REASONS FOR JUDGMENT
1 HIS HONOUR: On 3 April 2008, the Court, as presently constituted, dismissed the plaintiff's motion to set aside default judgment of 5 February 2007. The Court dissolved all stays on the entry and execution of the default judgment, together with the stay on the second defendant's judgment on the cross-claim.
2 Directions made on 26 October 2007 had specially fixed the plaintiff's motion for hearing over two days commencing 3 April 2008. Those days were chosen to meet the convenience of the plaintiff (Mr Murtough). It is necessary to set out a selective history of the litigation and I attach to these reasons a chronology prepared on behalf of the first defendant (Mr Betham) upon which I will expand and some aspects of which I will correct.
History of Litigation
3 The plaintiff was a legal practitioner, formerly practising in both New South Wales and England. He is a resident of New South Wales. On 21 February 2002, the plaintiff issued proceedings in this Court against two defendants, one resident of the United Kingdom and one resident of New South Wales. It is alleged that the law of England and Wales is applicable to the proceedings.
4 After some early skirmishes, during which Mr Murtough obtained default judgment and all parties filed amended pleadings, the second defendant (Mr Ram) moved for summary dismissal of the proceedings. Mr Murtough, in the amended statement of claim, claims three causes of action: malicious falsehood; collateral abuse of process by the commencement of County Court proceedings in England; and a further count of collateral abuse of process by the making of a complaint about the alleged professional misconduct of Mr Murtough to the Office for the Supervision of Solicitors of the Law Society of England and Wales. At the hearing of that motion, Mr Ram conceded that the action on the third cause could not be the subject of summary dismissal.
5 On 18 August 2004, Buddin J dismissed Mr Ram's motion for summary dismissal of the proceedings: see Christopher George Murtough v Betham and Anor [2004] NSWSC 753.
6 On 10 September 2004, the Court ordered Mr Murtough to give discovery by serving paginated bundles of certain documents by 8 October 2004. The Court also ordered service of expert reports by 5 November 2004 and Part 33 Particulars by 1 October 2004.
7 Mr Murtough did not comply with those orders. The matter of discovery (and other incidental orders) returned to this Court on 10 September 2004, 1 October 2004, 8 October 2004, 11 October 2004, 18 October 2004, 21 October 2004, 8 November 2004, 11 November 2004, 15 November 2004, 19 November 2004, 23 November 2004, 2 December 2004, 4 March 2005, 23 May 2005, 27 May 2005, 29 July 2005, 24 August 2005, 26 August 2005, 5 December 2005 and 9 December 2005. At the hearing dates on 2 December 2004, 27 May 2005 and 26 August 2005, the same or similar orders were made as were originally made on 10 September 2004, summarised at [6] above.
8 On 9 December 2005, Mr Ram was given leave to file and serve, by 9 December 2005, a notice of motion for default judgment. The notice was filed and referred to me for hearing on 14 December 2005.
9 On 14 December 2005, the then legal representative of Mr Murtough informed the Court of difficulties in obtaining instructions and proceeding with the work necessary to comply with the Court's previous directions. On the application of Mr Murtough's representative, the Court adjourned until 17 February 2006 the hearing of the motions for judgment for want of prosecution, notice of which had been given by both Mr Betham and Mr Ram on or about 8 and 9 December 2005.
10 On 14 December 2005, the Court also directed Mr Murtough to file and serve, by 30 January 2006, any affidavit or other evidence upon which he relied. These orders were made on the application of Mr Murtough.
11 On 17 February 2006, when the matter was heard, Mr Murtough's legal representative once more sought an adjournment: see Murtough v Betham (Supreme Court of New South Wales, Rothman J, 17 February 2006, unreported). Mr Murtough had filed no material in relation to the motions by 30 January 2006 or at all. At the hearing, Mr Murtough's representative relied on two medical opinions of which no notice had been given. The opinions referred to Mr Murtough's cognitive impairment, his inability "to make important decisions" and his depression, and expressed the view that, at least since 1 October 1997, he had been under a "legal disability" and "was never medically fit to represent himself … without a guardian [or] tutor": ibid, p 3.
12 The Court adjourned the motion, made orally on behalf of Mr Murtough, for the appointment of a tutor and ordered the filing and service of updated medical opinions. The Court stood the matter over for argument, if any, on the issue of the tutor and the appointment, by the Court if necessary, of an appropriate expert to give evidence on the issue.
13 Subsequently, the motion was adjourned on a number of occasions, each time on the application of Mr Murtough's representative. The motions were listed before me to be heard on 26 April 2006. On that date, a further adjournment was granted on strict conditions, one of which related to the tutor proposed by Mr Murtough. Material before the Court established that the proposed tutor was a client (or former client) of Mr Murtough and had his own issues relating to capacity. Significant debate occurred on this issue. The Court adjourned the proceedings for some period in order to allow compliance by Mr Murtough with the Rules and in order to allow Mr Murtough to obtain material that would demonstrate the capacity of the proposed tutor, or, alternatively, to obtain the consent of another person to act in that capacity. On 26 April 2006, the proceedings were stood over until 10 July 2006.
14 On 10 July 2006, a different legal representative appeared for Mr Murtough and an application was reiterated for the appointment as tutor of the same person identified on the last occasion. The material required in support thereof had not been filed. The motion was adjourned until 14 August 2006. On that date, the defendants were permitted short service of subpoenas on the proposed tutor because the required documentation had still not been provided. The matter was stood over, once more, until 14 September 2006, at which time there was no appearance for Mr Murtough. As the matter had been listed for mention only (in order to obtain a date for hearing), it was fixed for hearing on 10 October 2006.
15 On 10 October 2006, Mr Murtough was once more represented. The proceedings were once more adjourned on the application of Mr Murtough. Liberty was given to file a notice of motion. There were further directions on 19 October 2006 and the matter was stood over to 6 November 2006. On 2 November 2006, at the request of Mr Murtough, the listing for 6 November was vacated and the matter listed for 17 November 2006.
16 On 17 November 2006, Mr Murtough once more appeared for himself. He submitted, contrary to earlier evidence, that he had the capacity to conduct the proceedings himself and sought an adjournment to deal with the defendants' motions. The adjournment was granted and strict orders were issued requiring Mr Murtough to file and serve, by 29 January 2007, a written submission dealing with his capacity and with want of prosecution and requiring, by 14 December 2006, Mr Murtough to file any further affidavit or motion seeking to "regularise" the proceedings. Mr Murtough sought and obtained extensions of time from 14 December 2006 to 21 December 2006.
17 Mr Murtough filed no submission, notice of motion or affidavit as directed. The motions were called for hearing at 10.00am on 5 February 2007 (in accordance with the directions of 17 November 2006) and there was no appearance for, or by, Mr Murtough. The Court had been hearing other matters prior thereto. The Court adjourned these proceedings after a few minutes, for a short time, and reconvened at 10.20am. At that time, by default, the court issued orders to the effect of those then sought in the defendants' motions.
18 At 10.30 am, on return to Chambers, the Associate first received emails from Mr Murtough sent to her between 9.00am and 10.00am, the last of which was sent at 9.53am. Those emails purported to contain a draft affidavit, a draft submission and a note that Mr Murtough will be attending court. At 10.40am, Mr Murtough arrived for the 10.00am hearing. The other parties were notified and the Court reconvened. The Court refused the application, made instanter, by Mr Murtough to set aside the default judgment and gave leave to file a notice of motion with affidavit by 20 February 2007. Other directions were made and entry and execution of the default judgment was stayed.
19 Notwithstanding non-compliance with the directions of 5 February 2007, the stay was continued on 26 March 2007. Self-executing orders were made by which the stay on entry and execution of judgment would lapse unless, by a certain time, Mr Murtough had complied with particular directions. The motion to set aside the default judgment was listed for hearing on 7 and 8 May 2007.
20 On 7 May 2007, Mr Murtough sought and obtained a further adjournment. The matter was listed for 20 July 2007, a date set to meet the convenience of Mr Murtough.
21 On 18 July 2007, the Court, at the request of Mr Murtough, vacated the hearing date. At a telephone directions hearing on 13 August 2007, the matter was set down for 26 October 2007.
22 On 26 October 2007, there was no appearance for Mr Murtough. A solicitor, purporting to act as amicus, informed the Court of certain matters and the proceedings were adjourned until 3 April 2008 for hearing. 4 April 2008 was also reserved. The Court issued, inter alia, the following direction:
"2. If the Plaintiff on the date to which this matter is stood over is not represented by a legal practitioner, I will require evidence from him and evidence from an appropriately qualified medical practitioner that he is capable of conducting these proceedings.