4.2 Commencement of these proceedings and attempts to serve the second respondent
26 The applicants submitted that on 6 October 2017, their solicitors notified Adventures in Paradise of their intention to institute proceedings, subject to waiting for the applicants' injuries to stabilise before filing the same. While this may be uncontentious, there was no evidence to support the submission and as such, I make no finding on the issue.
27 On 24 August 2018, Adventures in Paradise went into liquidation (Annexures SK-18/RY-18). Mr Jenkins, who is presently named as the second respondent, was appointed as liquidator (Kaurin/Yousef June affidavits at [19]).
28 On 2 May 2019, Adventures in Paradise was deregistered as a company (Kaurin/Yousef June affidavits at [20] and Annexures SK-8/RY-8).
29 Each of these proceedings were commenced in the Federal Court with the filing of the originating applications accompanied by statements of claim. As earlier mentioned, Shine Lawyers and Stacks Goudkamp, who between them act for the applicants, are collaborating in all of the related actions the subject of this judgment.
30 Ms Kaurin of Shine Lawyers deposes to having attempted on numerous occasions to telephone Mr Jenkins but was only able to make contact with him on 18 July 2019 by telephone for the purpose of arranging service of these Federal Court proceedings upon him. Mr Jenkins advised, in effect, that Adventures in Paradise was still in the process of being liquidated and that the originating application would need to be served on the solicitors for Adventures in Paradise. Mr Jenkins also said that the application could be forwarded to him and he would provide the originating application to the solicitors. The alleged contents of that telephone conversation were summarised by Ms Kaurin in her email to Mr Jenkins later that day headed "Claim against Adventures in Paradise", which was copied to Ms Yousef (Kaurin/Yousef June affidavits at [21] and Annexures SK-9/RY-9). Ms Kaurin asked Mr Jenkins to provide the contact details for Adventures in Paradise's solicitors.
31 That email was forwarded by Mr Jenkins to Mr Mark Fleming of Pacific Partners, which were the liquidator's solicitors. On 24 July 2019, Mr Fleming wrote to Ms Kaurin advising that:
Pursuant to sch4, sect 4 of the Companies (Insolvency and Receivership) Act No. 3 of 2013, your clients cannot commence any claim without the liquidators [sic] consent (which is not given), or by order of the court upon application. Any such application I suggest will be opposed.
I am instructed that your clients have been advised previously the company insurer [AIG] has been notified, and suggest you contact them directly
(Kaurin/Yousef June affidavits at [22] and Annexures SK-10/RY-10.)
32 Clause 4 of Part 3 of Sch 4 of the Vanuatu Companies (Insolvency and Receivership) Act No. 3 of 2013 (Vanuatu) to which the liquidator referred is in evidence and, in line with Mr Fleming's advice, indicates that, subject to an exception not presently relevant, it is not possible to commence any claims against AIP without the liquidator's consent or court order (Kaurin/Yousef June affidavits at [23] and Annexures SK-11/RY-11). It is clear from this evidence that Mr Fleming was proceeding on the basis that the action was pursued directly against Adventures in Paradise.
33 On 6 August 2019, Mr Fleming was advised by an email from Ms Kaurin (copied to the liquidator, Ms Yousef and junior counsel) headed "RE: Claim against Adventures in Paradise" that the applicants "are willing to provide an undertaking not to proceed and recover damages against Adventures in Paradise to the extent that it is not indemnified by the insurer. We are therefore proceeding against Adventures in Paradise in name only for the purpose of obtaining access to its valid policy of insurance." On that basis, the applicants sought Mr Fleming's consent to proceed against Adventures in Paradise with an undertaking acceptable to the liquidator (Kaurin/Yousef June affidavits at [24] and Annexures SK-12/RY-12). A follow-up email was sent by Ms Kaurin to Mr Fleming (and copied to the same persons) on 13 August 2019 seeking a response to the earlier email.
34 On 19 August 2019, HWL Ebsworth Lawyers, solicitors for AIG, wrote to Ms Kaurin regarding the following matters:
• Adventures in Paradise Limited ats Deborah Christine Rohr & Ors; and
• Adventures in Paradise Limited ats George & Rowena Tweedale.
35 In the letter, HWL Ebsworth Lawyers stated that "AIG will not accept service of any documents on behalf of Adventures in Paradise Limited" (Kaurin/Yousef June affidavits at [26] and Annexures SK-14/RY-14).
36 On 24 August 2019 and 26 August 2019, Ms Yousef and Ms Kaurin respectively emailed Mr Fleming, copied to Mr Jenkins, and advised that an application would be filed in the Supreme Court of Vanuatu seeking leave to commence proceedings against Adventures in Paradise in the absence of advice by 30 August 2019 that he would accept service. On 26 August 2019, Mr Fleming responded to Ms Kaurin and Ms Yousef, copied to Mr Jenkins, advising that "[his] client" would not consent to service, "but rather will abide by the courts [sic] directions following any application made in which the merits of the proposed claim will need to be put forward" (Kaurin/Yousef June affidavits at [27]-[28] and Annexures SK-15/RY-15 and SK-16/RY-16). In the context of the letter, Mr Fleming was clearly referring to Adventures in Paradise (see eg his earlier description of himself in the letter as "the company lawyer"). Significantly, the letter expressly identified the error in naming the liquidator instead of Adventures in Paradise, stating that:
If the court was inclined to grant leave, the defendant should be named as Adventures in Paradise Ltd (In Liquidation). No reference should be made to the liquidator.
37 Surprisingly, however, the applicants continued to name the liquidator as the second respondent in these proceedings, instead of Adventures in Paradise, which they now accept was an error they seek belatedly to correct. That notwithstanding, it is clear from his detailed email that Mr Fleming was in no doubt that the intended respondent was Adventures in Paradise (which he referred to as "AIP"). Thus, among other things, Mr Fleming also stated in that email that:
Your clients [sic] claims seem to be based upon the premise that AIP owed some duty or [sic] care to your clients, (which is denied) it breached this, and loss was suffered consequentially. The fundamental issue is that AIP did not own or operate any tour bus involved, and was simply an agent. Also seatbelts are not a legal requirement in Vanuatu.
(Errors in the original.)
38 On 21 October 2019, each of the applicants applied for "[l]eave pursuant to section 4, schedule 4 of the Companies (Insolvency and Receivership) Act No. 3 of 2013 to commence proceedings against Adventures in Paradise Ltd (5559)" in the Supreme Court of Vanuatu. Adventures in Paradise Ltd (5559) (in liquidation) was also correctly named as the defendant in the title of the Vanuatu proceeding. Leave was sought on the basis that, while Adventures in Paradise Ltd was in liquidation, "a policy of insurance covering the defendant's liability was in place at the time of the motor vehicle accident." As such, the applicants sought orders permitting commencement of proceedings "conditional upon the proceedings being restricted to a claim being fully indemnified by the policy of insurance."
39 Due to procedural and agent delays in Vanuatu, that application was not heard until 20 May 2020 (Kaurin/Yousef June affidavits at [30]).
40 On 27 May 2020, the Supreme Court of Vanuatu rejected the application to proceed against Adventures in Paradise (the Vanuatu judgment) (Annexures SK-18/RY-18 to the Kaurin/Yousef June affidavits). In that regard, the judge noted that the liquidator had advised that he was hoping that a sale of Adventures in Paradise's land would be completed that week, its debts fully discharged and a final order to have Adventures in Paradise removed from the register applied for within a month (Vanuatu judgment at [9]). Her Honour concluded that it was necessary to decline the application because there was no evidence of the terms and conditions of any policy of insurance covering Adventures in Paradise at the time of the motor vehicle accident (Vanuatu judgment at [17]). Her Honour also referred to other matters that counted against the grant of leave including prejudice to the creditors (as the liquidation would be delayed), the apparent insufficiency of the applicants' undertaking to defray the cost of keeping Adventures in Paradise on foot during the period of litigation, and the applicants' delay in commencing proceedings (Vanuatu judgment at [18]).
41 Subsequently, on 10 September 2020 the solicitors for P&O Cruises produced to the applicants a copy of the insurance policy taken out by Adventures in Paradise with AIG in response to an application for preliminary discovery (Kaurin/Yousef June affidavits at [37]-[38] and Annexures SK-22/RY-22). The applicants submit that that policy would provide cover for the applicants' damage and loss and may also cover the third respondent's negligence (applicants' June submissions at [20]).
42 On 6 November 2020, Stacks Goudkamp sent a letter to Mr Fleming and Mr Jenkins seeking an update as to the status of Adventures in Paradise, noting that during oral submissions at the hearing of the application in Vanuatu, Mr Fleming had informed the Court that the liquidator hoped that the liquidation process would be completed within a month. The letter also advised that if the liquidation had come to an end and all creditors and expenses had been paid, the applicants considered that Mr Jenkins had no interest in continuing to act as liquidator in opposition to the applicants' claim and, subject to Mr Jenkins' response, advised of their intention to proceed to appoint a new liquidator to continue the claim made on the insurance policy in relation to the damages sought by the applicants (Kaurin/Yousef June affidavits at [39] and Annexures SK-23/RY-23).
43 On 16 December 2020, the applicants were directed to file and serve any application for substituted service in the current proceedings by 18 December 2020. On 21 December 2021, the time for filing and service of the application for substituted service and any application for service outside the jurisdiction in relation to the second respondent was extended to 22 December 2020.
44 On 23 December 2020, the interlocutory applications were filed seeking leave to serve the originating applications and the statements of claim outside Australia, orders for substituted service and in the alternative, orders for deemed service, pursuant to rr 10.43, 10.49 and 10.48 respectively of the FCR. In view of the conclusions which I have reached (as explained below), it is unnecessary to consider the alternative order sought for deemed service under r 10.48 of the FCR.
45 After follow-up emails and other attempts to obtain information about the status of the liquidation of Adventures in Paradise, on 3 March 2021 a response was received from Mr Jenkins advising simply that "[a]s information regarding the Liquidation is confidential I am not at liberty to assist" (see Kaurin/Yousef June affidavits at [53]-[57]). As such, it is reasonable to infer that at that time the liquidation process had not yet been completed and that were it completed, Mr Jenkins would have advised the solicitors for the applicants, as that information could not on any view be confidential. While I have not had the opportunity to hear any explanation that Mr Jenkins may have and therefore would not make any firm finding against him, the indications are that he has not been cooperative to date.
46 At the hearing on 16 February 2021 with respect to the first interlocutory applications, P&O Cruises indicated that they did not oppose nor consent to the orders then sought by the applicants. They did not file any submissions or otherwise seek to be heard on the current interlocutory applications.