93 In Schering-Plough Pty Ltd v Page (at [15]) Sheller JA (with whom Meagher JA agreed) after referring with approval to Mason P's statement in Zegarac concerning the significance of proof prejudice, added that the Court should also be mindful of the matters referred to in Gleeson CJ's judgment in Salido v Nominal Defendant (1993) 32 NSWLR 524 (at 532-3), observing (at [16]) that ss 60C and 60E spelt out expressly matters which to some extent, at least, were embraced by the Chief Justice's remarks. He said:
"15…The discretion conferred upon the Court is to be exercised judicially in a manner that furthers the purposes of the statutory context, the immediate purpose, as with any limitation period, being to protect defendants against the injustice of stale claims and to promote forensic diligence. Bearing those matters in mind, the question is whether in the circumstances of each individual case the applicant for leave has demonstrated that it is just and reasonable that leave should be granted. The diligence or lack of diligence shown by a plaintiff or a plaintiff's representatives in ascertaining and asserting his or her rights will ordinarily be a material factor, as will the extent of the relevant delay, and the reason for it. The nature and extent of any forensic disadvantage to a defendant resulting from a plaintiff's delay will also be material. The effect, if any, of the delay upon the defendant's ability to defend an action is a matter to be taken into account, and may in some cases be of decisive importance."
9 The two main areas of dispute in this application are firstly, whether Mr Dean knew that he had a claim against Mr Phung in negligence in September 2006 and, secondly, if he did, is there a proper explanation of delay between 2006 and 2008. Counsel for Dr Phung submitted that this delay causes Dr Phung to suffer actual prejudice.
10 So far as the explanation for delay is concerned, in ASB-Tech Services Pty Limited (In Liquidation) v Doeland & Anor [2003] NSWCA 167, a case where the respondent to the application argued that the applicant's explanation for the delay was inadequate, Hodgson JA (with whom Handley JA and Cripps AJA agreed) said, at [34]:
"… the correct approach is to regard the provision of an explanation as a necessary step in the application, and the nature of the explanation as being a matter which has to be taken into account in the ultimate determination of whether it is fair and just to grant the extension. The weaker the explanation, the greater the need to show that there would be little prejudice to a respondent."
11 Originally these proceedings were ordered to be heard with Advance Arbor Services v Phung but it became necessary to cease doing so and have them heard separately at some point during the hearing.
12 In Advanced Arbor Services v Phung, Johnson J made the following factual findings at [11] to [16]: