Nuclear Utility Technology & Environmental Corporation Inc v Australian Broadcasting Corporation; on the application of Bayliss v Australian Broadcasting Corporation
[2009] NSWSC 78
At a glance
Source factsCourt
Supreme Court of NSW
Decision date
2009-02-26
Before
McCallum J, Mr J, Callum J
Source
Original judgment source is linked above.
Judgment (28 paragraphs)
Background 7 It is appropriate to record the procedural context in which the present issues arise. The matters complained of were broadcast on 21 and 22 March 2005. The proceedings were commenced on 17 March 2006. A trial pursuant to s 7A of the Defamation Act 1974 commenced with a jury on 24 October 2007. That trial was aborted due to confusion as to the identity and status of the corporate plaintiff arising from statements made to the Court by counsel for the plaintiffs, Mr Dibb. 8 The doubt regarding Nu-Tec's corporate status prompted the ABC to file a notice of motion in Court on 24 October 2007 (the ABC's first motion) seeking separate trial of the question of Nu-Tec's standing to maintain the proceedings. The motion sought an order that the proceedings brought by Nu-Tec be dismissed and an order that the ABC's costs of the proceedings brought by Nu-Tec be paid by Mr Bayliss on an indemnity basis. The basis for seeking those costs against Mr Bayliss was that he had no retainer from Nu-Tec (since it had no legal power to commence and maintain the proceedings). 9 The plaintiffs were not ready to meet those issues. Mr Dibb sought time to obtain instructions and investigate whether the Delaware corporation did indeed have power or standing to bring the proceedings. The jury was discharged and the hearing vacated. 10 On 18 March 2008, the ABC filed a notice of motion seeking orders that the plaintiffs and Mr Bayliss pay its costs thrown away by reason of the vacation of the s 7A trial, payable forthwith and, alternatively, an order that the plaintiffs pay those costs and that Mr Bayliss indemnify the ABC in respect of the payment of those costs. 11 The separate trial of the question whether Nu-Tec had standing to maintain the proceedings came before me for hearing on 28 April 2008. The ABC argued that, by operation of Delaware law, Nu-Tec's charter became void on 1 March 2005 (before publication of the matters complained of) for non-payment of franchise taxes. The ABC contended that, as a result, all powers conferred by law on the company were inoperative and that accordingly it had no power to sue. 12 At the outset of that hearing, Mr Dibb sought an adjournment on the basis that Mr Bayliss had been hampered in his preparation for the hearing by the existence of the allegations that he may be personally liable for costs. Mr Bayliss was separately represented on that occasion and did not join in the application. I refused to grant the adjournment. Mr Curtin, who appeared for Mr Bayliss, then made an application under r 7.29 of the Uniform Civil Procedure Rules for an order either dispensing with the obligation to serve notice on the plaintiffs of his intention to file a notice of ceasing to act, or abridging the time for service of that notice. I refused that application. 13 Mr Curtin also filed a notice of motion for orders that the ABC's motion seeking the costs of the aborted trial from Mr Bayliss be struck out and that the ABC be permanently restrained from seeking the orders sought or its costs referred to in that motion. The motion also sought an order that the ABC be permanently restrained from seeking the costs of the proceedings commenced at the suit of Nu-Tec. Mr Curtin did not contend, however, that I should not proceed to determine the question of Nu-Tec's power to sue. 14 On 1 May 2008, I held in favour of the ABC on the question of Nu-Tec's standing and dismissed the proceedings brought by it: Nuclear Utility Technology & Environmental Corporation Inc v Australian Broadcasting Corporation [2008] NSWSC 841.