decision."
81. I would ask, with great respect, why not? Why should not the plaintiff
be entitled to judgment as soon as possible
if there really is no defence?
Why should he not be entitled to save himself, and for that matter, the
defence, further costs and
delay when the issue can be decided, albeit after
somewhat extensive argument? I do not think the mere complexity or apparent
complexity
of the argument should automatically shut out the plaintiff from
immediate relief. He faces the sanction of costs if he is unsuccessful;
but
if, ultimately, he shows clearly that there is no defence there is every
sensible commercial reason why the case should go no
further. Again with
great respect to Parker L.J., his remarks may well serve to encourage
ingenious counsel to adopt what one would
have to call a "cuttlefish" defence.
That sagacious mollusk endeavours to confuse and defeat its enemies by pouring
forth clouds
of inky blackness when attacked. So, resort to a welter of
authorities and referral to esoteric points of law might be employed
to
persuade an overworked judge that the answer is too hard to find on summary
proceedings; and the defence thereby gain a much desired
breathing space; at
the expense of the plaintiff.
82. These observations should not, of course, override the basic principle
that
where there is "a real question to be tried" the defendant should be
given leave to defend, Adatia Pty Ltd v Nazbit Pty Ltd (unrep.
30/6/89 - per
Angel J.).
83. Other expressions have been used, e.g., if there is a "triable issue" -
see Jacobs v Booth's Distillery
(1901) 85 LT 262, or an "arguably good
defence", Clarke v The Union Bank of Australia Ltd [1917] HCA 19; (1917) 23 CLR 5; or even
that the defendant "may be able to establish a defence", Ray v Barker (1879) 4
Ex D 279 at 283. These and other authorities are collected in Australian Can
Co Pty Ltd v Levin and Co Pty Ltd [1947] VicLawRp 47; (1947) VLR 332 at 334; but it is worthy of
note that in that case their Honours Herring C.J. and Lowe J. say at 334-5:-
"But in whatever language
the discrimen
is expressed to determine in what cases liberty to the
plaintiff to sign judgment or liberty to the defendant
to defend should be given, the length at which or the
detail in which or the vigour with which counsel has
argued the matter
cannot be the determining factor. So
to hold would be to allow the pertinacity or ingenuity
of counsel or even the tolerance
of the judge to
obscure the real requirement of the rule."
84. No doubt it becomes a matter of degree and no doubt there are
limits
beyond which a judge should not go on summary proceedings if the arguments
raised appear properly relevant but complex. In
Theseus Exploration N.L. v
Foyster [1972] HCA 41; (1972) 126 CLR 507 the High Court was not prepared to say that a judge
had erred in refusing to enter judgment for the plaintiff on the basis that
the
extent and complexity of the matters of law and argument warranted a full
hearing. Nevertheless, Barwick C.J. (at 514) was of the
view that:-
"Equally however I would not have
thought him in error if he had granted the appellant's
application for summary
judgment. The case was one
which, in my opinion, could have been disposed of in
argument upon the application."
In that case,
however, it is noteworthy that the High Court itself, having
heard full argument, decided that the defence raised must fail. Therefore
it
took the view that, if the action were sent for trial, the judge would be
bound to apply the High Court's statement of the law,
and therefore the appeal
should be allowed. Logically, as Gibbs J. pointed out, the appeal should have
been dismissed. But, as he
remarked at 515 "Justice therefore requires us to
take the anomalous course of allowing an appeal from a judgment which was
correct."
85. While that case, therefore, illustrates the wide discretion allowed to
judges in determining whether a case is so complex that
it should not be
determined summarily (which no doubt is another way of saying that the
defendant "may be able to establish a defence"),
I do not think that it
suggests that a judge should take that course unless he first explores whether
appearances are deceptive.
86. Mr Nosworthy has argued that even the very broad tests in favour of the
defendant adopted in the Australian Can case (supra)
are now even broader
under the new rules. The original rule in the Northern Territory was Ord. 15
rule 1(2) ... "unless the defendant
satisfied (the judge) that he has a good
defence to the action on the merits, or discloses such facts as are deemed
sufficient to
entitle him to defend the action generally ..."
87. The present Rule 22.06 says -
"... unless the
defendant satisfies
the court that in respect of that
claim or part a question ought to be tried or that
there ought for some other reason be a
trial of that
claim or part."
88. I would not agree with Mr Nosworthy on that submission and I am content
to adopt what the learned
editor of Williams Supreme Court Practice says at
3374:-
"The words 'a question which ought to
be tried' ... correspond to
the words 'a good defence
to the action on the merits' of the former rules. The
change in language is not intended to establish
a new
and different test for leave to defend, but to express
more accurately the test which had been developed from
the
original rule through court decision."
He refers then to Chasfield Pty Ltd v Taranto (1988) reported in the Practice
Decisions at
p 30, 1113, where Murphy J., speaking of the rule says:-
"It is, I think, reasonable to look to
see how those new words in
our Rules have been
understood in England, for no argument has been
addressed to me to suggest that the judges of this
court,
in adopting the words in the English rule,
intended them to mean something different."
89. In any event I would think that the
test put forward by the Privy Council
in Jones v Stone (1874) AC 122 could hardly be more generous to the defendant
than any of the
other tests propounded. There Lord Halsbury says at 124:-
"The proceeding established by that
Order is a peculiar proceeding
intended only to apply
to cases where there can be no reasonable doubt that a
plaintiff is entitled to judgment, and where,
therefore, it is inexpedient to allow a defendant to
defend for mere purposes of delay."
This was the test adopted by the High
Court in Clarke v The Union Bank of
Australia Ltd [1917] HCA 19; (1917) 23 CLR 5.
90. In my view, applying that most generous of the formulations of the
principle there is still, to my mind, no reasonable doubt
that the plaintiff
here is entitled to judgment. I think that achieves the object of the rule in
this sense; that, while it is obvious
that the question of quantum of damages
will take considerably longer than the determination on liability, that would
be the case
in any event and the parties are at least spared the time and
expense of arguing liability further. Furthermore, the plaintiff is
clearly
entitled to judgment and should not have to wait further proceedings and
entail further costs on that issue. It is to my
mind a plain advantage for
all parties that they should concentrate on real issues; although, if the
object of the defendant and
Avery was delay, they may not see this advantage
for the present.
91. I draw attention to two matters which I think in the heat
of argument
have not been addressed to completion. The first is the question of the
plaintiff's claim against the defendant in tort.
Mr Riley was clear enough
that he was not in this application relying on that claim. I have however not
been able to find anything
in the transcript which could be construed as a
complete abandonment for all purposes and it may be that Mr Riley did not
propose
to go so far. Mr Riley used words such as "We're not proceeding with
that aspect of the matter: (i.e. duty of care), or, in relation
to paragraph 7
of the Statement of Claim, "(That) is an allegation of negligence which is not
being relied upon today ..." Mr Nosworthy
does not appear to have pressed Mr
Riley to anything more positive. I doubt if Mr Riley really proposes to come
back to this claim
in some other way in these proceedings and I doubt if Mr
Nosworthy would seriously expect him to, but I may be wrong in that and
I
should not anticipate what was not argued. I think the question can best be
dealt with by giving liberty to apply so that if Mr
Nosworthy wishes to seek a
more conclusive position for his client, or Mr Riley wishes to argue for some
residual right to resort
to this part of the claim, they may raise the
question if either consider it remains as a live issue.
92. So far as Rule 22.02(1)
is concerned, I have no difficulty in merely
ruling that the defendant has no defence to that part of the claim which
relates to
breach of contract; so the argument on tort remains at least
technically alive; although I would prefer to regard it as rather obviously
in
extremis and waiting for such obsequies as may be required for decent burial.
93. The other question relates to the Setoff and
Counterclaim. On the view I
have taken, the amount of the claim sufficiently exceeds that of the
Counterclaim to justify judgment
for the plaintiff. Indeed I think it fair to
say that the present position seems to be that the defendant has already been
given
credit for the Counterclaim and cannot claim twice. However, I do not
think the terms of Rule 22.02(1) permit me to dismiss the
Counterclaim. Under
the Rule the court can only act where the defendant has no defence to the
whole or part of the claim. Insofar
as it relies upon setoff as a defence I
rule that it has no defence on that basis.
94. A setoff is a defence but a counterclaim
is not. I think I am limited to
entering judgment for the claim. I have not been asked to proceed under
22.06(1)(d) to dispose of
the issue of counterclaim. I think I must leave the
Counterclaim extant, although I am bound to say that it seems to me on the
present
material, somewhat illusory. However since the Counterclaim must go
forward at this stage, I acknowledge that there can be no final
decision on
the issue and that if and when it falls to be determined the facts and
circumstances may appear different or the arguments
be seen in a different
light to the present.
95. The third party proceedings remain on foot. But they are also the
subject of a
separate action between the defendant and the third party (No.
201 of 1989). I will give liberty to apply on the question whether,
in view
of the orders I make here, the third party proceedings be discontinued in
these proceedings, or consolidated with the other
proceedings. But if no
application is made the third party proceedings should continue in these
proceedings.
96. I make the following
findings, declarations and orders:
1. Leave to the defendant to file
and serve Amended Defence and Counterclaim.
2.
Pursuant to R.22.10 find and
declare that
(a) the defendant is liable in damages to the
plaintiff for breach
of contract as alleged in
paragraphs 3, 4 and 5 of the Statement of Claim.
(b) the defendant has no
defence to the
action insofar as breach of contract is
alleged.
(c) the amount of damages
for breach of contract is not established
to the
satisfaction of the Court.
(d) if the amount
of damages were established the Court would give
judgment
on the claim for breach of contract.
3. Direct that the question of
the amount of damages for breach of contract be