Pyropanel Developments P/L & Anor v. Adelaide Fire Doors P/L & Ors [1994] FCA 897
Federal Court of Australia
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JUDGMENT NO. sean Sect pal dt.
CATCHWORDS
PRACTICE AND PROCEDURE - Request for further and better
particulars - particulars of English words in ordinary use -
particulars of an individual's knowledge or awareness.
No NG 394 of 1994
LINDGREN J
SYDNEY
16 NOVEMBER 1994
IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY ) NG 394 of 1994
GENERAL DIVISION
CORAM: LINDGREN J
PLACE: SYDNEY
DATE: 16 NOVEMBER 1994
THE _COURT ORDERS:
)
. PYROPANEL DEVELOPMENTS PTY
LIMITED (ACN 005 211 147)
First Applicant
AUSCO FIRESTOP PTY LIMITED (ACN
057 078 592)
Second Applicant
.
.
ADELAIDE FIRE DOORS PTY LIMITED
(ACN 053 179 016)
First Respondent
ALLIED FIRE PROTECTION SYSTEMS
(AUSTRALIA) PTY LIMITED
Second Respondent
GARY SOMERVILLE
Third Respondent
JANE ADELE ROBERTSON
Fourth Respondent
PAUL ROBERTSON
Fifth Respondent
1. THAT the applicants provide proper particulars of the
facts, matters and circumstances pleaded in the following
paragraphs of the amended statement of claim filed on 22
August 1994 in conformity with where relevant, the
following paragraphs of the "Request for Particulars of
Amended Statement of Claim" dated 1 September 1994.
" est
Paragraph of Amended Particulars of Amended
6 (a)
(b)
(d)
(f£)
(g)
7 (c)
(e)
(£)
10 (a)
(b)
11 (a)
(b)
(c)
(d)
THAT the applicants pay one half of the respondents'
costs of the motion filed 3 November 1994.
Settlement and entry of orders is dealt with in
Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY ) NG 394 of 1994
GENERAL DIVISION
)
PYROPANEL DEVELOPMENTS PTY
LIMITED (ACN 005 211 147)
First Applicant
AUSCO FIRESTOP PTY LIMITED (ACN
O57 078 592)
Second Applicant
.
.
ADELAIDE FIRE DOORS PTY LIMITED
(ACN 053 179 016)
First Respondent
ALLIED FIRE PROTECTION SYSTEMS
(AUSTRALIA) PTY LIMITED
Second Respondent
GARY SOMERVILLE
Third Respondent
JANE ADELE ROBERTSON
Fourth Respondent
PAUL ROBERTSON
Fifth Respondent
CORAM: LINDGREN J
PLACE: SYDNEY
DATE: 16 NOVEMBER 1994
REASONS FOR JUDGMENT
ANTRODUCTION
There is before me a motion brought on notice of motion dated 1
November 1994 by the respondents seeking orders that the
applicants "adequately respond to the respondents' request for
further and better particulars of the amended statement of
claim". The amended statement of claim was filed on 22 August
1994. Shortly, it alleges that the second respondent to which
I may refer as "Allied" is a distributor in Australia of products
manufactured by the first respondent to which I may refer as
"Adelaide." It alleges that the third respondent to whom I may
refer as "Somerville" is an employed officer of Allied. It is
alleged that the fourth and fifth respondents to whom I may refer
as "Mr and Mrs Robertson" are directors of Allied.
Rather similarly on the other side of the record, it is alleged
that the second applicant to which I may refer as "Ausco" is the
distributor of goods manufactured by the first applicant, to
which I may refer as "Pyropanel". It is alleged in the amended
statement of claim that certain representations have been made ~
by one or other of the respondents, which reflect adversely on
a particular product of Pyropanel, distributed by Ausco, namely
"Pyrosleave firestop collar manufactured by ([Pyropanel] and
supplied by [Ausco]" (called in the amended statement of claim
and in these Reasons, "the Product").
The respondents requested particulars of the amended statement
of claim by a document entitled "Request for Particulars of
Amended Statement of Claim" dated 1 September 1994. That request
was by the respondents' solicitors Triscott & Associates
("Triscotts"), and was responded to by a letter dated,
16 September 1994 by Palombi Hazan the solicitors for the
applicants. Not being satisfied with the particulars then
furnished, Triscotts wrote to Palombi Hazan on 23 September 1994,
asserting the inadequacy of the particulars and in some instances
requesting particulars which arose out of the particulars
supplied in the first instance. This prompted a reply dated 6
October 1994 by Palombi Hazan, which, in general terms, at least
so far as is relevant to today, joined issue as to the adequacy
of the particulars previously supplied. That is not an entirely
adequate account of the letter dated 6 October 1994, since it did
supply some further particulars. But in general terms, since 6
October 1994 the parties have been at issue over the question of
the particulars to be supplied.
By a letter dated, 12 October 1994, Triscotts attempted to
summarise the issues between the parties. There followed —
correspondence between the respective solicitors which was in a
number of instances touched with acerbity and it is unfortunate
that the matter has not been able to be resolved without a
hearing. It 18 desirable that I deliver a judgment on the motion
without further delay, even though this will certainly mean that
these reasons will not be as elaborate or as elegantly expressed
as they would have been if I had reserved. As I understand it,
a solicitor and junior counsel from Queensland are present and
have attended for the purpose of the hearing and it is desirable
in everyone's interest that this judgment be given so that it can
be seen immediately what particulars, if any, should still be
supplied.
Ms Skennar, junior counsel for the respondents, prepared a
summary document which has been of use in noting what particulars
are outstanding and the ways in which the requests for the
various particulars have been dealt with. I will call this "the
Composite Document". It will be convenient if I deal in sequence
with the respective paragraphs of the amended statement of claim.
REASONS
Paragraph 3.
In relation to this paragraph as in relation to other paragraphs,
I will do no more than refer in a summary way to what is pleaded.
It is pleaded that Somerville is an employed officer of Allied
"and actively engaged in the conduct of the second respondent's ~
business". The words which I have quoted were added in the
amended statement of claim, that is to say, they did not form
part of the original statement of claim. Thus, the applicants
seem to think that the addition of those words 1s significant in
their case.
(a) The respondents requested particulars of the capacity in
which Somerville was employed by Allied and the reply given
was, in effect, that he was employed as ae sales
representative of Allied.
(b) Particulars were requested of what was meant by the words
(c)
"actively engaged" to which the reply given was that those
words had their ordinary English meaning. At first blush
it may appear that that is indeed an adequate reply.
Whether that be so or not the reply was later elaborated
upon with the statement that Somerville was a salesman who
endeavoured to make sales of Adelaide's products through
Allied as a distributor. I think that this was an adequate
particularisation of the allegation. Unfortunately there
were added certain references which appeared to be
irrelevant to the particularisation. I refer to the
reference made to paragraphs 2, 3 and 6 of an affidavit of
Scott Teleskivi of 23 June 1994. The particularisation
given that in effect by "actively engaged" what was meant
was that Somerville was a salesman who endeavoured to sell
Adelaide's products through Allied was, in my view, |
sufficient.
There 18 a request for particulars of "the basis" upon
which Somerville actively engaged in the conduct of
Allied's business. I do not understand any further or
separate complaint to be now pressed about the response
which was made to that request which was "By express or
ostensible authority and by reason of the representations
made by the third respondent on behalf of the second
respondent." The request itself was ambiguous and seems to
have been construed as calling for a statement of the
"legal basis" on which Somerville was "actively engaged" in
Allied''s business. In any event the request was met by the
answer given to the request as to the meaning of the
expression "actively engaged". If something more was
requested by the reference to "basis" it seems to me to be
probably a request for evidence and not to be a proper
request for particulars.
Paragraph 4.
This paragraph alleges that Mr and Mrs Robertson are directors
of Allied and are "actively engaged in the conduct of the
business of the second respondent".
(a)
Again there is a request as to the meaning of the words
"actively engaged" and again a reply that those words have
their ordinary English meaning. Eventually the applicants
gave as particulars of the active engagement that this was
to be inferred from the position of Mr and Mrs Robertson
"as directors of the company", although it is added that
,"Further particulars will be provided following discovery
and interrogatories". This is a statement that the only
particulars which at present, are to be relied upon of
"active engagement" are constituted by the fact of the
status of directors. It may well be that that will not get
the applicants where they intend to go but they are
committed to the particularisation which they have given.
That is, they want to argue the case on the footing that in
(db)
the case of Mr and Mrs Robertson the only active engagement
to be relied upon is the status of those two individuals as
directors. So be it. I do not think that further
particulars should be ordered. Unless further particulars
are provided in the future, they will be held to that
particularisation on the hearing. It may be that they will
be able to persuade the Court that the status of
directorship is indeed a sufficient particularisation of
the "active engagement".
The next particulars which were requested of paragraph 4
were, perhaps predictably, particulars of how it was
alleged that Mr and Mrs Robertson were "actually [sic]
engaged" in the conduct of the business of Allied. Clearly
the reference was intended to be to "actively". For the
reasons which I gave earlier, I treat this as nothing more
than a repetition of the request for particulars of the
meaning of "actively engaged". If it was intended to mean
more I would regard it as a request for particulars of
,evidence and therefore as not being a proper request for
particulars.
Paragraph 5.
There was a request as to the locus standi of Ausco. This did
not appear to be pressed in argument before me. There was no
argument about it. I understand that particulars are either not
now sought or it is accepted that those supplied are adequate.
The particulars supplied are that Ausco is licensed by Pyropanel
to supply the Product.
Paragraph 6.
This paragraph pleaded that by a document headed "QUICKSERT"
"published" by Adelaide and "distributed" by "each" of the five
respondents, the respondents and "each of them" has in trade and
commerce in Australia made the representations which are
particularised in paragraph 6. Clearly paragraph 6 is an
important paragraph in the amended statement of claim.
(a) The first particular requested is as to the "location" of
the alleged publication and "the method of distribution" by
each of the respondents. Palombi Hazan answered that the
document "is the Respondents [sic] document and the answer
to this question is within the knowledge of the
Respondents". Triscotts replied that there had been a
positive assertion as to the conduct of the respondents and
that the respondents were entitled to full particulars.
Palombi Hazan responded that they relied on their answers
to date.
In my opinion, the respondents are entitled to particulars
of the publication and distribution. There are subsequent
requests for particulars which, in one way or another, seek
(b)
elucidation of the "publication" and "distribution".
Although the formulation of the requests may, in some
cases, leave something to be desired, the respondents are
entitled to be told in what way it is alleged that Adelaide
published the "QUICKSERT" document and in what way it is
alleged that each and every respondent "distributed" that
document.
It may well be that in the case of some respondents, the
distribution alleged is through the agency of one or other
of the other respondents. But this is a matter of which
particulars must be given. Accordingly, I think that the
respondents are entitled to the particulars referred to in
paragraph (a).
Generally, for the same reason though perhaps surprisingly,
I think that the respondents are entitled to be told what
the applicants "mean" by the use of the word "publish". I
say "surprisingly" because normally one would not be
jentitled to particulars of the meaning of an English word
in ordinary use. Indeed Palombi Hazan's reply was "The word
'publish' has its ordinary English meaning". But the fact
is that there are various meanings that the word "publish"
can have. I think that the request for particulars in this
respect is properly interpreted as simply a request as to
details of the manner, nature and spread of publication.
As so construed, the request should be answered.
(c)
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Paragraph (c) begins with the words "On what basis" and
seems to raise the same question as paragraph (b) did. If
it is not intended to raise the same question, it seems to
be intended to ask for particulars of evidence, and for
that reason not to be a proper request for particulars.
(a)-(h) Paragraphs (d) to (h) relate to the allegation made in
(a)
paragraph 6 that the "QUICKSERT" document was "distributed"
by each of the respondents. It is important to note that
the allegation is indeed that each and every respondent has
distributed the document.
Paragraph (d) asks "on what basis" it is alleged that the
documents were "distributed" by each and all of the
respondents. There is not here an initial request as to
the meaning of "distributed". That being the case, I treat
the request as to the "basis" of the allegation, not as a
request for details of evidence to be relied upon, but for
particulars of the nature of the allegation, that is, for
particulars of distribution. Certain limited particulars
have been supplied in the most recent letter from Palombi
Hazan relating to distribution.
What is said for the respondents is that there is a
positive allegation that each of the respondents did indeed
distribute the document. Although the particulars supplied
in the most recent letter from the applicants' solicitors
-ll1-
go some way to providing particulars, they do not and could
not constitute particulars of "distribution" at least in
relation to Mr and Mrs Robertson. I think that the
position is probably similar in relation to the other
respondents. To take the case of Mr and Mrs Robertson,
what is said is that they "distributed" by reason of
nothing more than the fact that they are directors of
Allied coupled with the fact of the "public availability"
of the document. These do not seem to me to be particulars
of distribution. If they were, it would seem to follow
that each non-executive director of a large public company
"distributes" each document made publicly available by the
company.
It may be that the applicants will wish to argue on the
hearing that the holding of the position of director,
albeit non-executive and no matter how large the board may
be, coupled with the public availability of the document,
constitute a "distribution". If they do indeed wish to
make that contention and are willing to be held to it, so
be it. All that I am concerned with on the hearing of this
motion is whether they should be required to supply further
particulars of distribution. But even accepting that
limitation, I think that the "particulars" given are not
sufficient particulars of "distribution" and the same
comment applies in relation to Somerville who is said to
have distributed the document by reason of nothing more
(e)
(£)
(g)
-12-
than the fact of his being a salesman employed by Allied.
In my view, although the matter may be arguable, the
applicants should be ordered to provide in relation to each
respondent particulars of distribution in answer to
paragraph (d).
Paragraph (e) asks "To whom is it alleged that the document
was distributed?" The answer given is "persons within the
plumbing trade". I do not think that it is necessary that
there be particulars of all the individuals to whom
distribution will be sought to be proved on the hearing and
indeed the argument before me today did not deal with this
matter in any detail. I do not think that further
particulars are required of that particular allegation.
Paragraph (f) seeks particulars of "when, where and by whom
it is alleged that the document was distributed". In my
view no particulars or no adequate particulars of this
allegation have been supplied and it 1s a critical
,allegation and one which should be properly particularised.
Therefore I would order that particulars be supplied as
sought in paragraph (f).
Similarly in relation to paragraph (g) what is sought is
particulars of "the alleged method of distribution" of the
document. Either no particulars or no adequate particulars
of this have been supplied. It is true that the applicants
(h)
-13-
have, in their second letter, said what they "assume" to be
the case but the respondents are entitled to have a better
particularisation than that. I think that the applicants
should be ordered to provide the particulars requested.
Paragraph (h) seeks particulars of the "quantities of the
document" alleged to have been distributed. To some extent
this will be answered by the particulars of distribution.
In providing the particulars of distribution referred to
earlier, the applicants will have referred to the breadth
of distribution. I do not think that the request as framed
is a proper request for particulars. It goes to a detail
of evidence, albeit an important detail. I do not think
that the applicants should be ordered to answer this
particular request.
Paragraph 7.
This paragraph alleges that the second to fifth respondents, on
or about 23 May 1994, made the 15 representations which are
listed in paragraph 7.
(a)
The first request is as to the "basis" on which it is
alleged that the representations were made. Essentially
the particularisation given is that the representations
were made by Somerville on behalf of all respondents and
the basis on which it is said that he made them on behalf
(b)
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of all respondents is that he was a salesman employed by
Allied and, in the case of Mr and Mrs Robertson, the fact
that they were directors of Allied. No doubt it is said
that in the case of Adelaide he made them on its behalf by
reason of the additional fact that Allied was Adelaide's
distributor. That is the case which the applicants seek to
run, and whether they will succeed or not is another
Matter, but in my view they have given a proper statement
of the particulars of the agency which they propound.
Paragraph (b) seeks particulars of the persons to whom it
is alleged that each of the representations was made.
Clearly where the case pleaded is one of distribution to
the public, it is required of an applicant to particularise
every individual. However what is referred to in this part |
of the pleading 1s a series of representations made by an
individual orally. I think that it is required that the
individuals to whom the applicants allege that the oral
representations were made be identified. The applicants
have in fact identified these persons as follows: Robert
Cecil Burns, Ron McCewan, Bob of Eagles Plumbing Supplies
and Finlay of Trade Link Plumbing Services.
In my view that is a proper and adequate particularisation.
It may be that at some future stage in these proceedings
the applicants will seek to amend and to provide further
particulars. That can be dealt with at the time. The fact
(c)
(a)
(e)
is that the applicants have adequately particularised
representations to four people at present and no further
particulars should be ordered against them.
Paragraph (c) seeks particulars as to when and by whom it
is alleged that each of the representations was made. The
reply given was that "further particulars will be provided
after discovery and interrogatories". In my view that is
a totally inadequate response. It may have been argued
that the request was superfluous because it does appear
that the allegation is that all representations were made
by one person and one person only, namely Somerville, but
that has not been argued and in any event it would have
been a simple matter to make that statement in answer to
the request. I would order that the applicants supply the
particulars requested in paragraph (c).
Paragraph (da) makes it clear that Somerville's
representations were verbal and nothing further is sought
,or would be granted in the way of particularisation.
Paragraph (e) seeks identification of "the form" in which
each of the representations was made. The response
initially given was simply "Please see the affidavit of
Robert Cecil Burns". I do not think that this is an
adequate response having regard to the fact that the
representations alleged are representations made not merely
(£)
- 16 -
to Robert Cecil Burns but to him and to three other
individuals. The applicants should supply particulars of
the form in which each representation was made to the four
individuals. Again, I would have thought that the answer
was that the form was "verbal" in each case but that has
not been said by the applicants. Why I do not know. There
should be an order that the form in relation to the
representations made to the four individuals namely Robert
Cecil Burns, Ron McCewan, Bob of Eagles Plumbing Supplies
and Finlay of Trade Link Plumbing Supplies' he
particularised.
Paragraph (f) seeks details of "each of the representations
allegedly made by each Respondent". The answer given was
"The precise representations are the subject of the
affidavits in these proceedings and further particulars
will be provided after discovery and interrogatories." I
do not think that that is an adequate particularisation.
It is not appropriate to send the respondents and the Court
,on a search of the affidavits in order to locate the
representations. They should be particularised. I say
nothing as to the form of the particularisation, there
being no argument on that aspect of the matter. The
applicants should be ordered to particularise each
representation allegedly made by each respondent.
-17 -
Paragraph 8.
Paragraph 8 pleads that each of the representations pleaded in
paragraphs 6 and 7 "are and have at all material times been
false".
(a)
(b)
Apparently there is no ongoing complaint in relation to
Paragraph (a).
Paragraph (b) seeks several particulars, the formulation of
the request being somewhat jumbled. The response is the
unhelpful "Please see the affidavits filed in the
proceedings". The request seeks particulars of when,
where, how, to and by whom and in what form it is alleged
that each of the second, third, fourth and fifth
respondents made the representations. That request is-
followed by a number of more particular requests in
paragraphs (c) to (0). However, it is pleaded or at least
particularised that the representations referred to in
paragraph 6 were in writing and the representations
referred to in paragraph 7 were verbal. That is enough to
answer, at least in part, the request in paragraph (b). So
far as I can see, and no argument was made to the contrary,
the matters covered in paragraph (b) are in fact covered by
the requests made in relation to paragraphs 6 and 7.
Accordingly I would not order the applicants to provide the
particulars requested in paragraph (b) in relation to
paragraph 8 of the amended statement of claim.
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Paragraph 8 raises no issue other than an issue as to the
falsity of the representations. Accordingly, the
particulars requested in paragraph (b) as to the
representations themselves are irrelevant to paragraph 8 in
any event.
(¢c)-(0) This takes me to paragraphs (c) to (0) of the composite
document which of course again relate to paragraph 8 of the
amended statement of claim. Apparently no complaint is now
made in relation to the particulars referred to in these
subparagraphs. There was no address related to them in the
hearing today and I pass over them.
Paragraph 9.
Paragraph 9 pleads that by reason of the matters set out in
paragraph 6, 7 and 8 the respondents engaged in misleading and
deceptive conduct within the meaning of section 52 of the Trade
Practices Act 1974 (Cth). There are several requests made for
particulars of that allegation and this was not the subject of
any argument before me today. Again many of the particulars
requested seem to have been covered by earlier requests and
particulars supplied. I think I need say nothing more about
paragraph 9 since the respects in which it is alleged that the
conduct is misleading and deceptive would seem to be the same as
the respects in which it is alleged that the representations were
false.
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Paragraph 10.
This paragraph seeks to plead the "involvement" of the individual
respondents, that is Somerville and Mr and Mrs Robertson, in the
making of the "QUICKSERT" representations pleaded in paragraph
6, and in the making of Somerville's oral representations pleaded
in paragraph 7. The relief sought in the amended application
includes "Damages pursuant to s 82 of the Trade Practices Act
1974". Paragraph 10 is directed to the question whether the
three individual respondents were "involved in" the contravention
of s 52 by the corporate respondents.
Paragraph 10.1 pleads that Somerville and Mr and Mrs Robertson
were "aware of" and "aided, abetted, counselled and procured" the
making of the representations. Paragraph 10.2 pleads that by
reason of the awareness and acts of Somerville and of Mr and Mrs
Robertson referred to in paragraphs 6, 7 and 10.1, they (i)
"aided, abetted, counselled and procured" the pleaded
contraventions of s 52, and (i1) induced Adelaide and Allied to
contravene s 52 as pleaded in paragraph 9, and were knowingly
concerned in or a party to such contravention.
There was argument about the particulars requested in respect of
paragraph 10. The stance of the respondents was: "We have
provided the best particulars that we can provide prior to
discovery". There was no general submission that particulars of
"knowledge" should not be ordered. I note that the respondents
have filed their defence which relevantly denies the allegations
in paragraph 10 of the amended statement of claim.
(a)
(b)
It is requested in paragraph (a) that there be
particularised the manner in which it 1s alleged that the
three individuals "aided, abetted, counselled and procured"
the making of the false representations. Paragraph (a)
also requests particulars of each occasion when the conduct
of aiding, abetting, counselling and procuring took place,
and of the particular individual respondent who is alleged
to have engaged in the conduct. There was no attempt to
meet this last part of the request. I think that the
applicants must provide the best particulars that they can
provide.
Paragraph (b) seeks five groups of particulars, although
the request is confused.
(i) Particulars of the three individuals' "awareness" and
"acts" referred to in paragraph 10.2.
In my view the respondents are entitled to
particulars directed to the issue of the three
individuals' knowledge of falsity of the
representations since the contravention alleged here
is the making of false representations: see Yorke v
Lucas (1985) 158 CLR 661 and, for example, Crocodile
(ii)
(iii)
(iv)
- 21 -
Marketing Limited v Griffith Vintners Pty Ltd (1989)
91 ALR 273 at 281.
In my opinion, the respondents are entitled to the
particulars requested.
How the "awareness" referred to "resulted in" the
"aiding, abetting, counselling and procuring"
pleaded.
Again, unless the respondents are wrong in their
understanding that the applicants intended to
indicate by the opening words "by reason of" in
paragraph 10.2, that the "awareness" "resulted in"
the "aiding, abetting, counselling and procuring",
the particulars sought should be provided.
How the "awareness" referred to "resulted in" the
inducement pleaded.
The position is, mutatis mutandis, as for paragraph
(ii) above.
How the "awareness" referred to "resulted in" the
individual respondents' "being directly or indirectly
knowingly concerned in or a party to" the
- 22 -
contraventions.
The position is, mutatis mutandis, as for paragraph
(ii) above.
(v) When, where and how it is alleged that the individual
respondents were directly or indirectly knowingly
concerned in or a party to the contraventions.
According to the Composite Document no particulars
have been supplied in response to this request. In
my Opinion particulars should be supplied.
Generally in relation to paragraph 10, all that have been given
as particulars are, in effect, the status of Mr and Mrs Robertson -
as directors and their acquiescence. No particulars have been
given in relation to Somerville. It is true that the particulars
to be given may of necessity be somewhat general but the
difficulty with the particulars supplied to date is that they do
not seem to address the question of the actual states of mind of
Mr and Mrs Robertson and Somerville. I refer also, for example,
to the request in sub-paragraph (ii) of paragraph (b) for
particulars of how the awareness of Somerville and Mr and Mrs
Robertson resulted in their "aiding, abetting, counselling and
procuring the contraventions of the Trade Practices Act", to
which there is a response that this is not a proper request for
particulars but a matter for evidence.
- 23 -
I think that in one way or another the request is directed to
elucidating the precise nature of the allegation that Somerville
and Mr and Mrs Robertson were. aware, not only of the making of
the representations, but also of their falsity. If the
applicants wish to commit themselves to the proposition that in
the case of Mr and Mrs Robertson, for example, they rely upon
nothing more than the status of those individuals as directors,
then that should be made clear and the respondents will take
whatever course they think fit. If the applicants wish to rely
upon more than that, they should make it clear on what further
matters they will seek to rely on the hearing.
Although there seems to be no suggestion that Somerville was a
director, again the applicants should make it clear on what basis
they will seek to allege that he knew of the falsity of the
representations. When I use the words "on what basis" I am not
referring to evidentiary matters but for example to such
questions as his knowledge by reason of his having uttered the
words of representation when he actually knew that all or some
of them were false or by reason of, in the case for example of
the Robertsons, their having participated in production of the
offending document knowing that particular aspects of its content
must have been inaccurate. Accordingly, in my view and although
some repetition is involved in the request and therefore will
probably be involved in the answers, the applicants should be
ordered to provide the particulars requested in respect of
paragraph 10 of the amended statement of claim. As noted below,
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the applicants may, following discovery, seek to enlarge the
particulars provided.
Paragraph 11.
This paragraph pleads that the applicants have suffered loss and
damage. I do not think that the respondents are entitled to be
supplied at this stage with full detail of the loss and damage
alleged. However, the applicants' stance that no particulars of
damages need be provided until liability has been determined is
a misconception. The respondents are entitled to be told of the
general nature of the loss alleged to have been suffered by the
applicants. By requesting particulars of "the method of
calculation" the respondents have, I think, sought to make it
clear that that is what they seek. Accordingly, and without
indicating that the applicants are obliged to provide at this
stage detailed calculations, they are required to supply
particulars of the basis on which it is alleged that the
respective applicants have suffered loss, that is, the approach
to damages and the best quantification that they can give at this
stage. Perhaps the best way of expressing that is to refer, as
the respondents have done, to "the method of calculation".
Nothing that I have said precludes the possibility that the
applicants may wish to supply further and better particulars
following discovery. Inspection of documents may convince them
that the scope of the particulars needs to be widened. That
matter can be looked at on its merits if further particulars
should be provided by the applicants and the respondents raise
an objection.
CONCLUSION
There will be orders requiring the applicants to provide proper
particulars of the facts, matters and circumstances pleaded in
the following paragraphs of the amended statement of claim filed
on 22 August 1994 in conformity with, where relevant, the
following paragraphs of the document dated 1 September 1994
entitled "Request for Particulars of Amended Statement of Claim"
and further in conformity with these Reasons.
Paragraph of "Request for
Paragraph of Amended Particulars of Amended
6 (a)
(b)
(d)
(£)
(g)
7 (c)
(e)
(f)
10 (a)
- 26 -
11 (a)
(b)
(c)
(d)
costs
Each party has had a measure of success. This cannot be
adequately assessed by the "counting" of paragraphs on which
there was a "loss" or a "win". The respondents gave ample notice
of their intention to file their notice of motion. In some
instances, the applicants treated the respondents' request less
than seriously. In some cases the respondents' requests were
less than clear in their meaning.
In my view the appropriate exercise of discretion is that the
applicants pay one half of the respondents' costs of the motion. ~
There will be an order accordingly.
I certify that this and the preceding 25 pages
are a true copy of the Reasons for Judgment of
the Honourable Justice Lindgren.
Dated: 24 November 1994
16 November 1994
Sydney
16 November 1994
Mr M J Ellicott of counsel instructed by Yves
Hazan appeared for the applicants.
Mr A J Sullivan QC with Ms D Skennar of counsel
instructed by Triscott & Associates appeared for
the respondents.
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