In the matter of Beverage Freight Services Pty Ltd [2020] NSWSC 509

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Beverage Freight Services Pty Ltd [2020] NSWSC 509 Hearing dates: 25 March, 2 April, 17 April, 29 April, 2 May 2020 Decision date: 08 May 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Proceedings not dismissed after non-compliance with orders substantially remedied. Plaintiffs to pay Defendants' wasted costs of the discovery process over several months and hearings consequential upon non-compliance with Court's orders, such costs to be payable on specified basis . Catchwords: CIVIL PROCEDURE — Dismissal of proceedings for ongoing non-compliance with court orders and directions – Whether non-compliance with discovery orders over substantial period warrants dismissal of proceedings – effect of late remediation of non-compliance.

CIVIL PROCEDURE — Discovery – Non-compliance with discovery orders – Ongoing non-compliance with orders to produce financial documents held in electronic form – late remediation of non-compliance.

COSTS – Bases of quantification – Whether indemnity costs are appropriate – Whether costs should be payable forthwith – Whether gross sum costs order appropriate Legislation Cited: - Civil Procedure Act 2005 (NSW), ss 56, 57, 58, 61, 98 - Evidence Act 1995 (NSW), ss 135, 136 - Supreme Court Practice Notes, Practice Note No SC Eq 11 - Uniform Civil Procedure Rules 2005 (NSW), rr 42.2, 42.5 Cases Cited: - Aon Risk Services v Australian National University (2009) 239 CLR 175 - Brookfield v Yevad Products Pty Ltd [2004] FCA 1164 - Cabport Pty Ltd v Marinchek (No 2) [2013] NSWCA 131 - Clifton (Liquidator) v Kerry J Investment Pty Ltd trading as Clenergy [2020] FCAFC 5 - Commissioner of Australian Federal Police v Omar [2020] NSWSC 155 - Expense Reduction Analysts Group Pty Ltd v Armstrong Strategic Management and Marketing Pty Ltd [2013] HCA 46; (2013) 250 CLR 303 - Ghosh v NineMSN Pty Ltd [2015] NSWCA 334; (2015) 90 NSWLR 595 - Lenijamar Pty Ltd v AGC (Advances) Ltd [1990] FCA 520, (1990) 27 FCR 388 - Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 - Rafferty v Time 2000 West Pty Ltd (No 3) [2009] FCA 727 - Richmond v Ora Gold Ltd [2020] FCA 70 - Re Punters Show Pty Limited [2017] NSWSC 605 - Richards v Cornford (No 3) [2010] NSWCA 134 - Saba v Plumb & Anor [2017] NSWSC 955 - The Recyclers (NSW) Pty Ltd v Ayoub (No 3) [2016] NSWSC 576 - Webster v Super Smart Strategies Pty Ltd [2017] NSWSC 531 Category: Principal judgment Parties: J & E Vella Pty Ltd (First Plaintiff) Joseph Gregory John Vella (Second Plaintiff) Brian Charles Hobson (First Defendant) Hynadam Pty Ltd (Second Defendant) Brett Soper (Third Defendant) Mechita Pty Ltd (Fourth Defendant) Beverage Freight Services Pty Ltd (Fifth Defendant) Beverage Distribution Australia Pty Ltd (Sixth Defendant) Representation: Counsel: A Fernon (Plaintiffs) M Dolenec (Defendants)