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DANDASHLI v DANDASHLI
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
HANDLEY JA AND COHEN AJA
16 December 1996
[1996] NSWCA 138
Handley JA In this matter Mr Donohoe QC moves for leave to appeal from
a decision of Newton DCJ given on 15 November 1996 in which he dismissed
a notice of motion on behalf of the defendant for orders under a number of
sections in the Motor Accidents Act. The application for leave to appeal has only
been pressed in reliance on s5OA and s52(4) of the Act.
The plaintiff was injured in a motor vehicle accident on 21 January 1992. He
was 16 years of age at the time. His claim on the defendant's insurer was lodged
on 2 February 1996.
It is apparent that more than 3 years had then elapsed since the accident and
therefore s52(4) prima facie applied and the proceedings were
statute barred unless the plaintiff could obtain an order under that section
permitting the proceedings to be brought out of time by leave.
SSOA inserted by Act No 55 of 1955 provides that:
"A claimant is not entitled to commence court proceedings against another
person until the claimant has given to that person's insurer full details of the
claimant's injuries, disabilities, impairments, where appropriate the prognosis for
future recovery and of any claims for economic and other losses claimed as
damages".
The purpose of the section, as its terms indicate, is to enable the insurer, so far
as practicable, to make a proper assessment of the claimant's full entitlement to
damages. A further purpose indicated by the heading to the section is the
facilitation of settlement before court proceedings are commenced. Mr Donohoe
has pointed to a number of deficiencies in the claim form submitted on behalf of
the plaintiff, and it is fair to say that on some the claimant has a fair arguable
point.
S50A has to be read, however, with s52(1A)(b), which provides that:
"A claimant is not entitled to commence court proceedings in respect of a
claim until ninety days have elapsed after the details required by SSOA were
given to the other person's insurer'.
In fact proceedings were not commenced until 27 June, some 4/2 months after
the lodgment of the claim. During that time there was no
suggestion by the insurer that there were any deficiencies in the claim
submitted by the plaintiff.
In the circumstances I consider that any shortcomings in compliance with
s5OA have been waived by the insurer. That this was its attitude is not surprising
in view of its letter of 25 March 1996 which rejected the claim.
In the circumstances I consider that the claimant does not have a fair arguable
case based on non-compliance with s50A, sufficient to entitle him to leave to
appeal.
The remaining ground concerns the provisions of s52(4) as amended. This
provides, so far as material:
2 UNREPORTED JUDGMENTS
"The claimant is not entitled to commence proceedings in respect of a claim
more than 3 years after:
(a) the date of the motor accident to which the claim relates or;
(b)...
except with the leave of the court in which the proceedings are to be taken".
The plaintiff commenced proceedings prior to obtaining the necessary leave.
Mr Donohoe's submission is that s52(4) imposes a statutory condition precedent
to the commencement of proceedings and that proceedings commenced out of
time without the prior leave of the Court must be dismissed.
Where a statute imposes a condition precedent of a procedural nature which
must be satisfied prior to the commencement of proceedings, it will be
difficult for a court to treat the condition as a condition subsequent which can
be satisfied after proceedings have been commenced as that will be contrary to
the intention of Parliament as expressed in the statutory language.
The provisions of s52(1A) appear to be of this character. However in my
judgment s52(4) has a different operation. It is in the common form of a statute
of limitations. Despite its language it does not impose a procedural condition
precedent to be satisfied before the commencement of litigation.
The section is substantially in the same form as sections contained in
bankruptcy and company legislation in Britain, Australia and elsewhere in the
Commonwealth for a very long time.
In re Saunders (1996) 3 WLR 473 Lindsay J undertook a comprehensive
review of the decisions over the last hundred years on provisions requiring the
leave of the Court before proceedings are commenced or continued against a
bankrupt or a company in liquidation.
There has been a long history of decisions that proceedings commenced
without leave contrary to such provisions are not nullities but irregularities
capable of being cured by the subsequent grant of leave. Lindsay J held that since
the Insolvency Act 1986 had refrained from employing emphatic language
making retrospective leave impossible but had used language having clear roots
in the earlier statutes leave might, in appropriate circumstances, be granted with
retrospective effect after the proceedings had been commenced.
Many of the cases discussed by Lindsay J were Australian cases including a
number in this State. Given the long history of decisions on
provisions which, in my judgment are substantially similar to s52(4), it seems
to me that this Court would adopt the same interpretation of s52(4).
This has certainly been the practice in this State since the Motor Accidents Act
commenced, and to my knowledge this is the first time that the point has been
taken on behalf of an insurer. It is not without significance that the point was not
taken before Newton DCJ.
I do not see in s52(4) the emphatic language which would be required before
this Court would adopt a different interpretation of a provision of this kind. In my
opinion the proposed appeal does not have sufficient prospects of success to
warrant the grant of leave.
I propose therefore that leave should be refused with costs.
Cohen AJA I agree that leave should be refused and the orders proposed.
Leave to appeal is refused with costs.
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