Factual background
7 A dispute arose between the second plaintiff, Hemalathasothy Ranjini Satchithanantham (who is the wife of the third plaintiff), and the defendant in respect of premises comprising the first floor, 53 Station Street, Wentworthville. The defendant was the owner of those premises and the second plaintiff was the lessee.
8 The defendant commenced proceedings on 8 February 2005 in the Bankstown Local Court against the second plaintiff claiming outstanding rent, outgoings and other monies on the basis that the second plaintiff was in breach of the lease. The second plaintiff filed a defence and brought a cross-claim against the defendant in the Local Court proceedings. On 15 September 2005 the Local Court proceedings were transferred to the ADT. On transfer to the ADT, the matter was given the number 055131.
9 On 31 August 2006 the ADT directed that the defendant file a further defence to the second plaintiff's cross-claim. The defendant was in breach of that order and the further defence was not filed until 17 January 2007. The defendant said that was its only default in complying with orders made by the ADT. The third plaintiff in his submissions disputed that this was so and submitted that the defendant was in default of many directions made by the Tribunal but did not provide any particulars of those other defaults.
10 On or about 26 February 2007 the second plaintiff served the defendant with an Application for Original Decision and an Application for Urgent Interim Order. Those documents were given a new file number in the ADT, 075034. They alleged that the defendant was in breach of numerous directions by the ADT and sought that the defendant's defence to the cross-claim in ADT proceedings 055131 be struck out and that judgment be entered in favour of the second plaintiff on her cross-claim for $303,015.66.
11 Not surprisingly, the defendant objected to the new proceedings and applied to the Tribunal to have them dismissed. An affidavit of Mr Edwards, who was then the solicitor for the defendant, sworn 23 May 2007 was relied upon in support of that application. The application came before Ms Higgins as a judicial member of the Tribunal on 24 May 2007. The third plaintiff appeared on behalf of the second plaintiff.
12 Ms Higgins dismissed ADT proceedings 075034 on the basis that they involved an amendment of the cross-claim which was already filed and formed part of ADT proceedings 055131. Because there might be matter on the second file which could be used in the first proceedings, Ms Higgins gave liberty for that material to be transferred to proceedings 055131.
13 The formal orders made by Ms Higgins were:
"The first order is that the application (075034) is dismissed on the basis that it is misconceived in that it does not raise any new claim that relates to the claim that is the cross-claim of the applicant in file no 055131.
2. The applicant is at liberty to file in proceedings 055131 annexure "A(1)" as part of its cross-claim."
14 The second plaintiff appealed to an Appeal Panel of the ADT. The appeal was given a new ADT number - 079043. That is the number referred to in the consent order and summons. The third plaintiff filed written submissions in support of the appeal and appeared on behalf of the second plaintiff before the Appeal Panel on 13 November 2007. The Appeal Panel comprised Deputy President Judge Chesterman, Judicial Member Mr Rickards and Non-judicial Member Dr Weule.
15 It is apparent from the transcript of the proceedings before the Appeal Panel in matter 079043 that Judge Chesterman carefully explained the nature of the proceedings and what it was that the second plaintiff needed to establish in order to succeed. Judge Chesterman noted that much of the written submissions were irrelevant to those issues. In his introductory remarks, Judge Chesterman said:
"It's an appeal against the decision by the Tribunal striking as we said striking out an application put on in this matter on the appellant on the ground that the application simply duplicated a cross-claim that was already before the Tribunal by virtue of being transferred from the Local Court.
The primary issue in the appeal is whether the Tribunal erred in making that decision and that by virtue of the duplication it was appropriate to strike out the application and, indeed, in effect, put to one side the Tribunal file that was connected with the application. As we see it, what needs to be considered in deciding whether that decision was correct is, whether it was correct of the Tribunal to find that all that was being achieved by the appellant in putting on the application in question was, at most, an amendment of the cross-claim that was already before the Tribunal. If the Tribunal was correct in making that ruling regarding the impact of the appellant's application, we do not see how it could possibly be said that the Tribunal erred in striking out the application.
If, on the other hand, there was, in some sense, a denial of the right of the appellant to bring more matters before the Tribunal that arose out of the cross-claim, because of the appellant not being permitted to continue with the application, well then there may be grounds for allowing the appeal. But something of that sort needs to be shown to us. Now Mr Satchi, as agent for the appellant, the onus lies on you to show to us, this morning, how the appellant, your wife's rights in this matter were, in any sense, prejudiced by virtue of the decision. That what was in issue, in the application by her that was struck out, differed materially not just in detail but differed materially from the issue raised in the cross-claim in the Local Court, as amended, within the limits allowed by normal procedures for amending claims.
A number of the other matters raised, I must say, on behalf of my colleagues as well as myself, a number of the matters in the documents lodged by you and indeed, to some extent in the Notice of Reply are not relevant to those very precise matters that are relevant in the appeal and I want to say that, at the outset to make it clear that this morning we are only going to look at the issues that arise in deciding whether that order made by the Tribunal was or was not correct in law. Now, following that introduction now, Mr Satchi, can I ask you to address us by which I mean tell us how within the material that you've lodged in the appeal or independently from that, you make the argument that the appellant's rights were prejudiced by the decision not to allow a separate application in file 075034. It's simple to say that the claims made in that file had already been sufficiently well covered, subject perhaps to some amendment along the way in the cross-claim lodged in the Local Court and transferred to this Tribunal in file 055131."
16 Despite this clear statement of issues and of the task before him, the third plaintiff steadfastly refused throughout the course of the proceedings before the Appeal Panel to deal with those matters.
17 The third plaintiff submitted that Ms Higgins should have struck out the defendant's defence to cross-claim in matter no 055131 because of the defendant's lateness in filing it. The Appeal Panel pointed out to him that a default of that kind was not sufficient to justify such a response and that such an application should have been brought in proceedings 055131 and not in separate and new proceedings.
18 Despite being asked on a number of occasions to point out what was materially different in the cross-claim brought in proceedings 075034 from the cross-claim in proceedings 055131, the third plaintiff failed to identify any difference. He did, however, repeatedly assert to the Appeal Panel that there was in fact such a difference. The third plaintiff was unable to point out how his wife had suffered any prejudice by having proceedings 075034 dismissed when the same issue raised in those proceedings was going to be litigated in proceedings 055131.
19 The Appeal Panel of the ADT delivered its decision on 18 December 2007. Having reviewed the facts, the Appeal Panel set out its conclusions as follows:
"19. In the Appeal Panel's opinion, the appeal is without merit and must be dismissed for the following reasons.
20. The Tribunal's decision on 24 May 2007 had two principal components. First, it constituted the dismissal of an application by the appellant for the order that the respondent should pay to her the damages sought in her cross-claim, together with costs. Secondly, it included a determination that since the cross-claim was already before the Tribunal as an element of the proceedings in file 055131, the appellant's filing of two fresh applications (ie an application for Original Decision and an Application for an Urgent Interim Order), thereby causing file 075034 to be created, resulted in an unnecessary duplication, which should be remedied by appropriate orders.
21. The Appeal Panel has no doubt that the first of these steps was justified. The appellant put forward no evidence to contradict the relevant statements in Mr Edwards' affidavit. These statements outlined the limited extent to which the respondent had failed to comply with the Tribunal's directions regarding the filing of a further defence to the cross-claim within stipulated time limits and provided explanations for these failures. These failures fell very far short of providing grounds for an order striking out the respondent's further defence to the cross-claim. An order to this effect would have been manifestly unjust and unsupportable.
22. The second step taken by the Tribunal on 24 May 2007 was of formal significance only. Commonly, cross-claims in the Retail Leases Division are given a separate trial number to that of the initial claim. But that does not necessarily occur when, as in this case, a claim and a cross-claim arrive at the Tribunal by transfer from a court.
23. The Tribunal, by taking this "second step", did nothing to prevent the cross-claim being heard and determined at a subsequent time, along with the claim initially instituted by the respondent. It simply confirmed that, as had been the case before the appellant filed her application on 23 February 2007, both the claim and cross-claim should "travel together" in one file, file number 055131. By virtue of the second order made on 24 May 2007, the contents of annexure A.1 for the Application for Original Decision that the appellant had lodged on 23 February 2007 formed part of the material put before the Tribunal when it heard the claim and the cross-claim."
20 The Appeal Panel dismissed the appeal and on the basis that the appeal as a whole was without merit, ordered costs against the second plaintiff.
21 It was common ground that the ADT proceedings 055131, including the defendant's claim for unpaid rent and the second plaintiff's cross-claim, were heard by the ADT on 5 and 6 September and 10 and 11 October 2007. The Tribunal has reserved its decision on that matter.
22 The second plaintiff appealed from the decision of the Appeal Panel by summons as previously referred to.
23 On 28 April the second plaintiff filed a notice of motion seeking a number of orders which affected these proceedings. Although the return date on the motion was 5 May, it clearly needed to be brought to the attention of the defendant before the hearing date of this matter. In fact the defendant received a copy of the notice of motion and affidavit in support on the afternoon of 29 April. The orders sought in the notice of motion which are relevant to this matter were as follows:
"1. Vacate the hearing date fixed on 30 April 2008 in these matters.
2. Review and vary the orders 1 and 6 made by this Court on 4 February 2008.
In relation to Order 6:
3. Hearing of file number 079043 in this court (order 6) be stayed until the judgment is delivered in the ADT for matter number 055131.
4. The order 6 made by this court on 4 February 2008 be reviewed and redirected subject to order 3 above.
5. The court order ADT to transfer the file number 079043 to this court with all documents, exhibits, submission etc to this court prior to the hearing of the said appeal, subject to orders 3 and 4 above."
24 There was nothing in the supporting affidavit which provided any basis for any of the above orders. At the hearing Mr Clachers, the solicitor for the defendant, made available to the court and to the third plaintiff a bundle of documents which included the Application for Original Decision filed by the second plaintiff in the ADT (proceedings 075034), the affidavit of Darren John Edwards sworn 23 May 2007, the transcript of the dismissal hearing before Ms Higgins on 24 May 2007, the second plaintiff's notice of appeal filed in the ADT (proceedings 079043), submissions filed on behalf of the second plaintiff in the ADT for the appeal, a transcript of the hearing of the second plaintiff's appeal in the ADT (proceedings 079043), the decision and reasons for decision of the ADT Appeal Panel of 18 December 2007 and a copy of the pleadings filed in the Supreme Court.