24 In Phornpisutikul v Mileto [2006] NSWSC 57, proceedings under the Family Provision Act 1982 (NSW) had been listed for hearing before McDougall J on 7 February 2005. That hearing was vacated because the plaintiff had sworn affidavits as late as 3 February 2005 with which the defendant was unable to deal. His Honour directed the plaintiff to file any further affidavit evidence by 24 March 2005. Thereafter, the plaintiff repeatedly failed to comply with directions given for the filing of her further evidence. The matter eventually came before Campbell J on 10 February 2006. In circumstances where a year had passed since the direction had first been made, and there had been repeated breaches, His Honour said (at [9]):
The substantive provisions of the Civil Procedure Act 2005 commenced on 15 August of 2005. That Act alters in significant ways the power of the Court to give directions concerning the conduct of proceedings, and in broad terms expects the Court to take a firmer hand in the preparation of matters than had previously been the case. Section 56 requires the overriding purpose of any decision made under the Act to be the just, quick and cheap resolution of the real issues in the proceedings. As well, though, s 57 allows the Court to have regard to not only the just determination of proceedings but also the efficient disposal of the business of the Court, the efficient use of judicial and administrative resources, timely disposal of the proceedings and all other proceedings in the Court at a cost affordable by the parties. Section 61(1) and (2) confers on the Court a wide power to give pre trial directions. Section 61(3) specifically provides that if a party to whom a direction has been given fails to comply with the direction the Court may, amongst other things, dismiss the proceedings. I would accept that the powers under s 61 should be exercised bearing in mind the principle that (to adopt the words used by s 62(4) in relation to directions as to the conduct of a hearing) each party is entitled to a fair hearing and must be given a reasonable opportunity to lead evidence, make submissions, present a case and, at a trial, to cross-examine witnesses. However, a reasonable opportunity does not mean multiple repeated opportunities. Litigants and the profession should not expect that failure to comply with pre trial directions will be accepted lightly by the Court.
There is some reluctance on the Court to dismiss a case when there has not been a hearing on merits. However, if a party, by repeated failures to comply with directions, demonstrates that she is not prepared to play her role in the expeditious advancing of the proceedings, it is that party's own conduct which has prevented a hearing taking place. The power to dismiss proceedings for failure to comply with directions is one which will be used in appropriate cases.
25 Although Mr Grieve QC emphasises his Honour's statement to the effect that a reasonable opportunity does not mean multiple repeated opportunities, that is redolent of the dissenting judgment of Cole JA in Cohen v McWilliam (1995) 38 NSWLR 476, 503, in which his Honour said that "a proper opportunity does not mean multiple opportunities"; the majority (Priestley and Sheller JJA), however, held that when considering an application for an adjournment to enable a new issue to be raised notwithstanding non-compliance with court rules, procedures and directions, the court must decide the application on its merits and that the primary emphasis was on the question whether there is an arguable case to be tried on the merits, although a number of other matters including court efficiency may be taken into account, but in a non-decisive way [482A, 491B]. The substance of what Campbell J said is that ordinarily the dictates of justice require that, despite procedural defaults, cases be heard and determined on their merits, although sustained, repeated or persistent default might result in a party being deprived of such a hearing. That is illustrated by the outcome: notwithstanding that in more than a year since McDougall J first made a direction for the plaintiff to file her affidavits she had not filed a single document, but influenced by the facts that the proceedings had been on foot since 2003, and that preparation of an affidavit was apparently well advanced, his Honour granted a final indulgence of a further month, on terms of a self-executing order for dismissal of the proceedings otherwise.
26 In Kane v Wyllie [2006] NSWSC 710, Gzell J said that in dealing with an application under s 61(3) for dismissal of proceedings for default in compliance with a direction, the court must strike a balance between the parties and decide whether or not on balance justice demands that an action should be dismissed [His Honour referred to Witten v Lombard Australia Ltd [1968] 2 NSWR 529, 534; Stollznow v Calvert [1980] 2 NSWLR 749, 751; and Micallef v ICI Australia Operations Pty Ltd [2001] NSWCA 274 [51]]. His Honour made a self-executing order for dismissal of the proceedings if the plaintiffs failed to serve a further amended statement of claim and file an application for leave to file it by the following day.
27 Gzell J repeated the observation about the requirement to strike such a balance in Reliance Financial Services Pty Ltd v Criniti [2006] NSWSC 715, in which the plaintiffs had failed on three occasions to comply with directions for service of their further evidence. Having regard to the inability of the plaintiffs' new solicitors to obtain the file from former solicitors, and difficulties associated with taking instructions from the plaintiffs' former director who was incarcerated, his Honour concluded that, on balance, justice demanded that the plaintiff not suffer its proceedings to be dismissed.
28 The ultimate aim of a court is the attainment of justice, and that aim is not surpassed by any principle of case management or efficiency in the procedures of the court. In particular, the achievement of efficiency in procedures, while a relevant consideration, is generally of less weight than the injustice of precluding the determination on the merits of a genuine issue between the parties [Queensland v J L Holdings Pty Ltd (1997) 189 CLR 146]. The Civil Procedure Act does not alter this. It continues to give primacy to the dictates of justice. The dictates of justice are determined by weighing the injustice of denying a party a hearing on the merits against the injustice of requiring the other to tolerate the first's procedural defaults. But while in evaluating what are the dictates of justice it is relevant to take into account such procedural defaults, it will only be in exceptional cases that the injustice they occasion to the other party is such as to justify the injustice of denying a hearing on the merits.