398 Investment Pty Ltd v The Monopoly Company Pty Ltd [2026] NSWSC 441
Catchwords: CIVIL PROCEDURE — leave to discontinue proceedings — terms of d iscontinuance — where plaintiff had but did not take advantage of opportunity to have its claims heard on their merits — whether parties should be precluded from commencing fresh proceedings — where plaintiff failed to comply with the Court’s orders — misconduct in proceedings — what dictates of justice require
Supreme Court
New South Wales
Medium Neutral Citation:
398 Investment Pty Ltd v The Monopoly Company Pty Ltd [2026] NSWSC 441
Hearing dates:
9 April 2026
Date of orders:
1 May 2026
Decision date:
01 May 2026
Jurisdiction:
Common Law
Before:
Schmidt AJ
Decision:
For these reasons I further order that neither party may commence fresh proceedings seeking relief in respect of the matters and issues raised in these proceedings.
Catchwords:
CIVIL PROCEDURE — leave to
discontinue
proceedings — terms of d iscontinuance —
where plaintiff had but did not take advantage of opportunity to have its claims heard on their merits — whether parties should be
precluded
from commencing fresh proceedings
— where plaintiff failed to comply with the Court’s orders
— misconduct in
proceedings
—
what dictates of justice require
Legislation Cited:
Civil Procedure Act 2005
(NSW), ss 56 , 57, 58, 59, 60,
61, 91
District Court Act
1973
(NSW), s 4
Local Court Act 2007
(NSW), s 29(1)(a)
Uniform Civil Procedure Rules 2005
(NSW), rr 12.1, 12.3, 12.5, 42
Cases Cited:
Aon Risk Services Australia Limited v Australian National University
(2009) 239 CLR 175; [2009] HCA 27
Australian International Academy of Education Inc v The Hills Shire Council
[2011] NSWLEC 208
Dennis G. Pamplin Pty Limited atf the Dennis G Pamplin Family Trust v Ann Margaret Irwin in her capacity & as administratrix of the estate of the late Adrian Dennis Pamplin
[2025] NSWSC 270
Hans Pet Constructions Pty Limited v Cassar
[2009] NSWCA 230
Malaysian Airlines Australia v Patel
[2011] NSWCA 339
Minister for Aboriginal Affairs v Peko-Wallsend Limited
(1986) 162 CLR 24; [1986] HCA 40
Oshlack v Richmond River Council
(1998) 193 CLR 72; [1998] HCA 11
R v Hunt; Ex parte Sean Investments Pty Ltd
(1979) 180 CLR 322; [1979] HCA 32
R v Toohey; Ex parte Meneling Station Pty Ltd
(1982) 158 CLR 327; [1982] HCA 69
Category:
Principal judgment
Parties:
398 Investment Pty Ltd (Plaintiff/Cross-Defendant)
The Monopoly Company Pty Ltd (Defendant/Cross-Claimant)
Representation:
Counsel:
P Sharp (Plaintiff/Cross-Defendant)
DC Price (Defendant/Cross-Claimant)
Solicitors:
HWLE Lawyers (Plaintiff/Cross-Defendant)
Landerer & Company (Defendant/Cross-Claimant)
File Number(s):
2025/00156787
JUDGMENT
Monopoly
is the leaseholder of the Stardust Hotel at
Cabramatta . In 2024 it entered a
written
licen c e agreement with 398, which operated a Chinese restaurant at the Hotel. Monopoly took possession of the
restaurant
in March 2025, where plant and equipment owned by 398 was left
behind ,
when it vacated .
Monopoly
later refused
3 98 ’ s
demands that
it
be given access to
the premises to
remove
its
plant and equipment ,
relying on
terms of
the licen c e agreement
which
regulated such
a situation .
398 brought these proceedings in April 2025, seeking a
declaration
that it was the owner of personal property specified in
A nnexure A to its statement of claim.
Although
the
statement of
claim filed did not contain such an
a nnexure.
In the alternative,
398 claimed
it had the better right to possession of
that
property, which it sought
to obtain from
Monopoly . Alternatively,
it
also
s ought
orders for unspecified damages.
39 8 ’ s
claims were defended ,
Monopoly
relying on
the
express
term s
o f
the
licen c e agreement .
Its
defence including that
the agreement
had the effect
that if
398
d i d not remove
its
plant and equipment before the determination of the licence, they became
Monopoly ’ s
property.
I n
June 2025 ,
Monopoly
also
brought a
cross-claim , seeking liquidated
damages
of $107,243.75
under the licen c e agreement , f or invoices in respect of outgoings which it claimed 398
had been obliged
by
the agreement
to pay. The
cross-claim
was also defended ,
398
denying
that
it had received the
invoices.
398
amended its statement of claim
in August, to which
A nnexure A was attached. It still
there
sought declaratory relief. It was
then
given leave to file a further amended statement of claim,
which
it filed in September, but still
a
declaration
was
pursued.
That pleading
was never further amended, despite being
described at the
April 2026
hearing
by 3 98 ’ s counsel
as frankly making no sense.
That shedding light on the unlikelihood of 3 98
establishing
its case
at the hearing , it also not having served evidence to establish its ownership of the property, or its claimed value.
I t was i n November 2025
that
the matter
had been
listed for hearing in April 2026.
Despite o rders made for the preparation
of
the matter for
that
hearing , 398 never complied with
them.
Monopoly , by way of contrast,
had
served its evidence on the
cross-claim
in October .
Still
398
has never served any evidence ,
either
to establish
its
own
claim or
to defend
the
cross-claim .
The reason for th ese
failure s
has
not
been
adequately
explained.
It was only t he week before the
April
hearing
that
398
filed a motion seeking leave to
discontinue.
Monopoly not having consented to the discontinuance, the result
was
that 398 required the Court ’ s leave : Uniform Civil Procedure Rules 2005 (NSW) , r 12.1 .
The motion
was supported by an affidavit sworn by its solicitor,
Mr Wallman .
B ut it
did not explain
389 ’ s
failure to comply with the Court ’ s orders , or the course it
had
pursued , with the result the belated application for leave to discontinue .
It emerged at the hearing that in December 2025 ,
398
had
retained new
solicitors
and
on 10 December
had
proposed
the vacation of the hearing and transfer of the proceedings to the District Court . That w as not consented to
by Monopoly , given
the course which the proceedings had
already
taken .
Despite
this,
398
still
did not comply
with
the Court ’ s orders ;
seek to further amend its statement
of claim ;
approach the Court to have its orders varied ;
file a motion to
have the proceedings transferred
to another Court ;
or
seek
to
have
the
April 2026
hearing vacated
or adjourned .
It was
only on
26 March
2026
that
398
advised Monopoly that it wished to discontinue the proceedings .
While t hat
was also not consented to,
the parties
pursued
further discussions , including at the April hearing .
Rule 12.1 permitted
the
filing
of the motion ,
so that
398
could pursue the
Court ’ s leave to discontinue.
For the purpose of that r ule
the proceedings on the cross-claim were
“ taken to be different proceedings to the proceedings on the originating process and to proceedings on any other cross-claim . ” : r 12.5.
The
result was that the
motion was
also listed
for hearing
on 9 Apri l . The
parties
being
advised that
because
both
398 ’ s
claim
and
the
cross-claim
were
both
listed for hearing,
even
if the motion was successful, the
cross-claim
would be heard.
Still ,
398
took no steps to seek to put on any evidence to resist the
cross-claim , or to advance its
claim s , i n
the
event that the
leave to discontinue which it required was refused .
At the hearing
398
pressed its motion, understanding that Monopoly would then pursue the
cross-claim . But
finally,
a large measure of agreement was
reached , with the result that various orders were made by consent and the parties hear d
about the one
order
which remained in
issue between them .
The
issue
The approach which the parties
so
pursued
was consistent with the obligations imposed on them by s 56 of the
Civil Procedure Act
2005
(NSW).
With t he result that they finally agreed
that the Court should grant both of them leave to discontinue , with a costs order made against 3 98 . B ut
they
could not agree about the pursu it of
their claims in future proceedings .
The orders pressed by Monopoly
were :
“THE COURT, with the consent of the parties:
1.
GRANTS leave to the plaintiff to discontinue the Amended Statement of Claim filed 9 August 2025 (Plaintiff’s Claim).
2.
GRANTS leave to the defendant to discontinue the Statement of Cross-Claim filed 19 June 2025 (Cross-Claim).
3.
ORDERS, pursuant to s 91 of the Civil Procedure Act 2005 (NSW) that neither party may commence fresh proceedings seeking relief in respect of the matters and issues raised in these proceedings.
4.
ORDERS the plaintiff/cross-defendant to pay the defendant/cross-claimant’s costs of the Plaintiff’s Claim and the Cross-Claim fixed in the amount of $35,964.30, with 30 days of the date of entry of these orders.
5.
ORDERS that the plaintiff’s Notice of Motion filed 2 April 2026 be otherwise dismissed.”
Order 4
reflect ed
the parties ’
agreement that 398 should pay Monopoly ’ s costs on an indemnity basis. That reflecting an acceptance of its misconduct in the proceedings, of the kind explained in
Oshlack v Richmond River Council
(1998)
193 CLR 72 ; [1998] HCA 11.
Only order 3 was thus finally in issue. With the other orders being made by consent and the parties
then
heard on the disputed
order .
There was no issue about the Court ’ s power to
make that order . But the exercise of its discretion, which Monopoly pressed, was resisted by 398.
What is in issue has to be decided in the context of what justice requires.
The course the parties pursued
Th e
course which
the parties each pursued is relevant to the exercise of the Court ’ s discretion to
make
the disputed
order .
Both parties having made forensic decisions
w hich resulted in the m
both being granted leave to discontinue.
The result being that neither had their claims heard on their merits .
An opportunity of which parties will not lightly be deprived.
Decisions made by 398
also
resulted in
its unremedied , unexplained
breaches of the Court ’ s orders , that amounting to relevant misconduct in the proceedings .
It having
neither serve d
the
evidence
ordered
to
establish
its claim s
or to
resist
Monopol y ’ s, nor
led evidence
to
explain
the course it
had
pursued , other than in relation to its
belated
decision to pursue a
discontinuance .
Those that
Monopoly made
resulting in it not pursuing
its
cross - claim
at the April hearing , despite
it being ready to be heard and
398 having led no evidence to resist the evidence
Monopoly
had served .
Th os e
decisions
have to be understood in circumstances where, had the measure of agreement
which
the
parties
reached
during the hea r ing
not been
achieved , it is likely that 398 ’ s motion would have
failed,
and the hearing of both
its
claim and the cross - claim would have proceeded. The Court
being required
to do justice between these parties:
Civil Procedure Act
, ss 57 and 58.
398 ’ s claim is then likely to have failed, it having no evidence on which to even establish its claimed ownership of the property.
It is also not apparent how 398 could then have successfully defended the cross-claim, given that it had
also
not served any evidence to put in issue that which Monopoly had served about the invoices on which its
cross- claim rested.
G iven what Monopoly agreed
at the hearing
it must , I consider,
be
inferred
that it
then
either
took the view
that
its prospects of success
on the cross-claim
were not certain , or that given the costs involved, settlement was a preferable outcome to the pursuit of the defended hearing .
Why the disputed term must be imposed
As a result
of what was agreed ,
all
that
remained
to be resolved
was
whether justice permits the disputed
order
being imposed on the parties,
in
all of the circumstances which arise to be considered.
The parties’ cases
It was
properly not
suggested
by 398
that what was in issue between the parties inevitably
had to
result in the
refusal
of the disputed
order .
398 relied on the undoubted
consequence of the
orders, to which the parties had consented, being
that the ir
claims had not been determined on the merits.
And the Court having the discretion not to
make
the disputed
order , in those circumstances.
398
also
relied
on
s
91 of the
Civil Procedure Act
and
r 12.3
of the
Uniform Civil Procedure Rules
to contend that the
“ orthodox ”
position
was
that discontinuance does not inherently bar future litigation on the same claim ,
unless specific conditions are
i mposed
by the Court .
As well as
on
r
42 , under which
398
contended th e
consequence of
late
discontinuance
is usually
a
costs
order . Relying on
the costs order
the parties
had agreed, to urge that it should not
also
be deprived of a further opportunity to press its claim
in relation to the disputed property .
3 98
rel ying
on
Dennis G. Pamplin Pty Limited atf the Dennis G Pamplin Family Trust v Ann Margaret Irwin in her capacity & as administratrix of the estate of the late Adrian Dennis Pamplin
[2025] NSWSC 270, which applied
Australian International Academy of Education Inc v The Hills Shire Council
[2011] NSWLEC 208.
Monopoly contended that
the disputed
order
should be
made ,
despite
the merits
of the two claims
not
having
been
determined,
given
the course
39 8
had pursued in
the proceedings ;
the circumstances in which
it
had so
belatedly
pursued
discontinuance ;
and what had
finally
been agreed
at the hearing .
On
Monopoly ’ s
approach, e ven if it could be assumed that
398 ’ s
claim had some prospect of success, despite the clear term
of
the licen c e agreement ,
it
had
no evidence to establish its claim ed right to the property ,
398
would
thus
have failed at the hearing
had it not consented to the discontinuance .
Given the agreement
which had been reached , to
also
permit
substantial
additional
costs to be incurred
by a further pursuit of 39 8 ’ s thus far
unsubstantiated
claims, would not be just
in all of the circumstances
which had to be considered .
While
making
the
disputed
order
accord ed
with the requirements of the
Civil
Procedure
Act
.
Monopoly’s case must
be
accepted
It is s
61(1) of the
Civil Procedure Act
which regulates the orders and directions which the Court may give for the
“ the speedy determination of the real issues between the parties to the proceedings ” .
It is s
61(3) which specifies what the Court may do if a party fails to comply.
Th at
including
not only orders dismissing the proceedings, striking out or limiting a claim, but also making other orders the Court concludes are appropriate.
It is not disputed that t hey
may
include imposing the disputed
order , as a condition of the grant of leave to discontinue.
Section 91(1)
of the
Act
deal s
with
dismissal
o f proceedings , which
“ does not, subject to the terms on which any order for dismissal was made, prevent the plaintiff from bringing fresh proceedings or claiming the same relief in fresh proceedings ” .
These
proceedings
were, however, not
dismissed.
It is
r
12.3(1)
which
provides
that a discontinuance does not prevent
“ a plaintiff from claiming the same relief in fresh proceedings ” . But that it is subject to the terms of any
consent
or
leave to discontinue which the Court imposes:
r
12.3(2).
In
Australian International Academy of Education
,
Biscoe
J explained that a
term
of the kind here in issue may be imposed, the
underlying principle
being
“ that defendants and the courts are entitled not to be repeatedly troubled by identical claims unless strong countervailing considerations of justice demand it ” : at [13].
Examples
of when such an opportunity is
given being the emergence of evidence which was unobtainable, or a new precedent.
The case
3 98
pressed
relied on it not having had its claims determined on the merits and
the costs order
which the parties agreed as a term of the discontinuance .
That
398 ’ s
claims have not been dealt with on their merits is
a relevant , but not overwhelming ,
consideration . Given that the Court
un questionably
has
the
discretion to
make
the disputed
order , even when parties have not been heard on the
merits
of their claims .
It is
relevant that it is
settled that
“ Normally, if a discontinuance is sought after the commencement of a hearing, there will be a term imposed that no new proceedings of the same character will be brought ” :
Malaysian Airlines Australia v Patel
[2011] NSWCA 339 at [2].
In this case ,
the
motion was brought shortly before the hearing.
The parties ’
discussions resulting in the
hearing
of the competing claims finally
not
having to
commenc e ,
because of the compromise
which
the parties arrived at
during the hearing of the motion.
D espite Monopoly
having
initially indicat ed
that it wished to
proceed with the hearing of
its cross - claim.
That
agreement
remov ed
the necessity for the Court to
determine
3 98 ’ s motion.
G iven
the very limited evidence
it
relied on
to
support
its
application for
leave to
discontinue ,
that
there
could
have been
a
just basis
established
for
the
grant of
the required
leave
is not apparent.
It follows that if agreement had not been reached, the hearing of both 389 ’ s claim and the cross claim would
likely
have proceeded.
What remains
in dispute , given what was agreed
and the resulting consent orders made ,
has to
be resolved
in light of
the Court ’ s obligation to seek to give effect
to the
overriding purpose of th e
Civil Procedure Act
and of
the
rules . That is
specified
in s
56 to be
“ to facilitate the just, quick and cheap resolution of the real issues in the proceedings ” .
Section 56(3) imposing a duty on parties
“ to assist the court to further the overriding purpose and, to that effect, to participate in the processes of the court and to comply with directions and orders of the court ” .
It is relevant that 398 did not comply with this obligation, while Monopoly did.
Section 57 specif ies
the objects to which the Court is to have regard, when managing proceedings for the purpose of furthering that purpose, to be:
“(a)
the just determination of the proceedings,
(b)
the efficient disposal of the business of the court,
(c)
the efficient use of available judicial and administrative resources,
(d)
the timely disposal of the proceedings, and all other proceedings in the court, at a cost affordable by the respective parties.”
The object of a just determination of the proceeding does not overwhelm the other specified objects to which attention must be given when resolving what is in dispute. They, I consider, favour the
making
of the disputed order.
The Court
must
also
follow what the dictates of justice require, having regard to the
overriding
purpose , as well as
what is specified in s
5 8 (2) (b), which the Court finds relevant :
“(i)
the degree of difficulty or complexity to which the issues in the proceedings give rise,
(ii)
the degree of expedition with which the respective parties have approached the proceedings, including the degree to which they have been timely in their interlocutory activities,
(iii)
the degree to which any lack of expedition in approaching the proceedings has arisen from circumstances beyond the control of the respective parties,
(iv)
the degree to which the respective parties have fulfilled their duties under section 56 (3),
(v)
the use that any party has made, or could have made, of any opportunity that has been available to the party in the course of the proceedings, whether under rules of court, the practice of the court or any direction of a procedural nature given in the proceedings,
(vi)
the degree of injustice that would be suffered by the respective parties as a consequence of any order or direction,
(vii)
such other matters as the court considers relevant in the circumstances of the case.”
These requirements are
s tatutorily compulsory , imposing
considerations that are relevant in the sense discussed in
Minister for Aboriginal Affairs v Peko-Wallsend Limited
(1986) 162 CLR 24;
[1986] HCA 40.
That requir ing
them to be taken into account
when consideration is given to the exercise of powers
given by
s
61(3) :
Hans Pet Constructions Pty Limited v Cassar
[2009] NSWCA
230
at [36]-[ 40 ].
In this case all the matters specified by s 58(2)(b) are relevant and must be taken into account.
The s tatutory requirement to
“ have regard to ”
the
matter s
specified in s
58(2)
requir ing
the Court to give the m
“ weight as a fundamental element in the decision-making process ” :
Hans Pet Constructions
at [41], applying
R v Hunt; Ex parte Sean Investments Pty Ltd
(1979) 180 CLR 322 at 329 ; [1979] HCA 32 ;
R v Toohey; Ex parte Meneling Station Pty Ltd
(1982) 158 CLR 327 at 333, 337-338 ; [1982] HCA 69.
The proportional use of the
s
61
powers
being
“ brought about by giving the fundamental weight to the (sometimes competing) considerations in ss 56 and 57 required by s 58(2)(a) and bringing to bear such of the matters set out in s
58(2)(b) as the Tribunal thinks appropriate ” :
Hans Pet Constructions
at [46 ].
In this case ,
consideration must thus be given to the undoubted fact
that
398
did not abide by
its
s
56(3)
duty ,
before it
filed it s motion. It
having not
complied with the Court ’ s orders, which did not involve the mere setting of a procedural timetable for the preparation of the matter for
the April
hearing.
But rather imposing
obligations
which
the parties were both
bound to comply with,
unless relieved of them,
including as to service of
their
evidence.
That 398
failed to make any
application , as it could have,
to have
those orders
set aside
or varied , for reasons which were not explained , thus cannot be overlooked.
That is what drove the parties ’
cost agreement.
It also ha s
to be born e
in mind that a party like 398 has no inherent right to procedural flexibility and indulgence. Only a right to the proper exercise of the Court ’ s discretions:
Aon Risk Services Australia Limited v Australian National University
(2009) 239 CLR 175; [2009] HCA 27 at [96], [111].
3 98
never sought their exercise, after it breached the Court ’ s order s , until it sought leave to discontinue.
It
may also not be overlooked that t he
Court
is also required to implement its
practice and procedure
“ with the object of eliminating any lapse of time between the commencement of the proceedings and their final determination beyond that reasonably required for the interlocutory activities necessary for the fair and just determination of the issues in dispute between the parties and the preparation of the case for trial ” : s
59.
There can be no question that 3 98
was given the time it reasonably required to prepare for the April hea r ing, where it had the opportunity to pursue
the fair and just determination of the issues in dispute
over its claim.
Why it did not take advantage of that opportunity, is unclear.
The Court
must also implement its
practice and procedure
“ with the object of resolving the issues between the parties in such a way that the cost to the parties is proportionate to the importance and complexity of the subject
matter in dispute ” : s
60.
Making
the disputed
order
would , I consider,
help achieve these goals .
While refusing to
make
it
would ,
in the circumstances,
fail to take proper account of the requirements of s
58 and
result in the object s
specified in s
57
being undermined.
Th e parties ’
competing
cases
also
raise for consideration th e
practical
effect of the course which
398
seeks to
pursue .
Its
motion
having been
pursued in order
t o achieve
the vacation
of the hearing
of its claims,
which it
did
not
seek
before or
at the April hearing
and could not then justly have been granted , without Monopoly ’ s agreement.
It h aving no good explanation to advance for
its
failure to prepare for the hearing, that
not
being
explained by new solicitors
having been
retained in 2025.
The
outcome
3 98
sought
by discontinuing these proceedings , to allow
it
to
again
re formulate its claim s
and marshal the evidence which would prove them, so
that
they could
later
be pursued
in another court ,
was still contended not to be unjust ,
because
Monopoly would be protected by principles
regulating
abuse
of
process
and
security
for costs.
That is difficult to accept
and fails to pay necessary regard to the obligations imposed by the
Civil Procedure Act
,
to which the Court must pay attention ,
in resolving what is in issue .
A transfer to another
c ourt
had been
proposed
by 398
in December 2025 ,
but
that was
not
consented to by
Monopoly.
398
still
did not abandon its pursuit of declaratory relief by further amendment of
its
September
statement of claim . Despite
recognis ing that
it s pleading
was
deficient .
I took an adjournment
during the course of the
hearing to give the part i es the opportunity to resolve their
differences , which did not result in further agreement . That followed
Monopoly ’ s
assessment that
the property
398
pursued might have a value of just beyond ,
or less than $125,000 , while th e amount
which Monopoly pursued was some $107,000.
398
did not accept
Monopoly ’ s assessment ,
even though it had
never led evidence to establish its ownership of the property, let alone its claimed value. It
then
only accepting that what it pursued was less than the Supreme Court threshold and
“ probably more a District Court amount ” .
T he District Court threshold
is
now $1.25
million :
District Court Act
1973
(NSW) , s 4. The Local Court ’ s
is
$100,000 in its General Division:
Local Court Act 2007
(NSW), s
29(1)(a).
398 ’ s resistance of the disputed
order
has to be considered in this
context . The evidence
Mr
Wallman
gave
having been
confined to the communications
pursued
with
Monopoly ’ s legal representatives ,
after
3 98
made its
decision to discontinue
the se
proceedings
only in March 2026 .
It follows that 39 8 ’ s failure s
to comply
with
the Court ’ s orders ;
to
have the proceedings promptly
relisted
when it became apparent that it could not comply with them ; to seek leave to replead;
to
seek to have the
matter transferred
to another
c ourt with appropriate jurisdiction ;
to seek to
have
the
April
hearing
adjourned
or vacated ;
and
its
delay in
notifying
Monopoly of the course it
belatedly decided
to
pursue
by
discontinuing
the
proceedings ,
all
do
not support its resistance
of
the disputed
order .
In resolving what is in issue ,
the Court
also
cannot
overlook
the observations in
Aon
at [5] ,
that
“ [T]here is an irreparable element of unfair prejudice in unnecessarily delaying proceedings.
Moreover, the time of the
c ourt is a publicly funded resource.
Inefficiencies in the use of that resource, arising from the vacation or adjournment of trials, are to be taken into account. ”
In
this case
398
did not pursue an adjournment, but rather
discontinuance, so that it could have an
opportunity to commence afresh,
replead and put its case in order,
likely in some other
c ourt . Despite
not having explained the course it has pursued
in
these proceedings ,
as it ought to have.
That also makes it necessary to consider
“ the potential for loss of public confidence in the legal system which arises where a court is seen to accede to applications made without adequate explanation or justification, whether they be for adjournment, for amendments giving rise to adjournment, or for vacation of fixed trial dates resulting in the resetting of interlocutory processes. ” :
Aon
at [30].
Those
observations
apply with equal force
to
discontinuance
of proceedings
in circumstances of the kind which here arose
to be considered . W hen
adjournment
or vacation
of hearing
was
unlikely to be granted
and
leave to discontinue was
sought
instead .
It is thus a lso relevant that if
398
had been refused
leave to discontinue ,
as it is likely to have been
if
agreement on the motion had not been reached, the result
would have been
that
the hearing
of
both
its claim s
and the cross - claim
would have
proceed ed. With the likely result that
389 ’ s
claims
would have failed .
It
having no evidence to
advance
to support
even
its claim ed
ownership
of the disputed property , let alone
its
value .
That
result
would
then
likely
have
triggered
s
91(2)
of the
Civil
Procedure
Act
, which would have prevented
389 ’ s
further
pursuit
of its
claims, its case having
failed
on the merits.
The
agreement which the parties
finally
reached, in those
circumstances,
clearly
accorded
with the obligations which s
56 imposed
on them . I t
having
sav ed
court time and unnecessary costs ,
as it did.
But I consider that
3 98 ’ s resistance
of the
disputed
order
did not.
In all of the circumstances which have to be considered,
I
have concluded that
m aking
the
disputed
order would
accord
with
what
the dictates of justice requir e .
Despite t hat depriving
398
of
yet a further opportunity to
pursue
its claims against
Monopoly . Given how
it sat on its hands as it did , I am not persuaded that this outcome is unjust,
particularly
given that what the parties agreed will
not leav e
it exposed to Monopoly ’ s further pursuit of the cross - claim.
I have taken into account tha t
t he parties have already incurred significant legal costs
which they have agreed
398
must pay.
That reflecting
how
398
brought
its claim
in this Court because of the declaratory relie f which it
pursued
and
never
abandon ed , as it seems on its
own
approach ,
it should have,
in its amended pleadings .
As well as
389
never having
complied with the Court ’ s orders to
serve its evidence
and
also
not having
explained its breaches of
those orders .
Despite which ,
398
still
wishes to maintain the right to put Monopoly to further significant costs,
it appears
by pursuit of its claims in another
c ourt , where further judicial
and administrative resources will
also
have to be utilised.
The degree of injustice to
398
if the disputed
order
is
made
has to be contrasted with
the injustice to
Monopoly ,
if it
is
not.
That also
requires
account to be taken of the
intangible prejudice
which
can arise from the pursuit of litigation
by
the way it
is
conducted.
On 3 98 ’ s part, clearly not in accordance with the obligations imposed on it by s
56 of the
Civil Procedure Act
.
When that is
taken into account ,
it is
difficult
to accept that the degree of injustice which
389
would suffer if the disputed
order
is
made, can justly result in its refusal ,
especially when account is taken of
what
Monopoly
has also agreed to give up.
There can be
n o question that
398 , always legally represented, has had a fair opportunity to pursue the claim s
it brought
in respect of the disputed property
at the
April 2026
hearing ,
which the Court
had
regularly
fixed . It made
no application to
vacate or
adjourn
th at
hearing,
for which it had ample time to prepare .
Having
belatedly
decided not to
pursue
its claim s
a t th e
hearing,
it having not explained why it did not serve evidence , even
to establish its claimed ownership of the disputed property,
it cannot be accepted
that
398
is justly entitled to be given yet another opportunity to
reformulate its claim s
and marshal its evidence ,
simply
because of
the
costs order
which
the parties
agreed .
That would not result in the timely disposal of its claims, at an affordable cost.
Monopoly accept ed
that the
price
of the
disputed
order
i t
presse d
also require d
it to
give up the pursuit of
its
cross-claim , which
it was ready to press at the hearing . That also
supports the
conclusion
that the disputed
order
should
be
made .
Th is , I consider,
achiev es
in all of the circumstances which have to be considered ,
a just outcome between these parties.
Despite, as a result,
398
not
having
its claim
heard on its merits .
An opportunity which i t
undoubtedly had, but did not
pursue ,
at the
h earing .
The Court cannot force parties to avail themselves of a
fair
opportunity
to prepare for and have their cases heard . But it must consider and deal with the consequences
when
parties
fail to
take advantage of such a hearing,
if the required justice is to be done to all those who choose to litigate before it. P articularly when
no
adequate explan ation is provided for
unremedied breaches of
the Court ’ s
orders .
What
3 98
relied on, I am satisfied,
cannot
be accepted as
providing a
just
basis for
refusing to
make
the disputed
order
which
Monopoly presse d the Court to impose
as a condition of
the leave to discontinue
which
it
granted , given the terms the parties
had
otherwise agreed . All
of
the other circumstances which
have to
be considered in resolving
the
dispute
over that order
establishing , as I have
explained,
a just basis for the exercise of the Court ’ s discretion to make the disputed order .
Orders
For these
reasons
I
further
order
that neither party may commence fresh proceedings seeking relief in respect of the matters and issues raised in these proceedings .
**********
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Decision last updated:
07 May 2026
Official source: https://www.caselaw.nsw.gov.au/decision/19ddbdbd46f48bd9df336efc