[2025] WASCA 125
General information, not legal advice.
Court of Appeal (WA)
2025-08-22
Vaughan JA
Original judgment source is linked above.
[Mr Lee] would have been able to increase sales of Schedule 2 Products from 1 April 2010, and would have derived additional profits during the period from 1 April 2010 to 31 December 2011. (SOC par 97(d)(i))
which is a substantive claim for declarations and damages, I will afford the parties a further opportunity to make submissions as to whether that action should be dismissed, or merely stayed. In addition to the estoppel concern noted above, a further relevant consideration to which regard should be had in this respect is the degree of prejudice to the defendants of simply allowing the action to be stayed. Wheeler J noted this consideration in Temsign Pty Ltd v Biscen Pty Ltd (1998) 20 WAR 47 and, on the facts of that case, considered it appropriate to seek further submissions from the parties as to whether an order for dismissal should be made. [81] (citations omitted)
The primary judge's reasons in Kingsfield v RIA 2025
Disposition - appeal CACV 35 of 2025 The nature of the hearing
(f) to strike out any ground of appeal that -
(i) does not have a reasonable prospect of succeeding or does not comply with these rules or any order made under them;
(g) to dismiss the appeal if:
(i) none of the grounds of appeal has a reasonable prospect of succeeding[.]
Grounds B.1 to B.3 - the remaining grounds as to the order dismissing the application for recusal
(a) The primary judge's statement that '[a]s Mr Lee is a legal practitioner, I infer he would be well aware of the correct approach to follow in order to seek an adjournment and the need to properly justify such a request' [10]. (We observe that this passage is reproduced in Kingsfield v RIA 2025 [100].)
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> (b) The primary judge's statement that 'Mr Lee regards an adjournment of these matters as available when necessary to suit his circumstances' [28].
There are, however, some other aspects of the apprehension of bias principle which should be recognised. Deciding whether a judicial officer (or juror) might not bring an impartial mind to the resolution of a question that has not been determined requires no prediction about how the judge or juror will in fact approach the matter. The question is one of possibility (real and not remote), not probability. Similarly, if the matter has already been decided, the test is one which requires no conclusion about what factors actually influenced the outcome. No attempt need be made to inquire into the actual thought processes of the judge or juror [7]. (emphasis added)
Grounds A.1 to A.3 - the remaining grounds as to the orders for discontinuance and dismissal of the action
Mr Lee, so it seems to me what the State and the other parties are presenting is an application with two hemispheres. The first, perhaps logically, concerns what I should do in light of the decision I published last year [ie Lee v SOWA [No 2] (Stay Decision)] where I held the matter over and didn't dismiss it by reason of the bankruptcy issues, and allied to that is the fact that Kingsfield is in liquidation. The second and, perhaps more factually complicated matter, the second hemisphere, is the more traditional application to dismiss for want of prosecution ... I think that's the battleground, if I can just summarise it in general terms. So, over to you to make submissions as you see fit.[31]
Grounds D.1 to D.3, D.6 - the remaining grounds as to the costs orders
Please note that should your client [ie Mr Lee] seek to take such steps outlined in his email ... the defendants put your client on notice that they will seek their costs of any such application payable on an indemnity basis. (par 10)
...
The defendants shall rely on this correspondence on any question of costs. (par 15).
It ought to have been apparent to Mr Lee and his legal advisors, in my respectful view, in March 2023, that the application [ie for leave to proceed with the primary proceedings notwithstanding Mr Lee's bankruptcy] would fail. In any event, it would be apparent from my decision on 5 July [2023] [ie Lee v SOWA [No 2] (Stay Decision)] that the application had failed.
And then on 24 November 2023, when the Court of Appeal dismissed the appeal [ie Lee v SoWA - 1st Stay Appeal], it was undeniably apparent to Mr Lee that the application had no merit. There was then an application of a special leave to appeal to the High Court, which was not determined until 11 April 2024, but I don't think I need to dwell too much on the time-lapse between November [2023] and April [2024] in that regard, given it is well understood that applications for special leave are rarely granted.
Putting all that together, it seems to me that on and from 27 November 2023, when the Court of Appeal delivered its orders, that it was objectively apparent to Mr Lee that the attempt by Mr Lee to engage the exception under the Bankruptcy Act had no merit ...
... proceeding further from that juncture in those circumstances is more than capable of being described as unreasonable conduct.
But that is not a matter to be assessed on its own. It must be assessed together with the fact that a letter had been sent, putting the parties on notice on 22 March 2023 of the prospect of indemnity costs being sought. And I think it's always important in matters such as this that there be some evidence that a party has put its counter-party on notice of the potential for such an application. It seems to me then, while I can see merit in the date of 21 March 2023 - or 22 March, rather, 2023, being a basis upon which the characterisation of conduct from reasonable to unreasonable might be drawn, it seems to me a safer basis to draw that position from 27 November 2023.
In my view, there is a proper basis in this case to impose an award of indemnity costs for that reason - or for those reasons ...
...
Ultimately, it seems to me that there is a basis in the present circumstance for the grant of an indemnity costs order as an appropriate sanction marking the disapproval of unreasonable conduct in the circumstances. That unreasonable conduct is identified in my reasons, but is identified, I think, quite crisply from the continuation of this proceeding post the decision of the Court of Appeal on 27 November 2023.[42]
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Referring to Kingsfield Holdings Pty Ltd (in liq) v Rottnest Island Authority [2025] WASC 121 (Kingsfield v RIA 2025).
[2] There is earlier litigation by Mr Lee not included in this list. It is summarised in Kingsfield Holdings Pty Ltd v Sullivan Commercial Pty Ltd [2021] WASC 289 [28], [30] - [32]. We have not included that litigation as it appears to be a precursor to some of the other litigation we have listed.
[3] Kingsfield Holdings Pty Ltd v Rutherford [2016] WASC 117.
[4] Lee v Department of Health [2020] WASC 103.
[5] Lee v Department of Justice [2020] WASC 105.
[6] Lee v Department of Justice [2021] WASC 119.
[7] Lee v Department of Justice [2021] WASCA 152.
[8] Kingsfield Holdings Pty Ltd v Lawfirst Pty Ltd [2022] WASC 161.
[9] Lee v Lawfirst Pty Ltd [2023] WASCA 59.
[10] Lee v Lawfirst Pty Ltd [No 2] [2023] WASCA 166.
[11] Referring to Lee v The State of Western Australia [2023] WASCA 165 (Lee v SoWA - 1st Stay Appeal) [28] - [31].
[12] Referring to Lee v The State of Western Australia [No 2] [2023] WASC 247 (Lee v SOWA [No 2] (Stay Decision)) [14], [55] - [66].
[13] Lee v Law Complaints Officer as the delegate of the Legal Profession Complaints Committee [2023] WASCA 60.
[14] Lee v The State of Western Australia [2023] WASCA 97.
[15] Referring to Lee v Brandis [2024] WASCA 150 (Lee v Brandis - 2nd Stay Appeal).
[16] Lee v Chang [2025] WASCA 54 [3].
[17] Lee v The State of Western Australia [2023] WASC 182.
[18] Lee v Kingsfield Holdings Pty Ltd & Ors [2024] HCASL 79 [2].
[19] Lee v The State of Western Australia [2024] HCASL 80 [2].
[20] Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52 [65] - [67].
[21] In de Braekt v Legal Profession Complaints Committee [2016] WASCA 220 [47].
[22] Samuels v The State of Western Australia [2005] WASCA 193; (2005) 30 WAR 473 [56].
[23] Farrant v Westpac Banking Corporation [2024] WASCA 157 [19].
[24] Zamora v OCS Services Pty Ltd [2025] WASCA 117 [95] - [101].
[25] Concrete Pty Ltd v Parramatta Design & Developments Pty Ltd [2006] HCA 55; (2006) 229 CLR 577 [2] - [3], [117].
[26] Referring to Ebner v Official Trustee in Bankruptcy [2000] HCA 63; (2000) 205 CLR 337.
[27] Ogbonna v CTI Logistics Ltd [2021] WASCA 25 [25] - [27].
[28] G v W [2021] WASCA 180 [62] - [64].
[29] Zaghoul v Bradley Bayly Holdings Pty Ltd [2025] WASCA 81 [80].
[30] Armet v Stephen Browne [2024] WASCA 44 [55] - [56].
[44] ts 143. See also Kingsfield v RIA 2025 fn 10, fn 20.
[45] Fitzroy River LLC v Tucker [2025] WASCA 118 [114].
[46] NRW Contracting Pty Ltd v Cliffs Asia Pacific Iron Ore Pty Ltd [2020] WASCA 107 [117] - [118].
[47] Clough Ltd v Forge Group Ltd (in liq) (receivers and managers appointed) [2022] WASCA 179 [18] ‑ [23].
[48] Mineralogy Pty Ltd v CITIC Ltd [2024] WASCA 168 [56] - [63].
(2007) 234 CLR 52
(2000) 205 CLR 337
(1998) 20 WAR 47
(2006) 229 CLR 577
(2005) 30 WAR 473