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BEAU RIVAGE PTY LTD v BERNHARDT
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KIRBY P, CLARKE and MEAGHER JJA
1 May 1989, 1 May 1989
[1989] NSWCA 18
PRACTICE and PROCEDURE — decision on a separate question final judgment —
whether leave to appeal necessary under Supreme Court Act 1970, s103 — held:
Leave probably not necessary but summons for leave to appeal stood over to be
heard, if necessary, concurrently with the appeal brought purportedly as of right.
Smith v Tabain (1987) 10 NSWLR 562 referred to.
PRACTICE and PROCEDURE — stay — to stop winding up of company appellant
— agreed will be wound up in future — agreed as risk that moneys will not be
recoverable — reasons necessary to secure a stay — held: Stay refused. Alexander v
Cambridge Credit Corporation Ltd (Receivers Appointed) (1985) 2 NSWLR 685
referred to. ORDERS 1. Stand over to the hearing of the appeal the summons for
leave to appeal. Costs of the summons, costs in the appeal. 2. Motion for a stay
dismissed. The costs of the motion to be opponents' costs in the appeal.
Kirby P When this matter originally came before the Court it was a summons
for leave toappeal. However, in the course of argument it appeared that it was
appropriate to transfer the summons to be heard by the Court hearing the appeal
purportedly brought as of right. It was the contention of counsel now appearing
for the claimant that there was an appeal as of right. That argument was not
controverted by counsel for the opponents. The authority of Smith v Tabain
(1987) 10 NSWLR 562 and other cases suggest that, notwithstanding s103 of the
Supreme Court Act 1970 in the circumstances of the case, there is an appeal as
of right. In those circumstances the appropriate course is to stand the summons
over to the hearing of the appeal. It can lie in reserve, in case the Court hearing
the appeal forms a view different from that which this Court is inclined to take
in the light of the position of the parties, namely, that the appeal lies here as of
right. Accordingly the summons for leave to appeal will be stood over to be heard
with the appeal. The notice of appeal purportedly filed will be taken as having
been filed in the appeal. The costs of the summons will be costs in the appeal.
A stay was then sought of the orders made by Young J. However, in my view
the stay should not be granted. The opponents have been kept out of their money
for a very long time. It was not suggested that there was any risk that the moneys
would be irrecoverable if paid to the opponents. On the contrary, that suggestion
was not urged upon the Court. It was acknowledged, as Young J recorded twice
in his judgment, that the claimant agreed that the company would be wound up
in due course. Therefore the question is only the timing of it. Yet the purpose of
the stay sought was said to be to prevent the winding up. Its real purpose was no
doubt to ensure that those presently behind the claimant, and not the receiver,
control the litigation of the appeal.
It is true that in Alexander v Cambridge Credit Corporation Ltd (Receivers
Appointed) (1985) 2 NSWLR 685 the Court re-examined the principles upon
which stays are granted. It is not necessary, in order to secure a stay, to prove
exceptional grounds. But in every case the exercise is in the discretion of the
2 UNREPORTED JUDGMENTS
Court. Reasons must be shown to disturb the authority and force of the orders
made below, as in this case by Young J. They remain valid orders until set aside
on appeal. Such reasons have not been advanced in this case to my satisfaction.
The reasons why I have reached that conclusion are sufficiently elaborated in
exchanges between the Court and counsel. I will not repeat them now.
The orders which I therefore propose are: (1) Stand over to the hearing of the
appeal the summons for leave to appeal. Costs of the summons, costs in the
appeal;
(2) Dismiss the motion for a stay.
The costs of the proceedings before the Court today on the motion, being the
substantial costs incurred in the time taken by the Court and the substantial
matter which the parties came to argue, will be the opponents' costs in the appeal
and will be paid by the claimant in any event.
Counsel for the Claimant: T Jucovic
Counsel for the Opponent: RJ Bainton QC and PF Esler