Is Jason nevertheless to be granted an extension of the limitation period under s 38 of the Limitation Act 2015 (WA)?
(a) the plaintiff bears the onus of demonstrating that the limitation period should be extended;[36]
(b) 'other improper conduct' refers to 'a breach of the standards of conduct that would be expected of a person in the defendant's position determine objectively and there is no requirement that the defendant had a consciousness of the impropriety nor an element of moral turpitude';[37]
(c) there must be a causal connection between the fraudulent or improper conduct and the delay in bringing the action; the court needs to be satisfied that the delay in commencing the action was attributable to fraudulent or improper conduct;[38]
(d) it is not necessary that the fraudulent or improper conduct be the sole, dominant, direct, or proximate cause of the delay in brining proceedings - but it must be a cause;[39]
(e) typically, s 38 is concerned with conduct of a defendant party 'that is liable or intended to impede or delay the commencement of an action by the prospective plaintiff', such as conduct that conceals the existence of a claim, or of facts critical to the claim;[40] and
(f) even if the conditions for the exercise of the extension of time power are satisfied, the court retains a broad discretion (guided by the interests of justice) as to whether to grant the extension.[41]
Whether Jason demonstrated grounds for an extension of the limitation period in respect of his contractual claim
(a) Jason has not explained or demonstrated how Emma's and Jane's conduct at any time over the period from 2015 to 2022 has caused or contributed to any delay in the bringing of this action.
(b) It must have been apparent to Jason when Services Australia continued to pursue him from about mid-2015 and onwards that Emma had (on his view) dishonoured the settlement agreement. I cannot see why Jason could not have commenced appropriate proceedings as early mid-2015 in respect of Emma's (alleged) dishonouring.
(c) As for Jane, the gist of Jason's complaint against her is that she did not revoke the default judgment, or have it removed as a negative mark against his credit rating. It must have been apparent to Jason shortly after the 2015 settlement agreement that Jane had not taken the action he believes she was obliged to take. On the evidence before me, there is nothing in Jane's conduct that could be said to have delayed the commencement of a legal claim against Jane.
Should Jason's alternative claim based on misrepresentation also be summarily dismissed?
(a) the authorities are emphatic that where an allegation of fraud is sought to be raised, the allegation must be pleaded with clarity and specificity;[46]
(b) because there are many different species of 'fraud' known to the law, the elements of the particular cause of action relied on by the plaintiff ought to be clearly supported in the pleading;[47]
(c) the material facts supporting a conclusion of fraud must be pleaded;[48] and
(d) here, contrary to these authorities, Jason's statement of claim does not explicitly mention fraud and his pleading does not set out the material facts which could justify an allegation of fraud, nor does it identify with any clarity the particular cause of action being advanced.
Should summary judgment be granted dismissing the misrepresentation claim against Emma?
(a) the statement of claim does not disclose a reasonable cause of action based on misrepresentation against either Emma or Jane;
(b) while the statement of claim discloses a cause of action based on breach of contract, that contractual claim is being summarily dismissed (and hence cannot sustain the pleading); and
(c) I have also found that Jason's extraneous collateral allegations ought to be struck out (see [67] above).
(a) the court needs to be mindful that ordinarily self-represented litigants will not be across the pleading rules, and should consider their pleadings in that light; and
(b) the court should be prepared to be flexible in approaching a self-represented litigant's pleadings and cautious not to summarily terminate a claim based on the manner of its expression in a pleading.[50]
(a) properly pleads a viable cause of action which is not manifestly barred by the Limitation Act; and
(b) which otherwise answers the complaints raised by Emma here.
(a) amend their application dated 14 October 2024 so that the application be read as to also include application to strike-out the entirety of the statement of claim under O 20 r 19(1) of the RSC; and
(b) bring the said application (as amended) outside the time limits prescribed by O 16 r 1(1) and O 20 r 19(3)(a) of the RSC.
(a) paragraphs 6, 7 and 8 of the statement of claim be struck-out pursuant to O 20 r 19(1)(b);
(b) the balance of the statement of claim be struck out pursuant O 20 r 19(1)(a) of the RSC;
(c) Jason have leave to replead the statement of claim, such leave being limited to repleading a claim based on misrepresentation; and
(d) Jason to file and serve an amended statement of claim consistent with these orders within a reasonable time frame.
I certify that the preceding paragraph(s) comprise the reasons for decision of the District Court of Western Australia.
[1] First defendant's affidavit filed 14 October 2024, page 8.
[2] I note that this value differs from the value of the Jones Repayment Claim set out in the statement of claim (namely $50,492). However, I note that Jason's affidavit filed 22 October 2024 (in support of his discovery application) indicates (at par 16) that the value of the Jones Repayment Claim was $54,092.
[3] First defendant's affidavit filed 14 October 2024, page 11.
[4] First defendant's affidavit filed 14 October 2024, page 13.
[5] First defendant's affidavit filed 14 October 2024, page 14.
[6] First defendant's affidavit filed 14 October 2024, pages 15 - 16.
[7] First defendant's affidavit filed 14 October 2024, pages 16 - 17.
[8] First defendant's affidavit filed 14 October 2024, page 17.
[9] First defendant's affidavit filed 14 October 2024, page 21.
[10] First defendant's affidavit filed 14 October 2024, pages 22 - 24.
[11] First defendant's affidavit filed 14 October 2024, pages 25 - 42.
[12] It was not in dispute that the balance of Jason's superannuation rollover (namely $12,000) did operate as a credit against Jason's child support liabilities.
[14] For O 16 r 1 of the RSC, see HSBC Bank Australia Ltd v Mavaddat [2015] WASC 153 [9]. For O 21 r 19 of the RSC, see Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 13] [2021] WASC 214 [154].
[15] See first defendant's affidavit filed 14 October 2024, under the heading 'Leave to make Application'.
[16] As to the relevance of the merits of an O 21 r 19 application to an application to bring such an application out of time, see the Red Book [20.19.3] and the authorities cited therein.
[17] Jason's statement of claim in this context refers to the default judgment as a 'caveat' - see statement of claim pars 14 and 17. It is clear to me that he means to refer to the default judgment that had been obtained by Christine and John.
[18] For my articulation of my understanding of Jason's claim, see ts 6, ts 11 - ts 13, ts 15, ts 21. For Jason's acceptance of the correctness of this understanding, see ts 36, ts 45. See also the exchanges with Jason at ts 39 - ts 41, ts 44.
[19] Statement of claim filed 23 April 2024, pars 21 - 24.
[20] Jason's affidavit filed 22 October 2024, par 24; Jason's affidavit filed 6 November 2024, par 24.
[21] Jason's affidavit filed 22 October 2024, par 30 (read in context); Jason's affidavit filed 6 November 2024, par 30 (read in context).
[22] Jason's affidavit filed 22 October 2024, par 31 and par 33; Jason's affidavit filed 6 November 2024, par 31 and par 33.
[23] Jason's affidavit filed 3 January 2025, par 1.
[24] Jason's affidavit filed 3 January 2025, par 6.
[29] Given their scandalous and irrelevant character, the striking out would be pursuant to O 19 r 19(1)(b): see Hongkong Xinhe International Investment Company Ltd v Bullseye Mining Ltd [No 3] [2021] WASC 260 [62].
[30] Pisano v South Metropolitan Health Service [2023] WASCA 80 (Pisano) [48] - [52] (Buss P, Vaughan & Hall JJA).
[32] Neil James Duckworth as trustee for The Ocean Farm Trust v Water Corporation [2024] WASC 90 [33] (Howard J).
[33] See the Red Book [16.0.3] and the authorities cited therein.
[34] Lee v Lawfirst Pty Ltd [No 2] [2023] WASCA 166 [80] - [82].
[35] The limitation period for claim under a contract is generally 6 years: s 13(1) Limitation Act. As to when a cause of action based on breach of contract accrues, see Trans Petroleum (Australia) Pty Ltd v United Petroleum (WA) Pty Ltd [No 2] [2022] WASC 460 [69] (Trans Petroleum) (Smith J).
[36] Trans Petroleum [83] (Smith J). See also Limitation Act 2005 (WA), s 79(3).
[37] Latchman v Maybo Limited [2023] WADC 17 [22] (Latchman) (Bowden DCJ).
[38] Morara Pty Ltd v Kingslane Property Investments Pty Ltd [2024] WASCA 123 [57]; Latchman [26] (Bowden DCJ).
[39] Latchman [38] (Bowden DCJ); Trans Petroleum [86] (Smith J).
[40] Trans Petroleum [85] (Smith J).
[41] Trans Petroleum [85] (Smith J).
[42] Jason's outline of submissions filed 11 January 2025, page 1.
[43] A summary of the relevant principles is contained in Meredith v Commonwealth of Australia (No 2) [2013] ACTSC 221 [383] - [390] (Refshauge J) (Meredith). For a more recent decision addressing when a duty of care arises in a negligent misstatement case, see Girgis v Poliwka [No 6] [2019] WASC 230 [888] - [889] (Vaughan J, as his Honour then was).
[44] Meredith [387]. See also Anchorage Capital Master Offshore Ltd v Sparkes [2023] NSWCA 88 [375] - [384].
[45] Section 18(1) of the Australian Consumer Law (WA) provides that 'A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive'.
[46] G&S Engineering Services Pty Ltd v MACH Energy Australia Pty Ltd (No 4) [2021] NSWSC 1052 [41] - [43] (Williams J); Trackem Pty Ltd (ACN 168 532 269) v Revenue Partners (A Partnership) [2021] WASC 245 [32] - [33] (Archer J).
[47] Bozic v Billis [2021] WASC 88 [24] - [26] (Allanson J).
[48] Bozic v Billis [31] (Allanson J).
[49] As to those elements and the need for a precise pleading against them, see Allianz Australia Insurance Limited v Yu [2024] NSWSC 31 [14] - [22], [30] - [31] (Weinstein J).
[50] McGavin v McGavin [2024] WASC 408 [10] - [11].
Allianz Australia Insurance Limited
Yu
Allianz Australia Insurance Limited v Yu [2024] NSWSC 31
Anchorage Capital Master Offshore Ltd v Sparkes [2023] NSWCA 88
Bozic v Billis [2021] WASC 88
G&S Engineering Services Pty Ltd v MACH Energy Australia Pty Ltd (No 4) [2021] NSWSC 1052
Girgis v Poliwka [No 6] [2019] WASC 230
Hongkong Xinhe International Investment Company Ltd v Bullseye Mining Ltd [No 3] [2021] WASC 260
HSBC Bank Australia Ltd v Mavaddat [2015] WASC 153
Latchman v Maybo Limited [2023] WADC 17
Lee v Lawfirst Pty Ltd [No 2] [2023] WASCA 166
McGavin v McGavin [2024] WASC 408
Meredith v Commonwealth of Australia (No 2) [2013] ACTSC 221
Morara Pty Ltd v Kingslane Property Investments Pty Ltd [2024] WASCA 123
Neil James Duckworth as trustee for The Ocean Farm Trust v Water Corporation [2024] WASC 90
Pisano v South Metropolitan Health Service [2023] WASCA 80
Trackem Pty Ltd (ACN 168 532 269) v Revenue Partners (A Partnership) [2021] WASC 245
Trans Petroleum (Australia) Pty Ltd v United Petroleum (WA) Pty Ltd [No 2] [2022] WASC 460
Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 13] [2021] WASC 214