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[2026] NSWSC 912
Supreme Court of NSW
2026-07-31
Harrison AJ
Original judgment source is linked above.
Source: NSW Caselaw (www.caselaw.nsw.gov.au). Converted to plain text by ZoeLaw. Not the official version.
Medium Neutral Citation: Bryce v Goggin [2026] NSWSC 912
Hearing dates: 14 July 2026
Date of orders: 31 July 2026
Decision date: 31 July 2026
Jurisdiction: Common Law
Before: Harrison AJ
Decision: (1) Extend until 19 January 2026 the time for filing the summons.
(2) To the extent necessary, grant leave to appeal from the whole of the decision below.
(3) Allow the appeal and set aside the judgment of the Court below.
(4) Remit the proceedings to the Local Court of New South Wales to be dealt with according to law.
(5) Order that the cost of the proceedings in this Court abide the result of the rehearing.
Catchwords: APPEALS – Local Court – where dispute concerned characterisation of a cash payment – where defendant below was self-represented – whether the judge erred in application of the rule in Browne v Dunn – whether the judge erred in providing inadequate reasons
Legislation Cited: Local Court Act 2007 (NSW), s 39(1)
Cases Cited: Bauskis v Liew [2013] NSWCA 297
Browne v Dunn (1893) 6 R 67
Caldwell v J A Neilson Investments Pty Ltd (2007) 69 NSWLR 120
Eastman v The Queen (1997) 76 FCR 9
Ellis v Wallsend District Hospital (1989) 17 NSWLR 553
Flower & Hart v White Industries (Qld) Pty Ltd (1999) 87 FCR 134
Hadid v Redpath [2001] NSWCA 416
Hamod v New South Wales [2011] NSWCA 375
Landbridge Transport Pty Ltd v Buckley [2014] NSWSC 1379
Madden’s Stable Bedding Pty Ltd v Reid [2014] NSWSC 554
Masterton Homes Pty Ltd v Palm Assets Pty Ltd [2009] NSWCA 234
Mohareb v Local Court of New South Wales [2024] NSWCA 235
MWJ v The Queen (2005) 80 ALJR 329
Payless Superbarn (NSW) Pty Ltd v O’Gara (1990) 19 NSWLR 551
R v Birks (1990) 19 NSWLR 677
Seymour v Australian Broadcasting Commission (1977) 19 NSWLR 219
West v Mead [2003] NSWSC 161
Zhang v Zhang [2022] NSWSC 924
Zong v Lin [2022] NSWCA 136
Category: Principal judgment
Parties: Kitt Bryce (Plaintiff)
Craig Goggin (Defendant)
Representation: Counsel:
D Morris (Plaintiff)
M Southwick (Defendant)
Solicitors:
Gadens (Plaintiff)
Bevan & Co Lawyers & Conveyancers (Defendant)
File Number(s): 2026/24788
Publication restriction: Nil
HIS HONOUR: These proceedings raise a not uncommon issue of whether money paid in cash by a home owner to a builder, whose company had contracted to build his house, was paid by the home owner to the builder’s company in accordance with a formal written contract and as part of the agreed contract price or was alternatively paid to the builder in his personal capacity as a separate contract in order to secure a reduced price for part of the contracted works. As is usually the case, the issue attains significance here because the builder’s company failed to complete the construction of the house before it went into liquidation owing money to creditors.
In proceedings in the Local Court, Craig Goggin sued Kitt Bryce to recover $90,000 that he maintained was paid to Mr Bryce personally, and not to Bryce Built Constructions Pty Ltd, the company with which Mr Goggin and his wife had contracted to build their house. Although it was never clearly articulated in the lower court pleadings or in the course of the hearing before his Honour, it is reasonably apparent, and the parties accept, that Mr Goggin sued upon an alleged total failure of consideration for the payment. Judge Clisdell gave judgment for Mr Goggin for the full amount plus costs.
Mr Bryce appealed to this Court from the whole of the decision below by summons filed on 19 January 2026. He relies upon seven grounds of appeal as follows:
The learned judge made an error of law in finding that the Court was required to accept as accurate, or to give more weight to, any part of Mr Goggin’s evidence about which no questions were asked in cross-examination.
The learned judge made an error of law in failing to provide adequate reasons for his finding that Mr Bryce in his personal capacity entered into a binding legal agreement with Mr Goggin.
The learned judge made an error of law in finding that Mr Bryce in his personal capacity entered into a binding legal agreement with Mr Goggin because the admissible evidence was not capable of supporting a finding that the parties intended to enter into binding legal relations with each other.
Alternatively, the learned judge made an error involving a mixed question of fact or law in finding that Mr Bryce in his personal capacity entered into a binding legal agreement with Mr Goggin because the Court ought to have held that, on the admissible evidence, it could not be satisfied that the parties intended to enter into binding legal relations with each other.
The learned judge made an error of law in finding that no payments had been made in respect of plastering work prior to Mr Bryce’s company going into liquidation because the admissible evidence was not capable of supporting such a finding.
The learned judge made an error of law in permitting Mr Goggin to adduce new evidence-in-chief and tender new documents at the hearing in circumstances where this amounted to a denial of procedural fairness.
The learned judge made an error of law in permitting Mr Goggin to adduce hearsay in his evidence-in-chief in circumstances where this amounted to a denial of procedural fairness.
“2. On or about February 2023, the Plaintiff entered into a Builder’s Contract with Bryce Built Constructions Pty Ltd (ACN 158 853 886) (In Liquidation) for the construction the Plaintiff’s home situate at 7251 Monaro Highway, Williamsdale NSW 2620 (‘the Home’).
PARTICULARS
a. As part of the Builders Contract, it was provided that plastering works would be completed on the Home for $123,524.00.
3. In or about January 2024, the Defendant approached the Plaintiff and suggested that if the Plaintiff paid cash and off the books of Bryce Built Constructions Pty Ltd, the plastering works could be done cheaper.
4. In or about January 2024, the Plaintiff and Defendant agreed that the Plaintiff would pay $105,000 cash for the plastering works on the Home and in doing so, the plastering component of the Builders Contract would be removed (‘the Services Agreement’).
PARTICULARS
a. The Plaintiff and the Defendant agreed orally that upon the Plaintiff providing the Defendant with $105,000.00 cash, the Defendant will organise sub-contractors to commence and complete the plastering aspect of the building works on the Home.
5. On or about February 2024, $6,000 cash was paid by the Plaintiff to the Defendant for insulation and batten installation as part of the Services Agreement. That part of the Services Agreement was completed.
6. On 25 March 2024, the Defendant verbally requested the full remaining amount of $99,000.00 pursuant to the Services Agreement be paid to the Defendant to save him having to ask for multiple partial payments.
7. The Plaintiff and the Defendant agreed verbally that the Plaintiff would pay $90,000.00 cash on 25 March 2024, and the remaining $9,000.00 would be paid upon completion.
8. In accordance with the Services Agreement, on 25 March 2024, the Plaintiff paid to the Defendant $90,000.00 cash (‘the Cash’).
9. Upon acceptance of the Cash, the Defendant signed a receipt.
10. Upon receipt of the Cash and without authority, the Defendant applied $34,000.00 for bricklaying labour, leaving $62,000.00 remaining for the plastering works.
PARTICULARS
a. Using $34,000.00 cash for bricklaying fell outside the Services Agreement between the Plaintiff and the Defendant.
b. The $34,000.00 for bricklaying was agreed upon and included in the Builder Contract, outside of the Services Agreement.
c. The $34,000.00 cash was never paid for the bricklaying works.
11. From March 2024 until November 2024, the Defendant failed to make any progress in line with the Services Agreement.
12. Despite demand from the Plaintiff, the Defendant failed to engage.
13. On or about 21 November 2024, the Defendant told the Plaintiff that he could not complete the Services Agreement.
PARTICULARS
a. On or around 21 November 2024, the Defendant contacted the Plaintiff via phone call.
b. The Defendant told the Plaintiff his business, Bryce Built Constructions Pty Ltd, was going into liquidation.
c. The Plaintiff inquired about the cash he had provided to the Defendant personally outside of Bryce Built Constructions, to which the Defendant told him all the money was gone.
14. The Defendant has failed, refused or neglected to complete the services agreement.
15. Despite demand, the Defendant has failed, refused or neglected to repay the sum of $90,000.00 to the Plaintiff.
16. The Plaintiff seeks payment of the sum of $90,000.00 in accordance with the Services Agreement.”
“4. The defendant denies the content of paragraph 4 of the Statement of Claim and says further that in or about January 2024 the Plaintiff requested that Bryce Built Constructions in liquidation receive $96,000 cash, to be provided by Bryce Built Constructions to the plasterer for the plastering works, the scope of which was not yet fully defined. The Defendant denies the content of the ‘Particulars’ pleaded at paragraph 4(a) of the Statement of Claim and says further that the Plaintiff requested that Bryce Built Constructions negotiate with the plasterers a cash price on the Plaintiff’s behalf, for a discounted price on the final scope of works to the benefit of the Plaintiff. The Defendant says further that the identity of the plasters were [sic] at this time well known to the Plaintiff and that the Plaintiff himself had discussions with the plasterers as to the scope and price of the plastering works for a cash price without Bryce Built Constructions representative present.
5. The Defendant denies the content of paragraph 5 of the Statement of Claim and says further that any agreement entered into was between the Plaintiff and Bryce Built Constructions and at no time was any contract formed between the Plaintiff and the Defendant as alleged or otherwise.
…
8. Defendant denies the content of paragraph 8 of the Statement of Claim and says further that any cash payments made were received on behalf of Bryce Built Constructions.
9. As to paragraph 9 of the Statement of Claim the Defendant admits that a receipt was provided to the Plaintiff acknowledging the receipt of $90,000 cash but says that the Defendant in signing the receipt was acting on behalf of the recipient, Bryce Built Constructions.”
Other paragraphs of the defence were in or to the same or similar effect and need not be reproduced here.
Although he was represented in the proceedings before me, Mr Bryce was unrepresented in the Local Court. He has no legal training. It was in these circumstances that the learned judge quite properly and most helpfully made the following preliminary remarks for the benefit of Mr Bryce:
“HIS HONOUR: Now, Mr Bryce, pardon me, a lot of talking before lunch. This is a civil matter but it’s in what we call the general division, which means we actually have more formality in this proceeding than we might have in what we call the small claims division. Now, as you’re representing yourself, I’m just going to run through the procedure that we follow. Generally speaking, the evidence is given by way of statement. There might be some short additional evidence that may be necessary because of things that have changed since the statement was originally prepared.
And then often attached to the statement are a number of annexures or exhibits and that represents the evidence in the case. In terms of oral evidence, then we turn to what’s called cross-examination. But before we get to that, there has to be a determination about the admissibility of any evidence which has been proposed or tendered on behalf of the parties. Which means that, generally speaking, I would, for example, say to Mr Whitfield, are you going to read the statement of Mr Goggin? And he’d say yes. And I’d say, are you pressing all of the annexures? And he’ll say yes. And I’ll turn to you and say, do you have any objection to any part of the statement or to any of the annexures or exhibits? And if you do, then we have some argument about it.
If you don’t, then that will be the evidence for that witness. And as I say, subject to there being anything that might need to be clarified as a result of things that have changed since the statement was made, that will be what we call the evidence-in-chief. Then we move to cross-examination, which is where you get an opportunity to ask questions to challenge the evidence produced by the plaintiff. Now, cross-examination requires asking a question, a question requires an answer. But if you simply make a statement, there won’t be any answer. So, you have to actually ask a question like is it raining outside today is a question that requires an answer. I say it’s raining outside is a statement that doesn’t require an answer, if you can see the difference between those.
Once you’ve finished with your questioning and cross-examination then Mr Whitfield will have the opportunity to do what we call re-examination if he thinks it is necessary to clarify an issue that’s been raised by you in cross-examination and for which he wants Mr Goggin to give a further explanation.
But it only arises out of questions that you ask in cross-examination. It’s not an opportunity for fresh evidence. Now, as I understand it, the only statement I have at the moment is from the plaintiff. And Mr Whitfield, you’re probably going to be objecting to the form of the statement from Mr Bryce, but I’ll probably cut him a fair bit of slack in terms of that.
Basically, it’s a series of points, and then he’s got some documents which he’s called exhibits as well, but we’ll see how we go there. And then Mr Whitfield will have a chance to challenge certain parts of your evidence if he chooses to, and I’ll rule on that at the appropriate time, and then he will cross-examine you. You will get a chance to make a short statement if things have arisen since your statement was prepared because these statements were all prepared over a month ago. So, something may have come up since then, I don’t know. And then once Mr Whitfield has finished asking you questions, you can make a further clarifying statement if you think there’s something that needs to be clarified as a result of the questions you’ve been asked in cross-examination.
And that will be your case, because that’s the only evidence you file. Then we move to submissions. In civil matters, the defendant goes first, the plaintiff goes second, and the defendant gets a right of reply to the plaintiff’s submissions. So, you’ll address first, then Mr Whitfield will address, and then you’ll have a chance and you don’t have to make any further submissions in reply, but if you choose to, you get that opportunity, and then I make my decision.”
“3. On or about 6 February 2023, I engaged Kitt Bryce of BBC for the construction of a home dwelling on the Property…
4. Construction on my home commenced on June 2023 and concluded by BBC on 21 November 2024 after BBC abandoned the contract.
5. Since signing the construction contract with BBC, I made the following payments directly to BBC…”
Mr Goggin then lists a series of payments made by him to Bryce Built Constructions totalling $1,349,684.58.
Mr Goggin’s statement continued:
“6. All payments outlined in paragraph 5(a)-(m) were paid directly to a bank account nominated and owned by BBC all pursuant to invoices that BBC had rendered to me.
7. On 03 October 2024, I paid $74,961.34 pursuant to Invoice #7750 for the variation of windows. I paid this directly to Taylor’s Windows and not through BBC because I was unable to trust Mr Bryce anymore as I depose to later at paragraph 21…
8. The next stage of the build was the plastering works, which was due to commence on or about March 2024. The building contract provided for an allowance of $123,524.00 for plastering.
9. In or about January 2024, Kitt Bryce approached me on site at the Property and told me that if I paid him for the plastering component of the build using cash and off the books of BBC, then I could save money. Mr Bryce told me that I could pay $105,000.00 cash directly to him and that he would vary the building contract to remove the plastering works. This was a saving to me of $18,524.00. I agreed to pay cash. Over the next 3 Months I have withdrew [sic] the cash.
10. On 13 March 2024, I paid $6,000.00 in cash to Mr Bryce. It was verbally agreed between myself and Mr Bryce that this $6,000.00 was to commence the insulation and batten installation part of the plastering works. This part of the job was completed as per the agreement.
11. On 24 March 2024, Mr Bryce phoned me and requested that I pay him the full amount of $99,000.00 in cash so that he was able to organise and pay the tradesmen for the plastering works to save him from consistently having to ask me for multiple partial payments. I agreed to this and stated that there will be no more money / payments until the plastering is complete and correct windows installed.
12. On 25 March 2024, I provided the $90,000.00 cash directly to Mr Bryce. When I gave Mr Bryce the cash, he signed a receipt that stated, ‘Plastering paid in cash – 25/3/2024 - $90,000’. I witnessed Mr Bryce sign the receipt. … And again, agreed that there will be no more money / payments until the plastering is complete and correct windows installed.
13. It was verbally agreed between myself and Mr Bryce on 25 March 2024 that I would pay him $90,000.00 cash, however the remaining $9,000.00 cash would be paid upon completion.
14. Upon receiving the cash payment of $90,000.00, I noticed that work had slowed significantly on my build.
…
32. On 4 November 2024, Mr Bryce told me that he agreed that I had paid more than required up front being the $90,000 cash and he will order the doors as they were included in the original quote which the cash paid for.
33. On 11 November 2024, Mr Bryce told me that he ordered the doors on 6 November 2024 and they had a 20-day lead time. Later that same day, I spoke with the plasterer and advised him that the doors had been ordered. The plasterer responded words to the effect of, ‘that’s impossible because I would have received a confirmation email. Since it’s a special order it cannot be ordered until paid for’. Again, later that day, I received a text message from Mr Bryce telling me that he had ordered the doors but had not yet paid for them.
34. On 21 November 2024, Mr Bryce contacted me via phone call. He was crying and hard to understand. Mr Bryce told me words the effect of, ‘I’m sorry but it’s all gone. I’m broke. It’s not your fault but I have lost it all the last 16 years were a waste. I’m fucked. I’m fucked. My company is going into liquidation’. I asked where is my cash and Mr Bryce responded, ‘the cash is all gone’. I asked Mr Bryce if he even paid the bricklayer and he responded ‘no’.
35. Later that day on 21 November 2024, Mr Bryce sent me an email with an attachment which outlined all purported payments made by BBC or Mr Bryce himself for the build. This is not an accurate representation of the costs outlaid to date as he never paid $34,000 to Scott (bricklayer). All items in the PDF are wrong...
36. On 10 December 2024, I spoke to the bricklayer, Scott Lloyd, and he stated he has never actually been paid as advised by Mr Bryce.
37. On the 6 March 2025, Mr Bryce and I had a phone conversation prior to me initiating proceedings. I told Mr Brycer that I wanted my cash back. The reception was patchy and the call terminated. Mr Bryce then sent me a text message stating, ‘Craig call back when you are in better reception as I do want to work this out’. Once I called Mr Bryce back, he asked me if I could wait until July 2025, he would’ve had his new ABN for six months and will be able to get a loan to pay me back the cash. I believe we agreed and ended the conservation on good terms.
38. Then on 24 April 2025, I rang Mr Bryce for an update and he would not answer my calls. Since this date, I have not had contact with Mr Bryce and have not received my $90,000.00 cash back.”
“HIS HONOUR: Mr and Mrs Goggin entered into a contract to build a residence somewhere in the region of 1.5 to $1.6 million. It appears there is another contract for somewhere around 1.2 million. They have all been signed and it is hard to know which one is which. One of the difficulties with building and it is something that having been through a couple of builds myself, I was very careful to ensure that anything we did was correctly documented. From the smallest variation for a double power point instead of a single power point or an extra down light in a room, that was done. The end result was we got a nice home and we did not have a day in Court.
Now, of course I got the advantage of having been in Court on several occasions for many years for both builders and owners who have fallen foul of the old rule it is not worth the paper it is printed on if it is not in writing. Anyway, it does appear that the contract, at least for the major part of the build, was a contract between two individuals and a company. What the plaintiff is saying is that, well, do not dispute that contract, indeed, there was performance under that contract to a substantial degree. Work was done, payments were made, and as Mr Bryce said on behalf of the company now in liquidation, every invoice was paid, nothing was left unpaid.
One of the difficulties for Mr Bryce is, of course, he is not a lawyer. And he has attempted as best he can to put on a defence and run a case which in typical complexity of building cases was probably beyond him. I think I have been reasonably generous in allowing a good bit of his evidence to go in when it is not in correct form and I thank Mr Whitfield for his concession, albeit probably through gritted teeth, that it was probably better to do that so we could get a resolution of this case today rather than go back to initial case management and start all over again. The other problem for Mr Bryson being a non-lawyer is that he really did not understand what the effect of a statement was, what the effect of documents were and whether you object or do not object to certain things.
I did try to explain at the beginning of the case that cross-examination was a chance to challenge the version given by the witness. The cross-examination of Mr Goggin consisted of two or three questions only. The effect of that, Mr Bryce, is it means that all of the statement of Mr Goggin is then accepted by the Court as being accurate because it was not challenged. Now, Mr Whitfield, again, in fairness, still allowed you, despite the lack of challenge to that, to give your version. And that is why he did cross-examine you at one point about the March 2025 conversation and why he challenged you about the document signed when you received the cash. Because they are critical to what effectively is what the plaintiff and their case is. It is this.
There were two contracts. There was a contract on the books with the company and there was a contract off the books. Now, the off the books one could still have been with the company but it was not documented in that fashion. Indeed, it was barely documented at all. But what Mr Goggin has given evidence about and he was not challenged on was that there was a conversation where he could save about $18,500 if he paid the plasterer’s cash. Now, where this came further unstuck is that you decided to intervene in the middle of that and make yourself the middleman. And what the plaintiff is saying is you made yourself the middleman because you were desperate for cash at that time because your company was struggling.
And the last thing you would do with a cash arrangement is put the cash into a bank account because the whole purpose of a cash deal is that it never sees the light of day in terms of an audit trail. Because the purpose of paying cash, and I am not being super critical or being nasty about this, but the purpose of paying cash is to avoid certain taxation obligations and the person receiving the cash says, yes, instead of paying 30% of 130 to Dr Jim Chalmers, I will only pay him 15,000. If I pocket the rest in cash, I am in front. The punter is in front because he has only had to pay $18,000 less, and I must say in this day and age where people can find $90,000 in cash given all the cash transaction reporting requirements is another mystery to me but I do know that you can take it out at less than 10,000.
It might be down to 5,000 but 10,000 anyway over a number of weeks and put it in your socks and bury it in the backyard and hope the dog does not find it when they are burying their next bone. But that is the way a cash transaction works and I am satisfied there was a cash transaction here because I have got the evidence of it. That is the document signed by you, Mr Bryce, on the, whatever date it was, p 67 of the bundle. I had better see if I can find it again. Here we are. Plastering, paid in cash, 25/03/2024, $90,000. You acknowledge that that is the document you signed. That is the new contract. It does not say Bryce Built Company or just your signature and you acknowledge you signed it. What is more, you acknowledge you got the cash.
So, that collateral contract as we call it in the law, was entered into between Mr Goggin, Mrs Goggin was not a party to it, and you, because that is the evidence before me in this case, in the statement which is unchallenged and in the document which speaks for itself. There has been evidence about the way in which the build took place and the progress payments and the like and it is plainly apparent that Mr Goggin had the ability, or Mrs Goggin from time to time, to simply transfer money from what appears to be savings accounts of some sort direct to the builder. And that was the company. And that occurred, it appears to be, at least up to $1.5 million. The thing is that Mr Bryce says, well, I never took the money for myself. I took it for the company.
And I did not misappropriate the money and no one is actually suggesting that you did. All they are saying is that you did not apply it to the contract. So, you were given $90,000 to pay for plastering, but not one penny of it appears to have been spent on plastering. That was the contractual arrangement you entered into with Mr Goggin and all of the other background to the company going into liquidation and whether you knew the plasterers and whether they were reliable and who was getting quotes and things and whether or not they were made out to you or your company really does not matter at all because the contract is very simple that the plaintiff is proceeding on today and that is the arrangement where Mr Goggin paid you $90,000 and you were meant to pay the plasterer.
But the benefit of hindsight for both of you, it might have been better if you had simply excised the plasterers from the contract altogether and said, you deal with him. But the minute you put your hand on that cash and took it under your own name as you did, you involved yourself in the contract. What you should have said was, I am going to do the Sergeant Schultz. As far as the plastering occurs, I know nothing, I hear nothing, I see nothing, and suddenly there will be plaster boards up around there. But you did not. You took cash for a particular purpose, and I am satisfied on the balance of probabilities, which is all I have got to be satisfied on. I do not have to be satisfied beyond reasonable doubt, it was not paid to the plasterers.”
“The cross-examination of Mr Goggin consisted of two or three questions only. The effect of that, Mr Bryce, is it means that all of the statement of Mr Goggin is then accepted by the Court as being accurate because it was not challenged.”
It appears clearly that his Honour was here referring to the rule in Browne v Dunn. On that assumption, Mr Morris submitted that his Honour misapprehended or misstated the effect of the rule or alternatively applied it when there was no basis for doing so. He relied upon a consistent line of appellate authority rejecting the proposition that evidence that is unchallenged by cross-examination must be accepted by a court. There is no rule of law that requires acceptance of unchallenged evidence: Ellis v Wallsend District Hospital (1989) 17 NSWLR 553 at 586-8. See also Caldwell v J A Neilson Investments Pty Ltd (2007) 69 NSWLR 120 at [96]; Masterton Homes Pty Ltd v Palm Assets Pty Ltd [2009] NSWCA 234 at [105]; Zong v Lin [2022] NSWCA 136 at [53]. Mr Morris submitted that his Honour’s dispositive reasoning therefore proceeded on the basis of an incorrect understanding of the law. This amounted to a material error of law that justified allowing the appeal and remitting the matter to the Local Court.
Mr Morris then submitted that the rule in Browne v Dunn did not apply in any event in a way that required Mr Bryce to cross-examine Mr Goggin about the January 2024 conversation. Mr Goggin alleged that that conversation was the foundation for the contract between him and Mr Bryce in his personal capacity. Mr Bryce denied Mr Goggin’s version of that conversation and instead provided a competing account which he verified on oath. In those circumstances, Mr Goggin would have been well aware that the terms of that conversation were disputed and would have been able to prepare his statement in light of that knowledge. No unfairness arose. Mr Goggin had sufficient notice that his account of the conversation was disputed so that there was no requirement for him to be cross-examined about it: Flower & Hart v White Industries (Qld) Pty Ltd (1999) 87 FCR 134 at [51]; West v Mead [2003] NSWSC 161 at [94]-[99]; Masterton Homes at [105]; Zong v Lin at [49]-[52].
Mr Morris also submitted that even if the rule in Browne v Dunn did apply, the manner in which it was treated by his Honour denied Mr Bryce procedural fairness. That was said to be because, if his Honour considered the rule applied, he should have explained it to Mr Bryce and its significance at the outset, or at least before Mr Goggin’s cross-examination concluded. Additionally, his Honour could have recalled Mr Goggin for further cross-examination. These have been regarded as available and appropriate steps to take even when a party is represented by counsel: Seymour v Australian Broadcasting Commission (1977) 19 NSWLR 219 at 236-7; Payless Superbarn (NSW) Pty Ltd v O’Gara (1990) 19 NSWLR 551 at 555-6; R v Birks (1990) 19 NSWLR 677 at 688-9; MWJ v The Queen (2005) 80 ALJR 329 at [40].
Mr Morris emphasised that, having regard to the fact that Mr Bryce was self‑represented, and it became clear that he might fail to comply with the rule, procedural fairness required his Honour to alert Mr Bryce to the existence of the rule, the potential consequences of that failure, and to give him the opportunity to remedy it, either immediately during the cross-examination, or by recalling Mr Goggin at a later point in the hearing. To do otherwise gave rise to the risk that the proceedings might be determined on the basis of a failure to comply with a substantive legal rule of which Mr Bryce was unaware and which could easily have been remedied. Mr Morris contended that his Honour’s failure to do so has resulted in an outcome that cannot be procedurally fair: Hamod v New South Wales [2011] NSWCA 375 at [309]-[316]; Bauskis v Liew [2013] NSWCA 297 at [66]-[70]; Mohareb v Local Court of New South Wales [2024] NSWCA 235 at [37]. See also Eastman v The Queen (1997) 76 FCR 9 at 88-9 and Zhang v Zhang [2022] NSWSC 924 at [182(15)]-[182(19)].
Mr Southwick of counsel, who appeared for Mr Goggin, submitted that the quoted passage from his Honour’s judgment was “the only finding [he] could make in the circumstances, there being no competing explanation of the cash payment”. Mr Southwick also somewhat curiously proffered the unarguable proposition that the Court may accept unchallenged evidence. It was Mr Southwick’s contention that the learned judge was not even dealing with the rule in Browne v Dunn in the course of the remarks in question.
With respect to Mr Southwick, his submissions do not seem to me to engage with Mr Morris’s case that his Honour was clearly referencing the rule in Browne v Dunn and that he was expressing the view that he was in effect bound to accept Mr Goggin’s unchallenged evidence, not merely that he was entitled to do so. It is particularly troubling in my view that his Honour’s reason for accepting Mr Goggin’s evidence is said to be “because it was not challenged”. His Honour also emphasised later in his judgment that “what Mr Goggin has given evidence about and he was not challenged on was that there was a conversation where he could save about $18,500 if he paid the plasterers cash”. It would have been entirely proper for his Honour to have prayed in aid as an additional reason for accepting Mr Goggin’s evidence the fact that Mr Bryce did not cross-examine him on the contested version of the important conversation as part of a balancing exercise in assessing who to believe or who to accept. However, his Honour did not engage in any such exercise. His judgment contains no comparative assessment of the competing evidence of the protagonists about whose version he preferred or why. Indeed, his Honour’s singular reliance upon Mr Bryce’s failure to cross-examine or challenge Mr Goggin as the reason to accept his version (“because it was not challenged”) would appear inadvertently or otherwise to have foreclosed the need in terms to assess or consider Mr Bryce’s own evidence on the point. It is sufficient in this respect to observe that his Honour does not say, as he should have said, that he prefers the version given by Mr Goggin and why or that he rejects the version given by Mr Bryce and why.
Mr Bryce also submitted that the learned judge erred in failing to provide adequate reasons for his finding that Mr Bryce entered into a binding legal agreement with Mr Goggin in his personal capacity. A failure to provide adequate reasons can raise a “question of law” for the purposes of s 39(1) of the Local Court Act 2007: Hadid v Redpath [2001] NSWCA 416 at [53]; Madden’s Stable Bedding Pty Ltd v Reid [2014] NSWSC 554 at [13]-[18]; Landbridge Transport Pty Ltd v Buckley [2014] NSWSC 1379 at [37]-[45].
Mr Southwick maintained that there was such a binding legal agreement, based on the January 2024 conversation. His Honour’s finding to this effect was based on his acceptance of Mr Goggin’s account of that conversation over Mr Bryce’s account. However, his Honour’s reasons do not explain why he preferred Mr Goggin’s account and do not consider Mr Bryce’s account at all, and thus leaves undetermined the central factual dispute at the hearing. The reasons of Bellew J in Landbridge at [39] are apt:
“Further, and leaving aside the terms of that finding, I am left to conclude that the Magistrate rejected the evidence given by Stinson. However, there is no exposition of the reasoning process which led the Magistrate to make that determination. Indeed, there is not the slightest explanation of why Stinson’s evidence was apparently rejected. As I have already noted, the reasoning of a trial judge on a point which is critical to the contest between the parties must be exposed. The apparent preference of Buckley’s evidence over that of Stinson was critical to the contest in the present case. The Magistrate’s failure to set out the reasons for that apparent preference renders his reasons inadequate.”
In my opinion, his Honour erred in law in a number or respects. He clearly expressed the view that Mr Bryce must fail in his defence of the claim because he failed to challenge Mr Goggin’s evidence on the critical conversation. That was plainly wrong. I do not accept the contrary submission that his Honour’s words are susceptible of a more benign interpretation.
Secondly, his Honour failed to give reasons, or adequate reasons, for his preference of Mr Goggin’s version over Mr Bryce’s version, or on another view, he failed entirely to express such a preference. A judgment for Mr Goggin on the claim does not standing alone expose a process of reasoning of how or why one of two competing and irreconcilable accounts should prevail. Mr Bryce would in my view have been entitled to wonder, when quietly reading the judgment, what if anything his Honour actually thought about what Mr Bryce had had to say concerning the basis for the cash transaction.
I am however not convinced that Mr Bryce was denied procedural fairness. In this respect I note what was said by Gleeson JA in Bauskis at [69]-[70] as follows:
“Thirdly, the duty of a trial judge to assist an unrepresented litigant does not extend to advising the litigant as to how his or her rights should be exercised. That is, it is not the function of the court to give judicial advice to, or conduct the case on behalf of, the unrepresented litigant: see Bhagwanani v Martin [1999] SASC 406; (1999) 2004 LSJS 449; Clark v State of New South Wales (No 2) [2006] NSWSC 914.
Fourthly, the trial judge must remain at all times the impartial adjudicator of the matter, measured against the touchstone of fairness. In this regard, an unrepresented party is as much subject to the rules as any other litigant: Rajski v Scitec Corporation Pty Ltd (Court of Appeal, 16 June 1986, unreported) per Samuels JA at 14.”
His Honour went to some lengths at the start of the hearing to draw a number of important matters to Mr Bryce’s attention. I accept that Mr Bryce was unrepresented but there is a fine line between the robust prosecution of adversary litigation on the one hand and the suggestion that his Honour should have done more to assist Mr Bryce with that process on the other hand. I appreciate the force of the contention that Mr Bryce was defeated by the conclusion that his failure to cross-examine was determinative, when a decision in that form could never have been anticipated and when he was never given the chance to respond to it. However, as I have otherwise formed the view that his Honour’s conclusion was an error of law, the procedural fairness issue lacks force.
It is in my opinion unnecessary in these circumstances to deal with the remaining grounds of appeal. Having regard to the fact that the matter will have to be remitted to the Local Court, it is preferable that I do not express views about the dispute that are wider than necessary to dispose of the matter in this Court.
In these circumstances, I will make the following orders:
Extend until 19 January 2026 the time for filing the summons.
To the extent necessary, grant leave to appeal from the whole of the decision below.
Allow the appeal and set aside the judgment of the Court below.
Remit the proceedings to the Local Court of New South Wales to be dealt with according to law.
Order that the cost of the proceedings in this Court abide the result of the rehearing.
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Bryce
Goggin
(2007) 69 NSWLR 120
(1997) 76 FCR 9
(1989) 17 NSWLR 553
(1999) 87 FCR 134
(2005) 80 ALJR 329
(1990) 19 NSWLR 551
(1990) 19 NSWLR 677
(1977) 19 NSWLR 219