ADELAIDE BRIGHTON CEMENT LTD [2024] SASC 51
Applicant: ADELAIDE BRIGHTON CEMENT LTD Counsel: MR RJ WHITINGTON KC WITH
MR R WILLIAMS - Solicitor: DMAW LAWYERS
Respondents: HALLETT CONCRETE PTY LTD, SA PREMIUM CEMENT & CONCRETE PTY LTD,
MARK STEPHEN PICKARD, AND BARRIE HOSKING Counsel: MR B ROBERTS KC WITH
MR T KENTISH - Solicitor: THOMSON GEER
Hearing Date/s: 26/02/2024
File No/s: SCCIV-19-1124
B
SUPREME COURT OF SOUTH AUSTRALIA
(Civil: Application)
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply
to this judgment. The onus remains on any person using material in the judgment to ensure that the intended use of that material does not breach
any such order or provision. Further enquiries may be directed to the Registry of the Court in which it was generated.
ADELAIDE BRIGHTON CEMENT LTD v HALLETT
CONCRETE PTY LTD & ORS (No 4)
[2024] SASC 51
Judgment of the Honourable Chief Justice Kourakis
11 April 2024
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS
- PLEADINGS - GENERALLY
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS
- COURT SUPERVISION - AMENDMENT - ORIGINATING PROCESS,
PLEADINGS ETC
This was an application brought by the first respondent for leave to amend its cross claim further.
In the cross claim that it had filed in the underlying proceedings, the first respondent had alleged that,
in breach of contract, the applicant had not supplied it with cementitious products at a lower price
than the first respondent’s competitors. The application for leave to amend, in this regard, sought to
pursue claims against the applicant in respect of supplies of cement by the applicant to a number of
companies, including Boral Ltd, Hanson Australia Pty Ltd, and Exact Contracting Services Pty Ltd.
In respect of its proposed claim against the applicant for its dealings with Boral Ltd, the first
respondent asserted, on the basis of a discovered swap agreement between those parties in 2016, that
it could be inferred that the applicant and Boral Ltd had executed a similarly wrongful swap
agreement during the relevant period of the dispute. In respect of its proposed claims against the
applicant for its dealings with Hanson Australia Pty Ltd and Exact Contracting Services Pty Ltd, the
first respondent asserted that the applicant had sold cement to the former’s agent at a lower price than
that at which it supplied cement to it, and that the applicant had similarly sold cement at a lower price
than it was contractually entitled to do to Exact Contracting Services Pty Ltd.
The applicant resisted the first respondent’s application for leave to amend its cross claim further on
the bases that: the allegations pleaded were factually hopeless and/or bound to fail; the claims pleaded
were factually distinct from the claims the first respondent had already pleaded; the claims sought to
be pleaded were, in any event, statute-barred and not of a kind likely to receive an extension of time;
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and that the applicant would be prejudiced if the application were granted and any further discovery
necessitated thereby would impact the impending trial of the matter.
Held, granting the application in part:
1. Insofar as its application sought leave to plead a case against the applicant for its dealings
with Boral Ltd, the pleaded facts, taken at their highest, could not make out a case to answer.
No inference could be drawn from the existence of a swap agreement at a later point in time
that there was an identical or similar swap arrangement during the period the subject of the
parties’ dispute. There was, thus, no reasonable basis to that claim, such that it was an abuse
of process.
2. Subject to the first respondent expressly pleading the existence of an agency relationship
between Hanson Australia Pty Ltd and the corporate entity to which the applicant admitted
selling concrete on advantageous terms, the first respondent is permitted to amend its cross
claim to include the claim it sought to plead.
3. The first respondent is permitted to amend its cross claim to include a claim arising from the
dealings between the applicant and Exact Mix Pty Ltd.
Limitation of Actions Act 1936 (SA) s 48; Uniform Civil Rules 2020 (SA) rr 64.2, 70.3, 143.1, 143.2,
referred to.
Adelaide Brighton Cement Ltd v Hallett Concrete Pty Ltd (2020) 137 SASR 117, considered.
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ADELAIDE BRIGHTON CEMENT LTD v HALLETT CONCRETE PTY
LTD & ORS (No 4)
[2024] SASC 51
Civil: Application
1 KOURAKIS CJ: Adelaide Brighton Cement Ltd (ABCL) is a manufacturer of
cementitious products. Hallett Concrete Pty Ltd (Hallett) is a manufacturer of
pre-mix concrete. In April 2008, they entered into a Cement Supply Agreement
(the 2008 CSA) which was subsequently varied on 1 July 2014 (the 2014 CSA).
2 The 2014 CSA requires ABCL to supply specified cementitious products to
Hallett at a lower price than it supplies those products to other ‘customers’ (the
most favoured customer term). In turn, Hallett is required to purchase the ‘bulk
cementitious material’ it needs for its business exclusively from ABCL (the
exclusivity obligation).
3 In September 2019, ABCL commenced proceedings against Hallett for
breach of the exclusivity obligation. ABCL alleges that, from early 2018, Hallett
has not purchased its cement exclusively from ABCL. It alleges that Hallett,
together with other named respondents, entered into arrangements to circumvent
the exclusivity obligation by procuring cementitious material in large shipments
of two tonne bags. Hallett filed a defence denying ABCL’s claim on the ground,
inter alia, that the bagged cement, even of that weight, was not bulk cement
material. On 14 February 2020, Hallett filed a cross claim for breach of the most
favoured customer term.
4 On 17 May 2021, I gave Hallett permission to replead its proposed cross
claim. Both parties have since revised their pleadings.
5 This is an application by Hallett further to amend the cross claim to include
claims for breaches of the 2008 CSA in respect of the supplies of cement to Boral
Ltd and or Boral Resources (SA) Ltd and their related entities (Boral), Hanson
Australia Pty Ltd (Hanson), and Exact Contracting Services Pty Ltd (and its related
entities) (Exact Mix).
6 ABCL contends that Hallett should not be permitted to make those claims in
respect of the 2008 CSA on the grounds that:
• The allegations pleaded are factually hopeless and/or are bound to fail.
• The claims are factually distinct from the claims pursued for breach of the
2014 CSA.
• The pleaded claims are statute barred and there is no prospect of an extension
of time being granted.
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[2024] SASC 51 Kourakis CJ
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• ABCL would be prejudiced if permission were granted, because discovery
going back over 10 years would be burdensome; documents prior to
August 2019 are available in hard copy only; and many of the corporate
officers who may be able to give relevant evidence have left and two of them
are now deceased.
• Responding to the new pleas would disrupt ABCL’s trial preparation for the
trial for eight weeks on the 2014 CSA which is listed to appear on
12 August 2024.
Doomed-to-Fail Abuse
7 It is convenient to deal first with the principles which are properly invoked
by the first ground of objection. I observe first that ABCL’s objection does not
raise any breach of UCR 64.2 of the Uniform Civil Rules 2020 (SA) (UCRs). The
objection is, in effect, that the proposed pleading does not disclose a reasonable
cause of action or is an abuse of process. In that respect, UCR 70.3 empowers the
Court to strike out a claim or pleading on the grounds that:
(1) The Court may strike out all or part of a Claim or a Pleading if –
(a) It does not comply with these Rules;
(b) It is frivolous, vexatious or an abuse of the process of the Court; or
(c) It does not disclose a reasonable cause of action or defence (as applicable).
(2) If the Court strikes out all or part of a document under subrule (1), it may if it thinks
fit, grant leave to file within a specified time an amended or substituted document
rectifying the matter that caused the original document to be struck out.
8 A striking out is not a final adjudication. It is an adjectival order regulating
the process by which the hearing and determination of a legal controversy is to be
governed.
9 UCR 143.1 empowers the Court to dismiss an action for failure to disclose a
proper basis:
(1) The Court may grant judgment dismissing an action on the ground that no reasonable
cause of action in the case of a claim, or basis for the application in the case of an
originating application, is capable of being disclosed.
10 A dismissal for failure to disclose a reasonable cause of action will generally
not be a final judgment because it is premised on the proceeding not presenting a
controversy for adjudication.
11 In respect of the dismissal of an action for an abuse of process, UCR 143.2
provides:
(1) The Court may grant judgment dismissing an action on the ground that it is frivolous,
vexatious or an abuse of process of the Court.
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12 Again, a dismissal for an abuse of process is generally not a final adjudication
because, of its very nature, it is a refusal to allow the applicant to avail itself of the
Court’s adjudicative authority.
13 In an application to strike out a pleading or action, or to refuse permission to
amend a pleading for failure to disclose a cause of action, it is the coherence of the
pleading and whether it discloses a reasonable cause of action which is put in issue.
That may require a consideration of the documents on which the pleading
expressly relies, but, unlike the hearing and determination of a claim, in
accordance with the standard processes of the Court, or an application for summary
judgment, the application does not call for an evidence-based adjudication of a
legal controversy.
14 On an application to strike out a claim on the ground that is frivolous,
vexatious, or an abuse of process, evidence as to a collateral purpose may be
necessary. However, again, to a large extent, whether or not there is a legitimate
purpose will largely be determined on the pleadings, including the relief claimed.
An abuse of process might also be established by a failure properly to prosecute a
claim in accordance with the rules of the Court. However, relevantly to this
application, it may also be an abuse of process if the material facts pleaded by a
party to support a claim could not, taken at their highest, make out the pleaded
claim. If the very facts and circumstances pleaded by an applicant fail to disclose
a reasonable foundation for the cause of action, it would follow that the action is
not tenable unless evidence of the missing facts and circumstances supporting the
claims might be discovered through the Court’s interlocutory processes. Such an
action is a fishing expedition and, therefore, an abuse of process of the Court. The
proper remedy, if any, available to a party in that position, is an application for
pre-action discovery or third-party discovery.
15 The following discussion in the judgment of Doyle J in Adelaide Brighton
Cement Ltd v Hallett Concrete Pty Ltd provides a useful metaphor:1
[25] In my reasons of 8 May 2020, I commenced by observing that I did not think that
the late timing of the proposed counterclaim was a significant matter, given the
absence of any evidence of time-related prejudice. However, I said that it remained
to consider the merits of ABCL’s pleading complaints, because if the deficiencies
were significant, then this might have inclined me to refuse an extension of time to
file the proposed counterclaim. Focussing upon the complaint that the breadth of the
pleaded claim meant that it was unsustainable and/or involved a fishing expedition,
I summarised the applicable principles in the following terms.
[26] It is true that courts routinely permit parties to plead cases with full particulars not
provided until after discovery. Whether that is appropriate in a given case depends
upon the circumstances of the case; it is a matter of fact and degree.
[27] On the one hand, courts should not allow a party without a tittle of evidence to make
a broad allegation with the hope that by ransacking the other party’s documents
through the discovery process which the allegation generates, they will find a case.
1 (2020) 137 SASR 117, 124-5 [25]-[29].
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On the other hand, a party does not need to know, and indeed often will not know,
every detail of the claim they wish to pursue. They must have a reasonable basis for
making their claim, but this basis may rely upon inferences that can properly be
drawn from the limited information available to them prior to discovery. They may
then plead a case based upon inference, the precise ambit of which will fall to be
articulated with more precision once discovery has taken place.
[28] The former is often described as ‘mere’ fishing, or impermissible fishing. To stay
with the fishing analogy, the former involves a situation where the party is in reality
speculating as to the existence and location of the fish it hopes to catch, and is in
effect utilising the court’s processes to trawl for those fish. The latter involves a
situation where the party has a sound basis for inferring the existence of the fish it
wishes to catch, but cannot be precise about the detail of the fish it expects to catch.
It involves a more focussed use of the court’s processes.
[29] Applying those principles to Hallett’s proposed counterclaim, I concluded:
The issue is finely balanced, but ultimately I have concluded that Hallett’s pleading
discloses a sufficient basis for the pleading to be filed in its proposed form. I
consider that there is sufficient substance to the inferential case that Hallett has
pleaded and wishes to pursue that it is appropriate for it to file its counterclaim, with
an expectation that its precise ambit will be the subject of refinement, through
particularisation or amendment, once discovery has been undertaken. That said, I
am conscious of the burden discovery may impose upon ABCL, and will expect
Hallett to engage constructively in relation to how that task may be defined and
confined so as to ensure that it does not become oppressive.
16 I accept Hallett’s contention that the assessment of the sustainability of its
pleadings, in the sense that they disclose a reasonable cause of action and are not
an abuse, is not to be determined on the yet-to-be-tested evidence put on by ABCL,
denying the pleaded facts or the claimed inferences. To approach the matter in
that way would be to elide the distinction between a summary judgment
application on the one hand and the striking out of a pleading or the dismissal of a
claim on the other. The Court is not in a position on an application to amend a
pleading to make findings of fact of that nature. The question for the Court is
whether the pleading is tenable, having regard only to such extraneous material
identified by the pleading and which is necessary properly to understand it.
17 Hallett has pleaded that certain inferences can be drawn from the facts it has
pleaded. The essential question is whether the pleaded facts and circumstances
would, if proved, make out the pleaded cause of action. Even though I doubt that
it is necessary to plead an inference expressly where the pleaded facts are
circumstantial, the question is whether the inference which can rationally be drawn
from the pleaded factual circumstances could establish the claim.
The 2008 CSA
18 I next turn to the particular claims which Hallett seeks leave to add to its cross
claim.
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[2024] SASC 51 Kourakis CJ
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19 The term of the 2008 CSA which Hallett alleges was breached is clause 9.3:
9.3.1 The Seller warrants that at any point in time after 31 May 2008 the Net Prices will
be the same as the prices it charges Other SA Customers which purchase a Like
Volume of the relevant Product for use and consumption in South Australia.
9.3.2 For the purposes of clause 9.3.1 above:
(a) “Other SA Customers” means any commercial entity or buying group that
collectively is of a similar size to the Buyer in South Australia and purchases
cement products from the Seller; and
(b) “Like Volume” means the volume of the relevant Product that is comparable
to that taken by the Buyer under this Agreement.
9.3.3 The Seller further warrants that any changes made to its wholesale list prices or
rebates during the term of this Agreement will not alter the relativity between the
Buyer’s net prices and the net prices of Product supplied by the Supplier to the major
concrete producers in South Australia.
20 Clauses 9.3.1 is hereafter referred to as the Price Warranty and clause 9.3.3
as the Price Relativity Warranty.
21 The ‘Product’ is defined by clause 1 to mean bulk cementitious material
including (but not limited to) type GP cement, which is in turn given the meaning
that it bears in Australian Standard 3972-1987. Type SL cement is not expressly
defined.
22 The width, indeed, protean nature of the expressions ‘Like Volume’, ‘similar
size’, and ‘major concrete producers’ renders the proper construction of clause 9.3
problematic. Plainly enough, its construction may be affected by evidence of the
nature of the cement and concrete markets in South Australia at the time. It may
be possible to group ABCL’s customers by reference to the spread of buyer
volumes. It may also be possible to group customers by reference to the size of
the entity or by capitalisation, number of batching plants or otherwise. An
alternative approach may be to make a mathematical assessment, in the abstract,
for example, by adopting a rule that a variation of more than two, three, or four
hundred per cent is or is not a like volume or size. It might also be arguable that
those expressions take their meaning textually from the concept of a major
concrete producer in clause 9.3.3, leading to a binary distribution between major
and minor producers. The resolution of the proper construction of clause 9.3 must
await the trial. No application in the nature of a construction summons is before
me.
23 Hallett seeks permission to make claims against Boral for breach of the 2008
CSA in respect of supplies by ABCL to Boral:
64 During the 2008 CSA Period, Boral purchased substantial volumes of Type GP
Cement from ABCL, which were not paid for in cash but by way of swap, whereby
ABCL would supply Boral with Type GP cement in South Australia and in return
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[2024] SASC 51 Kourakis CJ
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Boral would supply ABCL with an equivalent amount of Type SL cement from its
plant in Berrima, New South Wales (2008 period swaps).
Particulars
Pending further discovery by ABCL of the contractual arrangements between ABCL
and Boral during the 2008 CSA Period, the existence of the swap arrangement is to
be inferred from:
64.1 records discovered by ABCL in the form of a spreadsheet referenced
ABL.1525, which record the purported supply by ABCL of Type SL Cement
in the period from July 2012 to July 2014, referred to as “SL Ex Berrima Bulk”
which is a reference not to any facility owned by ABCL or its parent ABL,
but to a cement manufacturing plant owned by Boral in Berrima NSW;
64.2 the absence in ABL.1525 of records of the supply of Type GP cement to Boral
in South Australia, notwithstanding that ABCL supplied substantial volumes
of GP cement to Boral in South Australia during the period July 2012 to July
2014;
64.3 the existence of a swap agreement between ABCL and Boral involving the
swap of GP cement supplied in South Australia for SL cement supplied by
Boral from its Berrima plant in later years, as pleaded in paragraph 39.3 above.
65 During the 2008 CSA Period, Boral was within the scope of the definition of “Other
SA Customers” in clause 9.3.2(a) of the 2008 CSA as:
65.1 it was a commercial entity;
65.2 it was of similar size to Hallett in South Australia having regard to the extent
of its operations and the volume of Product that it purchased from ABCL
pursuant to the 2008 period swaps; and
65.3 it purchased cement products from ABCL.
66 During the 2008 CSA Period, Boral purchased a volume of relevant Product that was
comparable to the volumes taken by Hallett under the 2008 CSA and therefore within
the scope of the definition of “Like Volume” in clause 9.3.2(b) of the 2008 CSA.
Particulars
66.1 During the period from July 2012 to June 2014, the volumes of SL Cement
swapped pursuant to the 2008 period swaps, compared to the volumes of Type
GP Cement supplied by ABCL to Hallett were as follows:
Month Boral Hallett
July 2012 744.58 1,838.20
August 2012 776.10 2,414.55
September 2012 723.20 2,682.00
October 2012 1,544.26 2,281.05
November 2012 1,327.54 2,549.65
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December 2012 529.66 1,661.10
January 2013 510.30 1,953.90
February 2013 411.54 1,498.10
March 2013 532.78 1,313.65
April 2013 386.92 1,772.05
May 2013 695.74 647.15
June 2013 637.10 753.35
July 2013 1,237.28 2,625.90
August 2013 487.86 3,405.35
September 2013 1,027.60 910.65
October 2013 968.50 1,343.70
November 2013 720.28 2,648.25
December 2013 774.14 1,923.85
January 2014 388.11 1,261.20
February 2014 530.38 209.45
March 2014 636.54 2,726.80
April 2014 635.36 3,101.60
May 2014 1,014.92 3,405.35
June 2014 857.92 2,625.90
66.2 It is to be inferred from the above table that the volumes of Type GP Cement
swapped by ABCL to Boral and supplied to Hallett were comparable
throughout the 2008 CSA Period.
66.3 Further particulars will be provided following further discovery by ABCL of
records of its supplies to Boral in the 2008 CSA Period from its SAP system,
namely of documents of the same nature of ABL.1525 and ABL.0481.
67 In the premises pleaded in paragraphs 65 and 66 above, sales by ABCL to Boral of
Type GP Cement were subject to the Price Warranty.
68 In breach of the Price Warranty, ABCL charged to Hallett a higher Net Price for
equivalent Product than the price charged to Boral, in that:
68.1 the amount charged to Boral for Type GP Cement that was supplied in South
Australia was the equivalent volume of Type SL cement supplied by Boral in
NSW;
68.2 the amount charged by ABCL to Boral for the purpose of the 2008 CSA is to
be quantified by reference to ABCL’s cost of production for the Type GP
cement supplied to Boral or alternatively Boral’s cost of production for the
Type SL cement supplied to ABCL;
68.3 pending further discovery by ABCL of the contractual arrangements between
ABCL and Boral, and ABCL’s cost of production (being documents of the
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[2024] SASC 51 Kourakis CJ
8
nature of ABL.1881 but extending to the 2008 CSA Period), Hallett cannot
particularise the cost of production for ABCL for Type GP Cement or for
Boral for Type SL Cement in the period from June 2008 to June 2014, but it
can be inferred that such price was consistently lower than the price charged
to Hallett for Type GP Cement, and assuming an annualised, year to date cost
of production from 2014 of $87.43, Hallett’s loss totalled $11,233,395.99.
69 In the alternative to paragraphs 65 to 68 above, if (which is denied) the supplies by
ABCL to Boral were not within the scope of the Price Warranty, then:
60.1 Boral was throughout the 2008 CSA Period a major concrete producer in
South Australia;
69.2 the effect of the 2008 period swap was to alter the relativity of the net prices
charged to Hallett to the net prices charged to Boral when compared to the
extent (if any) that Boral paid in cash at ABCL’s published prices for Type
GP Cement supplied to it;
69.3 the 2008 period swap was accordingly in breach of the Price Relativity
Warranty.
70 By reason of ABCL’s breach of the Price Warranty or alternatively the Price
Relativity Warranty, Hallett has suffered loss and damage, being the difference
between the Net Price charged by ABCL to Hallett and the price that was promised
to Hallett by the Price Warranty or alternatively the Price Relativity Warranty, by
reference to supplies to Boral, which will be further particularised following further
discovery by ABCL and/or Boral of their costs of production (as detailed in
paragraph 68.3).
24 In its submissions, Hallett lays out the foundations of its claims against Boral
under the 2008 CSA in the following terms:
• Boral and ABCL had swap arrangements in the period of the 2008 CSA, the
effect of which was that ABCL was supplied with SL cement by Boral from
its plant in Berrima New South Wales. In return for which ABCL supplied
equivalent tonnages of cement to Boral in South Australia.
• Discovered document ABL.1525 on its face lists all invoices by ABCL to its
customers in the period 2012 to 2014 and records numerous supplies to
ABCL related entities in New South Wales from ABCL’s Birkenhead plant
but with the description that the supply made SL cement ‘Ex-Berrima bulk’.
The existence of a swap arrangement between 2012 and 2014 can be inferred
from those invoices, in that, ABCL was recording in its own records as its
own sales delivery, product from Borals plant in Berrima.
• It is likely that the 2016 swap arrangement for cement had its origins in
pre-existing arrangements made under the 2008 CSA.
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• ABL’s2 business documents in the nature of board papers refer to a national
suite of agreements between ABL and Boral encompassing all the main land
states and the Northern Territory.
• The arrangement breached the Price Warranty and the Price Relativity
Warranty of the 2008 CSA.
25 Hallett claims that its pleading makes it clear to ABCL the proper basis of its
inferential case and gives proper notice of the case to be met.
26 It can be seen from the proposed pleading, and the submissions made in
support of the amendment, that the indispensable intermediate fact on which
Hallett’s claim is founded is the existence of a swap arrangement, the effect of
which is the supply of cement at the cost of production. However, the only base
facts pleaded in support of that conclusion is the physical supply of cement from
Boral’s plant in Berrima and the subsequent existence of a swap agreement.
27 ABCL’s response is largely found in paragraphs [19] to [40] of the
20th affidavit of Thomas Dachs affirmed on 30 January 2024 (Dachs 20). Those
paragraphs effectively deny the existence of a swap arrangement. The denial is
based in part on ABCL’s own discovery of supply agreements with Boral, which
do not include any supply agreements pre-dating 2016. ABCL also relies on the
hearsay assertion in Dachs 20 repeating the self-serving statements of an executive
of ABCL that there was no swap agreement prior to 2016. Mr Dachs also asserts
that ABCL has discovered all records of supply of GP cement to all Boral entities
for the period of July 2012 to June 2014. He explains that the swap arrangement
from 2016 was accounted for within ABCL’s records by the creation of ‘customer
credit memos’ and asserts that there are no such customer credit memos created
before 2016.
28 The evidence set out in Dachs 20 foreshadows ABCL’s defence, but it cannot
pre-empt the hearing and determination of Hallett’s claim if it is properly pleaded.
The issue before me is whether the pleading is tenable and not an abuse of process.
29 However, Mr Dachs’ affidavit does properly provide context to the
discovered document ABL.1525 on which Hallett relies. ABCL contends that it
should be read together with the billing documentation in ABL.1526. Those
records contain some 46 credits allowed against invoices sent to Boral. Of those,
34 credits were for returns. All 12 remaining credits were issued in either August
2012 or June 2013 and record the reason for the credit being incorrect, pricing,
product availability or product quality. There is no credit referable on its face to a
swap arrangement.
30 ABCL also takes issue with the contention that there is a tenable case of
breach in respect of the Price Warranty. Dachs 20 sets out a table in [35] which
2 ABL is the acronym for the parent company of ABCL.
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shows that, in most months, Boral was supplied two to three times more GP cement
than the quantities as pleaded by Hallett in [66.1] of the proposed cross claim. I
observe here that the table in paragraph [66.1] sets out the quantities of SL cement
supplied by Boral for Hallett’s use in New South Wales. Hallett claims that those
quantities were offset against Boral’s tonnages of GP cement purchased in South
Australia. The table in Dachs 20 sets out the total supplies of GP cement by Hallett
to Boral in South Australia, a small proportion of which was offset by the sales of
SL cement in New South Wales. In addition, a table in [38] of Dachs 20 sets out
the difference in the prices charged by ABCL to Hallett and Boral in the periods
July 2012 to March 2013, and April 2013 to June 2014. Hallett was charged $189
as against $188.16 charged to Boral in the first period, and in the later period
Hallett was charged $195 as against $194.16 charged to Boral.
31 I accept Hallett’s contention that those parts of Dachs 20 foreshadow
evidence which ABCL will adduce in defence of Hallett’s claim if the pleading is
otherwise tenable. They are therefore matters for trial.
32 On the allegations of whether a swap arrangement breached the Price
Warranty, Hallett contends that the factual issue as to whether Boral is a similar
size to Hallett and whether the volumes supplied to Boral were like volumes are
matters for trial given the breadth of those terms. Further, and in the alternative,
Hallett contends that any swap arrangement must have breached the Price
Relativity Warranty. I accept Hallett’s contention that they are matters for trial
which can only be determined on an analysis of all of the invoices. Moreover,
ABCL’s defences that they were not like volumes or that the price differential was
immaterial can only be determined against a proper construction of clause 9.3 of
the 2008 CSA.
33 Be that as it may, the claim against Boral for breach of the 2008 CSA
critically rests on the existence of a swap arrangement. No more can be inferred
from the fact that Hallett purchased or procured, in some way, cement from Boral
in New South Wales for on-supply to its own customers. That bare fact says
nothing as to whether the purchase was by way of barter or swap on the one hand,
or for monetary consideration on the other. No inference can be drawn, from the
existence of a swap arrangement in 2016, that there was the same or a similar swap
arrangement in 2012, or at any time after 2008. There is no inherent quality or
nature in commercial arrangements generally, or in arrangements of the particular
kind alleged by Hallett that, if found to exist at one point in time, are likely to have
existed throughout the entire period in which the parties were engaged in
commerce, or are likely to continue to exist for so long as the entities continue to
trade with each other. Whether or not such commercial arrangements are entered
into, their timing and duration necessarily depend on a wide range of disparate
considerations which fluctuate greatly over time, including the nature of the
market, competitive tensions, and taxation considerations.
34 If I were to make use of the metaphor, taken from the judgment of Doyle J
referred to at [15] above, the plea is a fishing expedition in a rather arid sea with
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no sign of marine life to excite the angler. To speak more directly, in legal terms,
the foundation of the claim is speculative. The pleaded facts could not make out a
reasonable cause of action. There is no reasonable basis to the claim. It is an abuse
of process.
35 I refuse Hallett’s permission to plead the claim against Boral in respect of the
2008 CSA.
Hanson
36 The breach of the 2008 CSA by ABCL in respect of Hanson is pleaded as
follows:
71 During the 2008 CSA Period, Hanson purchased substantial volumes of GP Cement
from ABCL.
72 Paragraphs 36.1 to 36.10 above are repeated as to the relationship between Cement
Australia, Hanson and Holcim on the one hand, and ABCL on the other.
73 During the 2008 CSA Period, Hanson was within the scope of the definition of
“Other SA Customers” in clause 9.3.2(a) of the 2008 CSA as:
73.1 it was a commercial entity;
73.2 it was of similar size to Hallett in South Australia having regard to the extent
of its operations and the volume of Product that it purchased from ABCL; and
73.3 it purchased cement products from ABCL.
74 During the 2008 CSA Period, Hanson purchased a volume of relevant Product that
was comparable to the volumes taken by Hallett under the 2008 CSA and therefore
within the scope of the definition of “Like Volume” in clause 9.3.2(b) of the 2008
CSA.
Particulars
74.1 During the period from July 2012 to June 2014, the volume of Type GP
Cement purchased by Hanson, compared to the volume of Type GP Cement
purchased by Hallett, were as follows:
Month Hanson Hallett
July 2012 2,403.75 1,838.20
August 2012 3,432.05 2,414.55
September 2012 3,975.85 2,682.00
October 2012 4,729.65 2,281.05
November 2012 3,294.70 2,549.65
December 2012 2,433.45 1,661.10
January 2013 2,584.00 1,953.90
February 2013 3,457.25 1,498.10
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March 2013 3,631.10 1,313.65
April 2013 3,296.00 1,772.05
May 2013 4,607.15 647.15
June 2013 3,228.60 753.35
July 2013 4,517.90 2,625.90
August 2013 4,377.95 3,405.35
September 2013 4,724.40 910.65
October 2013 4,462.80 1,343.70
November 2013 3,998.85 2,648.25
December 2013 3,163.50 1,923.85
January 2014 1,950.45 1,261.20
February 2014 3,262.65 209.45
March 2014 4,481.40 2,726.80
April 2014 3,804.65 3,101.60
May 2014 4,436.15 3,405.35
June 2014 3,873.25 2,625.90
74.1 Further particulars will be provided following further discovery by ABCL of
records of its supplies to Hanson in the 2008 CSA Period from its SAP system,
namely of documents of the same nature of ABL.1525 and ABL.0481.
75 In the premises pleaded in paragraphs 71 to 74 above, sales by ABCL to Hanson of
Type GP Cement were subject to the Price Warranty.
76 In breach of the Price Warranty, during the 2008 CSA Period, ABCL provided a
rebate in respect of supplies of Type GP Cement to Hanson in respect of supplies to
its Mount Gambier facility, which meant that the price charged to Hanson for Type
GP Cement for use in South Australia was less than the price charged to Hallett, the
best particulars of which Hallett can currently provide pending further discovery
from ABCL of the contractual arrangements between ABCL and Hanson, the
customer invoice reports from the SAP system relating to the 2008 CSA period of
the same nature as ABL.1525, ABL.0481 and COPA reports of the same nature as
ABL.0482 are as set out in Schedule 11.
77 In the alternative to paragraphs 75 to 76 above, if (which is denied), supplies by
ABCL to Hanson were not within the scope of the Price Warranty, then:
77.1 throughout the 2008 CSA period, Hanson was a major concrete producer
within South Australia, such that supplies by ABCL to Hanson were subject
to the Price Relativity Warranty;
77.2 the prices charged by ABCL to Hanson in respect of supplies to Mount
Gambier altered the relativity of the Net Price charged to Hallett and the Net
Price otherwise ordinarily charged by ABCL to Hanson for supplies to
Hanson.
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78 By reason of ABCL’s breach of the Price Warranty or alternatively the Price
Relativity Warranty, Hallett has suffered loss and damage, being the difference
between the Net Price charged to Hallett and the price that was promised to Hallett
by the Price Warranty or alternatively the Price Relativity Warranty, which Hallett
will particularise further after further discovery by ABCL of documents of the type
identified in paragraph 76, but as particularised in Schedule 11 hereto totalled over
$1.3 million in respect of the period from July 2012 to June 2014.
37 The entity(ies) ‘Cement Australia’ referred to in paragraph [72] is Cement
Australia Pty Ltd and the Cement Australia partnership and its related entities as
defined in [37.2] of the Cross Claim. Moreover, [37.3A] pleads that Cement
Australia Pty Ltd acted as the agent of the Cement Australia partnership, of which
Hanson was a member.
38 ABCL’s contention is that the customer for the purposes of the pricing
warranty was Cement Australia and not Hanson. In its submissions in response,
Hallett claims that Cement Australia was acting as the disclosed agent of Hanson.
However, that material fact is not pleaded. It should be. That deficiency in the
pleading should be attended to so that the pleading of agency in respect of the
2014 CSA is repeated in respect of the 2008 CSA. It is not in itself a reason to
refuse permission to amend. The pleaded relationship between Cement Australia
and Hanson in respect of the 2014 CSA is such that the plea of agency in respect
of the 2008 CSA is tenable.
39 ABCL also relies on evidence it has adduced on this application to the
relative quantities of cement supplied to Cement Australia and Hanson on the one
hand, and Hallett on the other. If Cement Australia is the relevant comparator,
Hallett’s annual purchases were only about one-fifth of the quantities supplied by
Cement Australia in the financial years between 2013 and 2014. It contends that,
in any event, Hanson was nonetheless part of a buying group as defined in
clause 9.3.2(a) of the 2008 CSA which included Cement Australia. In those
circumstances, the volume again was not a like volume.
40 I explained in [22] above the problematic question of construction posed by
clause 9.3 of the 2008 CSA and that the delineation of what is a like volume may
be affected by the market context in which Hallett and ABCL were operating.
Whether or not Hanson was part of the Cement Australia buying group is also a
matter of construction which will depend on the sales evidence and market context.
41 I allow Hallett to plead the claims against Hanson in respect of the 2008 CSA
subject to Hallett expressly pleading that Hanson was the disclosed principal of
Cement Australia.
Section 48 extension of time claim
42 By its proposed amendments, Hallett seeks an order pursuant to s 48 of the
Limitation of Actions Act 1936 (SA) (the Limitation Act) extending the time in
which it can bring its claims; Hallett pleads:
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85 To the extent necessary, Hallett seeks an extension of time pursuant to s.48 of the
Limitation of Actions Act 1936 (SA) in respect of the matters pleaded in paragraphs
55 to 81 above on the basis that:
85.1 facts material to Hallett’s case were not ascertained by it until some point after
the expiration of the applicable limitation period and these claims were made
by amendment within 12 months after the ascertainment of those facts by
Hallett;
85.2 further or in the alternative, that Hallett’s failure to institute the actions within
the period of limitation resulted from representations or conduct of ABCL and
was reasonable in view of those representations or that conduct and any other
relevant circumstances; and
85.3 in all of the circumstances it is just to grant the extension of time.
Particulars
85.3.1 Pursuant to orders of Doyle J made on 15 April 2020 a confidentiality
regime was established in respect of discovery made by ABCL in these
proceedings, whereby Hallett and its officers were restricted from
having access to discovered documents marked confidential by ABCL,
or information derived from those documents (including pleadings),
with access to those documents restricted to Hallett’s solicitors, counsel
and experts who had provided undertakings to the Court to keep those
documents and their contents confidential, including from Hallett and
its officers.
85.3.2 ABCL’s discovery in these proceedings contains information relevant
to ABCL’s compliance with the 2008 CSA, including documents
relevant to the prices that it charged to other customers in the period
from 2012 to 2014, and in the period from 2014 to 2020. These
documents include:
(A) the following documents marked confidential by ABCL:
(I) the document ABL.1525 which provides records of prices
charged by ABCL in the period from July 2012 to June
2014;
(II) documents relating to the prices charged, and contractual
arrangements with, customers in the period July 2014 to
April 2020; and
(III) documents relating to ABCL’s cost of production.
(B) the pleadings filed in these proceedings that refer to confidential
information, including a complete copy of the Cross Claim –
Revision 4.
(Together, the Confidential Documents).
85.3.3 Representatives of Hallett have only been able to review complete
copies of the Confidential Documents since 4:00pm on 6 October 2023,
following the Court of Appeal dismissing ABCL’s appeal against
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orders varying the confidentiality regime to permit representatives of
Hallett to view the Confidential Documents on strict conditions.
85.3.4 The Confidential Documents disclose facts material to Hallett’s case in
respect of overcharging by ABCL prior to 2014 in breach of the 2008
CSA as to:
(A) the existence of Hallett’s cause of action for breach of the 2008
CSA; and
(B) the assessment and quantum of Hallett’s loss for breach of the
2008 CSA, by disclosing information including prices charged to
and arrangements with other customers by ABCL in the period
from July 2012 to June 2014, and in the period July 2014 to April
2020 which were not previously known to Hallett.
85.3.5 Further:
(A) During the 2008 CSA period and Relevant Period, ABCL kept
the prices that it charges to other customers confidential and did
not disclose the same to Hallett,
(B) At no time prior to the disclosure of the Confidential Documents
to Hallett’s representatives at 4:00pm on 6 October 2023 had
ABCL disclosed to Hallett that it was in breach of the Price
Warranty or Price Relativity Warranty or any other pricing
obligation, under any iteration of the CSA. In these proceedings,
ABCL denies any breach of its obligations.
(C) ABCL resisted the Confidential Documents being provided to
Hallett’s representatives throughout the course of these
proceedings, including by appealing to the Court of Appeal
against orders to permit Hallett’s representatives from viewing
those documents to be able to provide instructions as to matters
including the pleading of the counterclaim.
(D) ABCL did not disclose during the 2008 CSA Period, Relevant
Period or at all that it had breached the Price Warranty or Price
Relativity Warranty.
(E) In circumstances where, as pleaded in paragraphs 18 and 58
above, ABCL was obliged at its own expense to do all that is
reasonably necessary to give effect to the 2008 CSA, ABCL was
under a duty to at least inform Hallett of any breach by ABCL of
the Pricing Warranty, or alternatively the Price Relativity
Warranty, but it did not do so.
(F) Hallett’s failure to institute an action in respect of breach of the
2008 CSA prior to any expiry of any applicable limitation period
was reasonable in view of ABCL’s conduct.
85.3.6 It is in all of the circumstances pleaded in paragraphs 82.3.1 to 82.3.5
above just to grant Hallett an extension of time to the extent necessary.
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43 Section 48 of the Limitation Act relevantly provides:
48—General power to extend periods of limitation
(1) Subject to this section, where an Act, regulation, rule or by-law prescribes or limits
the time for—
(a) instituting an action; or
(b) doing any act, or taking any step in an action; or
(c) doing any act or taking any step with a view to instituting an action,
a court may extend the time so prescribed or limited to such an extent, and upon such
terms (if any) as the justice of the case may require.
…
(3) This section does not—
…
(b) empower a court to extend a limitation of time prescribed by this Act unless
it is satisfied—
(i) that facts material to the plaintiff’s case were not ascertained by him
until some point of time occurring within twelve months before the
expiration of the period of limitation or occurring after the expiration
of that period and that the action was instituted within twelve months
after the ascertainment of those facts by the plaintiff; …
and that in all the circumstances of the case it is just to grant the extension of
time.
(3a) A fact is not to be regarded as material to the plaintiff’s case for the purposes of
subsection (3)(b)(i) unless—
(a) it forms an essential element of the plaintiff’s cause of action; or
(b) it would have major significance on an assessment of the plaintiff’s loss.
…
(3b) In determining whether it is, in all the circumstances of a case, just to grant an
extension of time, the court should have regard to—
(a) the period of extension sought and, in particular, whether the passage of time
has prejudiced a fair trial; and
(b) the desirability of bringing litigation to an end within a reasonable period and
thus promoting a more certain basis for the calculation of insurance premiums;
and
(c) the nature and extent of the plaintiff’s loss and the conduct of the parties
generally; and
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(d) any other relevant factor.
(4) Where an extension of time is sought pursuant to this section in respect of the
commencement of an action, the action may be instituted in the normal manner, but
the process by which it is instituted must be endorsed with a statement to the effect
that the plaintiff seeks an extension of time pursuant to this section.
…
44 The 11th affidavit of Michael James O’Donnell (O’Donnell 11), the principal
solicitor for Hallett, was filed in support of the application to amend the cross
claim. Mr O’Donnell also deposes to the recent disclosure of documents to Hallett
which provided a firm basis to infer breaches of the 2008 CSA:
[50] In addition to the matters in paragraph 48, further material was identified following
the variation to the Confidentiality Regime and the New Access Regime being
established which relate to the period that the 2008 CSA was in effect (2008 CSA
Period), which either confirm, or provide a firm basis to infer separate breaches by
ABCL of the 2008 CSA. In summary, the additional information includes:
(a) information which demonstrates breaches by ABCL in and around mid-2014,
including in relation to:
(i) Exact Contracting Services Pty Ltd and/or Exact Mining and/or Exact
Mining Services and/or Exactmix Pty Ltd and/or their related entities
(Exact Mix);
(ii) Cement Australia Holdings Pty Ltd and/or Cement Australia Pty Ltd
and/or the “Cement Australia Partnership”, as that term is used in the
Cross Claim – Revision 4, and their related entities (Cement Australia);
and
(iii) Boral Limited and/or Boral Resources (SA) Limited and/or their related
entities (Boral),
which information is proximate to the 2008 CSA Period;
(b) documents which were created during the 2008 CSA Period that confirm the
prices charged by ABCL to at least Exact Mix and Hanson for the period 2012
to 2014, including ABL.1525, were lower than the prices being charged by
Hallett during that same period, enabling the ascertainment of the likely
quantum of Hallett’s 2008 CSA Claim; and
(c) other documents which confirm the arrangements in place between ABCL and
its Customers during the 2014 CSA period, which documents give rise to
inferences that similar arrangements were in place during the 2008 CSA
period, including in particular the swap arrangements with Boral.
[51] In respect of the matters summarised in paragraph 50 regarding 2008 CSA Claim,
relevant information in ABCL’s discovery (including information which only
became available to Messrs Pickard and Hosking and following the variation to the
Confidentiality Regime) included:
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(a) an unredacted copy of the Cross Claim, including details of the prices charged
by ABCL to Exact Mix during the Relevant Period (and in particular, in 2014)
and the allegation advanced by Hallett in connection with the swap agreement
with Boral in paragraph 39.5;
(b) information regarding the contractual arrangements and prices charged by
ABCL to Exact Mix in the Relevant Period, as is explained in paragraphs 172
to 181 of 18 Robinson, including relevantly to the 2008 CSA Claim, the prices
being charged in 2014;
(c) information regarding the arrangements and pricing between ABCL and
Cement Australia (and Hanson/Holcim). As explained in paragraphs 211 to
217 of 18 Robinson, prior to this time, the Respondents’ Representatives had
only been able to access a sub-set of the information relating to these
customers;
(d) information regarding the arrangements and pricing between ABCL and
Boral. Relevantly to the 2008 CSA Claim, the information in ABCL’s
discovery included:
(i) information regarding the contractual arrangements between ABCL
and Boral in the Relevant Period, including the precise terms of the
swap agreements in place between the parties in the Relevant Period;
(ii) such information enabled the core allegation in paragraph 39.5 of the
Cross Claim – Revision 4 regarding the effect of the Swap Agreements
in place to be advanced. As explained in Robinson 18, while some
information which indicated a swap was able to be provided as part of
the tutoring exercise, the Respondents’ solicitors remained constrained
in articulating the allegations and effect of the swap arrangements that
were being advanced in the Cross Claim for the earlier period of time;
and
(iii) information regarding ABCL’s costs of production, which is contended
by Hallett to be the relevant Comparison Price applicable for the
purposes of the swap arrangements between Hallett and Boral;
(e) a complete copy of ABL.1525, which is a Customer Invoice Report generated
by ABCL for all customers supplied with cementitious products by ABCL
during the period 1 July 2012 to 30 June 2014. It discloses the prices charged
by ABCL to these customers during this period, which is when the 2008 CSA
was in effect. Based on this document, Hallett has been able to confirm that
the prices charged by ABCL to Exact Mix and Hanson were lower than the
prices charged to Hallett, and can infer that swap arrangements with Boral
were in place during this period as is pleaded in the Proposed Amended Cross
Claim. Such information has enabled Hallett to ascertain the potential
quantum of the 2008 CSA Claim. In respect of this document, and for
completeness, I observe that:
(i) Access was sought by the Respondents to ABL.1525 in the various
iterations of its Confidentiality Application. ABL.1525 was one of the
documents in respect of which a filtered copy was made available by
ABCL on 29 November 2022 as part of the “tutoring exercise” to which
I refer in paragraph 24 above. The document was filtered such that the
information relating to mining customers, including Exact Mix, was
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deleted in the version made available by ABCL to the Respondents’
Representatives.
(ii) The tutoring exercise was undertaken for a limited purpose and there
were significant restraints regarding the ability of the Respondents’
Representatives to provide advice and instructions in relation to the
documents provided by ABCL, and that notwithstanding that exercise,
the Respondents were significantly prejudiced in the conduct of the
matter including as outlined at paragraph 128 of 18 Robinson.
[52] A detailed summary of the nature of the information contained within the Restricted
Documents which the Respondents’ Representatives were able to access is described
in paragraphs 132 to 263 of 18 Robinson.
[53] In the circumstances outlined in paragraphs 46 to 51, Hallett has now become able
to advance a claim in respect of the 2008 CSA. Hallett was previously unable to
advance a claim in respect of the 2008 CSA as a result of:
(a) the matters identified in paragraphs 46 to 49, arising as a result of the
inferential nature of the claim originally pleaded by Hallett in respect of the
2014 CSA;
(b) the impact of the Confidentiality Regime and the restrictions on Hallett’s
ability to access materials in these proceedings until the New Access Regime
came into effect; and
(c) the impact of the progressive discovery made by ABCL in the proceedings,
which has been made progressively by ABCL’s filing of 15 lists of documents
to date, 9 of which have been filed since the most recent iteration of the cross
claim, the Cross Claim – Revision 4, was filed by Hallett.
45 The 12th affidavit of Mr O’Donnell sworn on 13 February 2024
(O’Donnell 12) supplemented O’Donnell 11 and deposed that, ambiguously, the
source of his instructions were ‘from each of Mr Pickard and Mr Hosking’.
46 Objection was taken to the admission of those parts of O’Donnell 12 on the
grounds that the affidavit did not disclose the source of the information on which
the assertion that Hallett was not previously aware of the material facts and
circumstances on which the amended claim is based. It was necessary, therefore,
to call Mr O’Donnell to give evidence of those matters.
47 Mr O’Donnell testified that he met with Messrs Mark Pickard and
Barrie Hosking of Hallett on 28 November. Also present were Hallett’s junior
counsel, Mr Kentish, and Mr O’Donnell’s colleagues, Mr Liam Cobain and
Ms Chloe Robinson. A number of ABCL’s documents were presented at the
meeting. One of those documents bore the discovery number which Mr O’Donnell
mistakenly thought was 1523, but was in fact document 1525. Mr O’Donnell
testified that Mr Pickard told him that he was not previously aware of the
information contained in that document.
48 Mr O’Donnell explained that Mr Hosking was the former chief executive of
Hallett, having completed his term in 2013. When he saw the document, he uttered
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an exclamation which indicated to Mr O’Donnell that he had not before seen the
document. He also expressly confirmed that he had not known the information
contained in the document prior to that occasion. Mr Hosking and Mr Pickard
tacitly agreed with all the statements made by the other in the course of the
discussion in the sense that there was never an occasion in which one contradicted
the other or said anything to the effect that it was not his view or his recollection.
Mr O’Donnell testified that their instructions that they had no prior knowledge of
the documents on the information contained in the documents they were viewing
were consistent. I pause here to observe that the existence of ABL.1525 is, in
itself, a material fact.
49 Thomson Geer commenced drafting the pleading after the 28 November
meeting. On 5 December, Mr O’Donnell met with Mr Hosking. Mr Kentish and
Mr Cobain were also present. They discussed an early draft of the cross claim in
respect of the 2008 CSA. They obtained further factual information from
Mr Hosking even though he was not authorised formally to instruct them.
50 On 21 December, Mr O’Donnell met again with Mr Pickard and Mr Hosking.
Chloe Robinson and Liam Cobain were also present. They received instructions
from Mr Pickard to proceed with the proposed amendments and to file
O’Donnell 11. Mr Hosking informed Mr O’Donnell that the facts asserted in the
affidavits were correct.
51 I am satisfied that the affidavits, together with Mr O’Donnell’s testimony,
establish an appropriate foundation for the interlocutory application to plead for an
extension of time pursuant to s 48 of the Limitation Act for the proposed claims
against ABCL for breaches of the 2008 CSA in respect of Hanson and Exact Mix.
52 It is not to the point that Hallett’s solicitors had access to those documents
under confidentiality regimes for a period of longer than 12 months before the
application was made. The section conditions the power to grant an extension of
time within the period of 12 months from the time at which the applicant to the
action becomes aware of the material fact(s). ABCL joined in a confidentiality
regime which restricted Hallett’s access to its discovery of documents. It is a
matter for trial whether or not the assertions of Messrs Pickard and Hosking, that
they had not seen the documents before November 2023 are believed.
53 The circumstance that the information was available to Hallett’s solicitors is
unlikely to materially affect the exercise of the discretion to grant an extension of
time in which to bring the claim materially. An application by Hallett’s solicitors
to seek a relaxation of the confidentiality regime without the instructions of Hallett
would have been problematic as a matter of professional practice. It would likely
have been opposed. Formulating the possible claim in the absence of instructions
informed by access to the documents would have been difficult.
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54 The tutoring exercise in which Hallett was allowed to engage was for the
limited purpose of testing the efficacy of finalities in the pleadings in respect of
the 2014 CSA.
55 I accept that the exercise of identifying, finding, and collating the
documentation of transactions over a decade old may not be completely successful.
However, I am not satisfied that the potential prejudice to ABCL is such that the
discretion is bound to be exercised adversely to Hallett.
56 Accordingly, the precondition to the s 48 application is properly pleaded and
is supported by the evidence. It is reasonably based and is not an abuse of process.
Disruption to trial preparation
57 I am not satisfied that allowing the amendments with respect to Hanson and
Exact Mix will obstruct the orderly progression of the action to a hearing in
August. The greater burden of preparing a defence of the claims in respect of Boral
can now be put to one side.
58 At this stage, and on the information before me, I have no reason to think that
case management orders will not allow the matter to progress to trial and so that
the claims are heard and determined in the time listed in August. Should
difficulties become apparent closer to that date, the timing of the hearing and
determination of the 2008 CSA claim can be further considered.
Conclusion
59 I grant leave to Hallett to plead its claims, with an application to extend time
pursuant to s 48 of the Limitation Act, against ABCL for breaches of the 2008 CSA
in respect of Hanson and Exact Mix.
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