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[2018] WASCA 191
Court of Appeal (WA)
2018-10-29
Murphy JA
Original judgment source is linked above.
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
CITATION : ZAGHLOUL -v- WOODSIDE ENERGY LTD [2018] WASCA 191
Jurisdiction : SUPREME COURT OF WESTERN AUSTRALIA
Citation : ZAGHLOUL -v- WOODSIDE ENERGY LTD [2017] WASC 316
Practice and procedure - Where appellant seeks to appeal interlocutory decision without application for leave - Whether appeal incompetent
Practice and procedure - Where master dismissed applications for summary and default judgments brought after appellant had filed and given written notice of discontinuance - Whether notice of discontinuance effective - Whether master erred in dismissing applications for judgment as incompetent
Practice and procedure - Whether leave to withdraw notice of discontinuance ought to have been granted - Whether primary proceedings were an abuse of process
Supreme Court Act 1935 (WA), s 4, s 60(1)(f)
Application to adduce additional evidence dismissed
Agar v Hyde [2000] HCA 41; (2000) 201 CLR 552
Australian Unity Property Ltd v City of Busselton [2018] WASCA 38
Batistatos v Roads and Traffic Authority of New South Wales [2006] HCA 27; (2006) 226 CLR 256
Beijing Joseph Investment Co Ltd v Starr World Investment Ltd [2015] WASC 110
Esso Australia Resources Ltd v Plowman (1995) 183 CLR 10
Forty Two International Pty Ltd v Barnes [2010] FCA 397
Fox v Star Newspaper Co Ltd [1898] 1 QB 636
Hearne v Street [2008] HCA 36; (2008) 235 CLR 125
Heartlink Ltd v Jones As Liquidator of HL Diagnostics Pty Ltd [2007] WASC 254; (2007) 35 WAR 190
Helicopter Aerial Surveys Pty Ltd v Robertson [2015] NSWSC 2104
HFM043 v The Republic of Nauru [2018] HCA 37
K&S Corporation Ltd v Number 1 Betting Shop Ltd [2005] SASC 228
Kelbush Pty Ltd v Australia and New Zealand Banking Group Ltd [2016] WASCA 14; (2016) 49 WAR 374
Liberty Funding Pty Ltd v Phoenix Capital Ltd [2005] FCAFC 3; (2005) 218 ALR 283
Perazzoli v BankSA, a division of Westpac Banking Corporation Ltd [2017] FCAFC 204
Ponnambalam v The State of Western Australia [2015] WASCA 185
Re B & J Engineering Pty Ltd (In Liquidation) v Daroczy [1984] FCA 404; (1984) 4 FCR 524
Riddick v Thames Board Mills Ltd [1977] QB 881
Sheraz Pty Ltd v Vegas Enterprises Pty Ltd [2015] WASCA 4; (2015) 48 WAR 93
Silbert v Steinberg [2010] WASCA 113
Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118
Taylor v The Owners - Strata Plan No 11564 [2014] HCA 9; (2014) 253 CLR 531
The Bell Group Ltd (in liq) v Westpac Banking Corporation [2001] WASC 315
The State of Western Australia v Bond Corporation Holding Ltd (1991) 5 WAR 40
Tomlinson v Ramsey Food Processing Pty Ltd [2015] HCA 28; (2015) 256 CLR 507
UBS AG v Tyne [2018] HCA 45
Wilson v Metaxas [1989] WAR 285
I discontinue this proceeding without prejudice on the basis of what I have found yesterday to be a technicality that could form the basis to dismiss my application, notwithstanding my belief that I have a course of action against the defendants, and to avoid waste of the Court's valuable resources.
Why leave to withdraw the notice of discontinuance should have been refused
(1) was made following the appellant's demand and application for discovery and inspection of the report in the Federal Court proceedings; and
(2) was by way of informal discovery and inspection in the Federal Court proceedings.
Accordingly the action has been discontinued by the steps taken by the plaintiff. He did not need leave to discontinue and there was no impediment to his filing a notice which terminated the action. Having done so the proceedings are at an end and no further interlocutory steps can be taken in the proceedings. The application for summary judgment is incompetent.[19]
(a) any such error could not have affected the determination of the summary judgment application; and
(b) on the available evidence, any such application ought to have been dismissed and ought now be dismissed for the reason that the action which the appellant seeks to continue is an abuse of process and has no reasonable prospects of success.
2 (1) The plaintiff may, at any time before receipt of the defendant's defence, or after the receipt thereof before taking any other step in the action, by notice in writing, wholly discontinue his action against all or any of the defendants or withdraw any part or parts of his alleged cause of complaint, and thereupon he shall pay such defendant's costs of the action, or, if the action be not wholly discontinued, the costs occasioned by the matter so withdrawn.
(2) The costs referred to in subrule (1) shall be taxed, and such discontinuance or withdrawal, as the case may be, shall not be a defence to any subsequent action.
(3) Save as in this rule otherwise provided, it shall not be competent for the plaintiff to withdraw the record or discontinue the action without leave of the Court, but the Court may before, or at, or after the hearing or trial, upon such terms as to costs, and as to any other action, and otherwise, as may be just, order the action to be discontinued, or any part of the alleged cause of complaint to be struck out.
Did the appellant require leave to discontinue?
In my opinion, Order 30, rule 1(1) of the Rules has no application to the circumstances of a case such as this. That is because the writ had not been served at the time the notice of discontinuance was filed. In my opinion this case is governed, not by Order 30, rule 1(1) but by Order 30, rule 1(2). There could be no discontinuance without the leave of the Court.
My reasons for this view stem from a consideration of a number of the provisions of the rules, including those of Order 30, rule 1. The words of that rule make it clear that in a case where there are no pleadings and no appearance has been entered, there can be no discontinuance without leave. The relevant part of the rule provides that, where there are no pleadings, the plaintiff may, within 15 days after appearance, discontinue. In such a case there is no entitlement to discontinue as of course either before appearance or after the expiration of 15 days from the entry of the appearance. [29]
In cases where a writ has not been served or has been served but no appearance has been entered, a plaintiff will always be able to seek the leave of the Court to discontinue the action pursuant to Order 30, rule 1(2). In my opinion the rule needs to be understood as though the words 'after appearance and' were inserted after the words 'at any time' so that it reads, 'The plaintiff may, where there are pleadings, at any time after appearance and before the receipt of the defendant's defence ... wholly discontinue his action ...'[30]
It seems to me that Order XXVI, is intended to form a complete code applicable to the whole subject of discontinuing an action ... The principle of the rule is plain. It is that after the proceedings have reached a certain stage the plaintiff, who has brought his adversary into court, shall not be able to escape by a side door and avoid the contest ... The substance of the provision is that, after a stage of the action has been reached at which the adversaries are meeting face to face, it shall only be in the discretion of the judge whether the plaintiff shall be allowed to withdraw from the action so as to retain the right of bringing another action for the same subject-matter.[34]
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Affidavit of Hassan Zaghloul affirmed on 9 October 2017, pars 22 - 26.
[2] Affidavit of Hassan Zaghloul affirmed on 9 October 2017, pars 29, 32 - 33; affidavit of Jacqueline Elizabeth Young affirmed on 23 October 2017, pars 7 - 8.
[3] Affidavit of Hassan Zaghloul affirmed on 9 October 2017, pars 34 - 35; affidavit of Jacqueline Elizabeth Young affirmed on 23 October 2017, pars 9 - 11.
[4] Affidavit of Jacqueline Elizabeth Young affirmed on 23 October 2017, pars 12 - 14.
[5] Affidavit of Jacqueline Elizabeth Young affirmed on 23 October 2017, pars 16 - 18, annexures JEY1 - JEY5.
[6] Affidavit of Hassan Zaghloul affirmed on 2 October 2017, par 5 - 6; affidavit of Jacqueline Elizabeth Young affirmed on 23 October 2017, pars 21 - 24.
[7] Affidavit in Regard to Discontinuance affirmed 20 October 2016, par 3.
[8] Affidavit of Jacqueline Elizabeth Young affirmed on 23 October 2017, pars 25 - 39.
[9] Outline of Submissions in Support of the Application for Summary Judgment dated 23 October 2017, par 85.
[10] Ponnambalam v The State of Western Australia [2015] WASCA 185 [29] - [32].
[11] Affidavit in Regard to Discontinuance affirmed 20 October 2016, par 3; affidavit of Hassan Zaghloul affirmed on 2 October 2017, par 9; affidavit of Hassan Zaghloul affirmed 9 October 2017, par 13; appeal ts 43 - 44.
[12] Esso Australia Resources Ltd v Plowman (1995) 183 CLR 10, 32 - 33; Hearne v Street [2008] HCA 36; (2008) 235 CLR 125 [96]; The Bell Group Ltd (in liq) v Westpac Banking Corporation [2001] WASC 315 [280] - [291]; Liberty Funding Pty Ltd v Phoenix Capital Ltd [2005] FCAFC 3; (2005) 218 ALR 283 [20]; Helicopter Aerial Surveys Pty Ltd v Robertson [2015] NSWSC 2104 [9] - [18].
[13] Riddick v Thames Board Mills Ltd [1977] QB 881, 896 - 897, 901 - 903, 910 - 912; Forty Two International Pty Ltd v Barnes [2010] FCA 397 [94]; K & S Corporation Ltd v Number 1 Betting Shop Ltd [2005] SASC 228 [50]; Perazzoli v BankSA, a division of Westpac Banking Corporation Ltd [2017] FCAFC 204 [269].
[14] As to which, see Sheraz Pty Ltd v Vegas Enterprises Pty Ltd [2015] WASCA 4; (2015) 48 WAR 93 [5] - [10], [118] - [119]; Tomlinson v Ramsey Food Processing Pty Ltd [2015] HCA 28; (2015) 256 CLR 507 [25]; UBS AG v Tyne [2018] HCA 45 [1], [83], [126].
[15] See Silbert v Steinberg [2010] WASCA 113 [2].
[17] The facts are taken from the affidavit of Jacqueline Elizabeth Young affirmed 23 October 2017, Green AB 75 - 88.
[21] Kelbush Pty Ltd v Australia and New Zealand Banking Group Ltd [2016] WASCA 14; (2016) 49 WAR 374 [80] - [81]; The State of Western Australia v Bond Corporation Holding Ltd (1991) 5 WAR 40, 54 - 57; Wilson v Metaxas [1989] WAR 285, 294.
[22] See definition of 'action' in Supreme Court Act 1935 (WA) s 4.
[26] Ponnambalam v The State of Western Australia [2015] WASCA 185 [29] - [32].
[27] Agar v Hyde [2000] HCA 41; (2000) 201 CLR 552 [57]; Batistatos v Roads and Traffic Authority of New South Wales [2006] HCA 27; (2006) 226 CLR 256 [46]; Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118 [51] - [55].
[28] Re B & J Engineering Pty Ltd (In Liquidation) v Daroczy [1984] FCA 404; (1984) 4 FCR 524.
[29] Re B & J Engineering Pty Ltd (In Liq) v Daroczy, 530.
[30] Re B & J Engineering Pty Ltd (In Liq) v Daroczy, 531 - 532.
[31] Heartlink Ltd v Jones As Liquidator of HL Diagnostics Pty Ltd [2007] WASC 254; (2007) 35 WAR 190 [40]; Beijing Joseph Investment Co Ltd v Starr World Investment Ltd [2015] WASC 110 [32] - [35].
[32] See Rules of the Supreme Court 1971 (WA) O 20 r 21.
[33] See the discussion in Australian Unity Property Ltd v City of Busselton [2018] WASCA 38 [77] - [85].
[34] Fox v Star Newspaper Co Ltd [1898] 1 QB 636, 639; cited in Heartlink Ltd v Jones [38].
[35] Taylor v The Owners - Strata Plan No 11564 [2014] HCA 9; (2014) 253 CLR 531 [38] - [40], [65]; discussed in Australian Unity Property [87] - [91]. See also HFM043 v The Republic of Nauru [2018] HCA 37 [24].
(2005) 218 ALR 283
(1984) 4 FCR 524
(2000) 201 CLR 552
(2006) 226 CLR 256
(1995) 183 CLR 10
(2008) 235 CLR 125
(2007) 35 WAR 190
(2016) 49 WAR 374
(2015) 48 WAR 93
(2010) 241 CLR 118
(2014) 253 CLR 531
(1991) 5 WAR 40
(2015) 256 CLR 507