Cardillo v Moreton Bay Trailer Boat Club Incorporated & Anor [ [2021] QDC 75
DISTRICT COURT OF QUEENSLAND
CITATION: Cardillo v Moreton Bay Trailer Boat Club Incorporated &
Anor [2021] QDC 75
PARTIES: PAUL ANTHONY CARDILLO
(plaintiff)
v
MORETON BAY TRAILER BOAT CLUB
INCORPORATED
(defendant)
and
JOHN CARDILLO
(defendant by counterclaim)
FILE NO: BD2243/2018
DIVISION: Civil
PROCEEDING: Application
ORIGINATING
COURT:
Brisbane District Court
DELIVERED ON: 5 May 2021
DELIVERED AT: Brisbane
HEARING DATE: 17 March 2021
JUDGE: Muir DCJ
ORDER: 1. The respondent/defendant’s oral application for a
declaration of informal service made on 17 March
2021 is dismissed.
2. The application by the defendant by counterclaim to
set aside the order for renewal of the counterclaim
made by this court on 17 August 2020 is dismissed.
CATCHWORDS: PROCEDURE – CIVIL PROCEEDINGS IN STATE AND
TERRITORY COURTS – ORDER FOR RENEWAL OF
COUNTERCLAIM – APPLICATION TO SET ASIDE
ORDER FOR RENEWAL – DECLARATION OF
INFORMAL SERVICE – BREACH OF CONTRACT –
LOSS OF RENTAL INCOME – where the respondent filed a
counterclaim against the applicant – where the applicant was
not served with the counterclaim within one year of the
counterclaim being filed – where the respondent previously
obtained an ex parte order for renewal of the counterclaim –
whether the order for renewal of the counterclaim should be
set aside under s24 Uniform Civil Procedure Rules 1999
(Qld) – whether reasonable efforts were made to serve the
counterclaim on the applicant within one year of it being filed
– whether there is another good reason to renew the
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counterclaim – where a copy of the counterclaim came into
the possession of the applicant within one year of the
counterclaim being filed – whether to exercise the discretion
to declare informal service under s117 Uniform Civil
Procedure Rules 1999 (Qld)
LEGISLATION: Uniform Civil Procedure Rules 1999 (Qld) r16(d), r24, r117,
r389, r667(2)(a)
Limitations of Action Act 1974 (Qld) s10, s38(1)
CASES: AMCI P/L v Corcoal Management P/L and Ors [2013] QSC
50
Aon Risk Services Australia v Australia National University
(2009) 239 CLR 175.
Babcock & Brown Pty Ltd & Ors v Arthur Andersen [2010]
QSC 287
Derry v Peek (1889) 14 App Cas 337
Egan v Posman [2018] QDC 53
Gerace v Auzhari Supplies Pty Ltd (in liq) (2014) 87 NSWLR
43
Heaven v Road and Rail Wagons Ltd [1965] 2 QB 355
Hightop Pty Ltd v Kay Sheila Lawrence [2010] QCA 270
Hutchinson v Equititour Pty Ltd [2011] 2 Qd R 99
Lewis v Carter [2018] NSWCA 118
McIntosh & Anor v Maitland & Ors [2016] QSC 203
Muirhead v The Uniting Church in Australia Property Trust
[1999] QCA 513
Paragon Finance v DB Thakerar & Co [1999] 1 All ER 400
Peco Art Inc v Hazlitt Gallery Ltd [198] 3 All ER 193
Poole v Moody [1945] 1 KB 350
Port Ballidu Pty v Frews Lawyers [2019] 1 Qd R 276
Quinlivan v Konowalous [2019] QSC 285
Tyler v Custom Credit Corp Ltd & Ors [2000] QCA 178
Woodhead v Elbourne [2001] 1 Qd R 220
COUNSEL: J.P. Hastie applicant/ defendant by counterclaim
D.L.K. Atkinson QC for the respondent/defendant
SOLICITORS: Coves and Co for the applicant /defendant by counterclaim
Cornwalls for the respondent/defendant
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Introduction
[1] This is an application by the defendant by counterclaim John Cardillo (the
applicant), to set aside an ex parte order for renewal of a counterclaim obtained
against him by the defendant, Moreton Bay Trailer Club Incorporated (the
respondent), on 17 August 2020.1 The order for renewal was necessary because
the counterclaim was filed on 16 July 2018 but was not served within one year.2
[2] The applicant applies under r 16(d) of the Uniform Civil Procedure Rules 1999
(Qld) (UCPR) or alternatively UCPR r 667(2)(a) but the challenge to the order
turns on the application of UCPR r 24. This section provides, in part, as follows:
“24 Duration and renewal of claim
(1) A claim remains in force for 1 year starting on the day it is filed.
(2) If the claim has not been served on a defendant and the registrar
is satisfied that reasonable efforts have been made to serve the
defendant or that there is another good reason to renew the claim,
the registrar may renew the claim for further periods, of not more
than 1 year at a time, starting on the day after the claim would
otherwise end.
(3) The claim may be renewed whether or not it is in force. …”
[Emphasis added]
[3] The hearing of the application to set aside the order for renewal is a hearing de novo
at which further evidence is admissible3. The application must be determined after
considering all of the evidence adduced by the parties.4 The respondent bears the
onus of demonstrating that the order for renewal should be made or sustained
notwithstanding that it is the applicant who brought the application to set aside the
order.5
[4] In compliance with the order for renewal (which renewed the counterclaim until 30
September 2020), the counterclaim was personally served on the applicant on 26
August 2020. But during the hearing, senior counsel for the respondent made an
oral application pursuant to UCPR r 117, for a declaration that informal service of
the counterclaim occurred on 19 July 2018, within one year of it being filed (to the
effect that the application and the order were redundant). I granted leave, so this
application was also ventilated before me.
[5] It follows that the following three issues emerged for my determination:
1 Ex parte Order for renewal of Sheridan DCJ dated 17 August 2020.
2 Uniform Civil Procedure Rules 1999 (Qld), r 24.
3 Babcock & Brown Pty Ltd & Ors v Arthur Andersen [2010] QSC 287at [55] per Margaret Wilson J.
4 Ibid. See also Quinlivan v Konowalous [2019] QSC 285 at [51] per Davis J.
5 Muirhead v The Uniting Church in Australia Property Trust [1999] QCA 513 (“Muirhead”) per
Williams J at [29] (Davies and Pincus JJA agreeing); see also McIntosh & Anor v Maitland & Ors
[2016] QSC 203 at [4] (per Jackson J).
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(1) Issue one: Has the respondent satisfied me that there was informal service of
the counterclaim on 19 July 2018?
(2) Issue two: Has the respondent satisfied me that reasonable efforts were made
to serve the counterclaim on the applicant within one year of it being filed?
(3) Issue three: Has the respondent satisfied me that there is another good reason
to renew the counterclaim?
[6] These questions cannot be answered without an understanding of the relevant
factual background and the issues in dispute between the parties. Many aspects of
the facts are contested and are not easily discerned from the pleadings or the
material. It is impossible and unnecessary to resolve these issues on this application.
It follows that the overview below has been elicited from the pleadings and material
for the purpose of this application only.
Overview of the facts and issues
[7] Paul Cardillo is the brother of the applicant and the plaintiff in these proceedings.
The applicant is a licensed builder. At the relevant time, both Paul and the applicant
were long-term members of the respondent, a boating club situated on the foreshore
and harbour at Manly. Over the years, the applicant held several management
positions with the respondent including commodore and honorary secretary. In
September 2013 he was appointed as an honorary member of the respondent.
[8] Between 2007 and 2010, a new marina development creating a further series of
boating berths was built by the respondent at the Manly site. The applicant was
honorary secretary during this period. He was also allegedly either authorised or
engaged by the respondent to act as the project manager for the development and to
undertake some construction work in relation to it. The terms of this engagement are
unknown - it seems there was no written agreement between the parties. Although
the evidence does reveal a written agreement dated 17 December 2008 between the
respondent and a company unrelated to the applicant (The Jetty Specialist) for the
design and construction of the marina. 6
[9] On 28 November 2009, the applicant and Paul entered into a written agreement for
construction and sub-lease of berth Z1 at the site. This agreement included lease
rental consideration of $231,660.00 (incl GST) and a deposit of $75,553.00 for
berth Z1.7 This berth was completed around the middle of 2010.
[10] In late July 2010, the applicant emailed Dibbs Barker, the solicitors acting for the
respondent in relation to the development, requesting that the applicant’s name be
removed from the eventual sub-lease. In his evidence before me, the applicant
explained that he did not want to be a party to the sublease due to “personal,
6 First affidavit of Heathwood at [83].
7 Exhibit JC1 to the Applicant’s first affidavit.
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financial and business issues.”8 It followed that on 1 August 2010, Paul alone
executed a 24-year written sublease agreement over berth Z1.9 The sublease was
executed by the respondent on 3 August 2010 and registered with the Queensland
Titles Office on 6 August 2010. It relevantly provided for a commencement date of
30 July 2010 and for lease rental consideration of $210,000.00 (incl GST).
[11] Subsequently, several committee members of the respondent became concerned that
berth Z1 had either not been paid for in full or at all and requested an investigation.
Ian Heathwood, a practising solicitor and then partner of McKays solicitors, was the
honorary secretary of the respondent at the time and was tasked with overseeing
these investigations. Mr Heathwood joined the management committee of the
respondent and took over the role of secretary from the applicant in about August
2013. It is alleged that at this time, the respondent was facing “a series of
challenging financial issues” which needed to be addressed to ensure its survival.10
[12] Mr Heathwood was also a long-time family acquaintance of the applicant and was
initially confident that the allegations that berth Z1 had not been paid for were
baseless.11
[13] After some initial investigations, on 10 December 2013, Mr Heathwood sent the
applicant a letter setting out the respondent’s perspective of the relevant facts and
providing the applicant with an opportunity to address the respondent’s concerns
about the rent payments for berth Z1.12 Relevantly, this letter queried the basis of
the reduction of the rent consideration and the accuracy of the payment schedule
contained in spreadsheets prepared by external accountants. The letter also referred
to a file note that recorded a conversation between a paralegal from Dibbs Barker13
and the applicant on 29 July 2010 about berth Z1. In it the applicant is alleged to
have said that: the lease rental had been paid in full; the price was $210,000 (inc.
GST); the commencement date was to be 30 July 2010; the tax invoice was to be
sent to the applicant; and the initial annual levy was to commence on 30 July 2010.
[14] Mr Heathwood’s evidence is that during 2014 he had several conversations with the
applicant, in person and on the phone, in which he sought to further understand the
contra arrangement for payment of berth Z1. During one of these conversations the
applicant is alleged to have told Mr Heathwood that the applicant had carried out a
considerable amount of work and that he had project managed the entire
development construction, but that he had been foolish to proceed with the work
without a proper contract. 14
8 Ibid [at 23].
9 The agreement was signed by Paul on 1 August 2010 and the respondent on 3 August 2010.
10 Affidavit of Ian Dickson Heathwood sworn and filed 25 February 2021 (Court file Document 46)
(“first Heathwood affidavit”) at [15].
11 First Heathwood affidavit at [27] to [30].
12 Applicant’s first affidavit [at 39].
13 The solicitors acting for the respondent in relation to the development.
14 First Heathwood affidavit at [57].
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[15] In another conversation in about January 2014, Mr Heathwood allegedly asked the
applicant to explain what had “gone on” in terms of payment for berth Z1 as he
“could not make the numbers add up”. Mr Heathwood’s evidence is that the
applicant told him that there had been a “contra deal” between himself and the
respondent in relation to the work that the applicant and his building company had
performed on the development and that in exchange for this work, it was agreed that
the applicant and Paul would not have to pay the full price for the berth. The
applicant is also alleged to have told Mr Heathwood that “it was all documented and
above board” and he would send a brief summary “in the next couple of days” and
follow up with the “actual documentation” after that.15
[16] The applicant accepts that from about December 2013 he had “interactions” with
Mr Heathwood about payments under the sub-lease and about what the applicant
was alleged to have said to the respondent’s accountants. The applicant also alleges
that he spoke to Guy Houghton and Bruce Richardson, who were allegedly on the
respondent’s management committee. Both men emphatically deny having any such
discussions with the applicant. Mr Houghton’s evidence is that he was not a
member of the management committee until August 2014 and Mr Richardson’s
evidence is that he was not a member at any time after December 2013. 16
[17] On 3 February 2014, the applicant sent Mr Heathwood a letter purporting to address
the concerns of the respondent about the purchase price for berth Z1. The letter
enclosed three tax invoices: tax invoice 795 dated 27 October 2008 for $71,233.57
(inc GST) ;17 tax invoice 810 dated 6 July 2009 for $70,000 (inc GST); and tax
invoice 945 dated 10 September 2009 for $92,100.00 (inc GST) issued by “John
Cardillo Building Services.” These invoices contain a some general lines about the
work being invoiced “RE: MBTBC Marina” and are not addressed to anyone. The
letter also states: that “[t]he purchase price has been paid in full. There is no error
and no short payment of the purchase price.”18 Later, Mr Heathwood asked the
applicant to provide more detailed documentation about the work carried out than
that contained in the invoices. 19 Despite assurances by the applicant that such
information would be shortly forthcoming, no such documentation was ever
received.
[18] On 17 September 2014, Mr Heathwood sent Paul correspondence to the effect that
the respondent’s investigations had revealed that payments of $171,233.57
(including a deposit of $5,000) had been made, leaving an unpaid balance for rental
15 First Heathwood affidavit at [43].
16 Affidavit of Guy Houghton filed 22 February 2021; Affidavit of Bruce Richardson filed 22 February
2021.
17 Marked paid on 19 December 2008.
18 First affidavit of Heathwood at para 50 and pages 140 to 143 of the exhibits.
19 Mr Heathwood recalled being shown other invoices, but these were not in evidence.
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consideration (for which demand was made) of $38,766.43.20. This letter also
relevantly requested that Paul:
“Identify when and how the balance of the money in relation to the berth price was
paid (if they were paid), providing documentary evidence of that or those payments.
In this respect the Committee wishes me to point out that any financial
arrangements between the Club and your brother or his construction company with
respect to the construction of the marina, are irrelevant to the issue of whether you
have or have not paid the full price for the berth.” [Emphasis added]
[19] The applicant’s evidence is that at the time that “these letters were received” (i.e.
the December 2013 letter and the 17 September 2014 letter) he sought assistance
from a solicitor, Mr John Drakos.21 Mr Drakos was a former commodore of the
respondent and a friend of the applicant.
[20] In October 2014 the applicant and Mr Drakos attended a “without prejudice”
meeting with Mr Heathwood at the offices of McKays Solicitors. It is not clear
whether Paul attended this meeting, but the evidence of the applicant was that the
dispute was not resolved and Mr Drakos “went on to act for Paul in respect of the
Dispute.” 22
[21] Due to the alleged non-payment of the sum of $38,766.43 (inc GST) in lease rental
payments, on 10 April 2015, the respondent served Paul with a notice to remedy
breach under s124 of the Property Law Act 1974. Then on 21 April 2015, the
respondent purported to terminate the Lease. On 11 December 2015, the respondent
leased berth Z1 to a third party.
[22] Otherwise, due to all the negotiations and effort that Mr Heathwood and the
management committee undertook to resolve the respondent’s then dire financial
position, the dispute was largely pushed to the background by the respondent until
June 2018.
About the proceeding
[23] On 19 June 2018, Paul commenced the current proceedings seeking a declaration
that the notice to remedy, the termination, and the assignment to a third party was
unlawful. This claim was amended on 8 June 2020. Paul currently seeks damages
for breach of contract in the sum of $230,058.00 (or alternatively $175,000).23 He
also claims the sum of $57,541.96 for loss of rental income from the berth. Paul’s
case is that he was not in default under the sublease because he made various
payments ($71,058 on 1 December 2008, $70,000 on 8 December 2008; $70,000 on
20 As set out in paragraph 24 of these Reasons, Mr Heathwood later realised that these figures were
incorrect and that the only amount the respondent had received from Paul or the applicant was the
$5,000 deposit paid by the applicant on about 5 April 2008.
21 Frist Cardillo affidavit [at 39].
22 Applicant’s first affidavit [at 40].
23 Paul also seeks the sum of $57,541.96 for loss of rental income from Berth Z1.
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23 December 2008; and $14,000 on 11 May 2009) into the National Australia
Business bank account of “John Cardillo Builders” in full satisfaction of these
obligations.24 His explanation being that he was directed by the applicant to make
payments this way because the construction costs for the site were being
temporarily run out of the applicant’s business account until bank finance for the
development was finalised. 25
[24] On 16 July 2018, a defence and counterclaim including the applicant as the
defendant by counterclaim was filed by the respondent’s then solicitors, McKays
Solicitors.26 By its defence, the respondent maintains that berth Z1 has not been
paid in full. Mr Heathwood contended that it was only after the proceedings were
commenced that the respondent again reviewed its records and realised that its
accounting spreadsheets wrongly recorded amounts that had been paid under the
sub lease when they had not been; and that the only payment it had received in
relation to berth Z1 was the deposit payment of $5,000. The respondent also
maintained that it did not authorise the reduction in the sub-lease and that it did not
receive any of the monies paid into the John Cardillo builders account or authorise
any contra deal with the applicant about berth Z1.27
[25] By its counterclaim, the respondent alleges that the applicant was in a special
position of trust and confidence, was a fiduciary and had no power to enter into or
vary any contract without the prior approval of the management committee, which
he did not have. The respondent claims equitable compensation or, alternatively,
damages for breach of fiduciary duties against the applicant.
[26] The applicant contended that if the proceedings against him continue, his case will
be that:28
(a) at the times that the rent and initial levy fell due for payment under the
agreement to sub-lease and sub-lease, the respondent owed him a significant
amount of money for work and services he performed on the development;
(b) due to how long ago those events occurred, he cannot be certain about the
exact amount that was owed to him;
(c) at the time that the development was taking place, the respondent was short of
funds and could not afford to continue with the project;
(d) due to the respondent’s shortage of funds and for convenience:
(i) Paul paid the sub-lease payments into the applicant’s building
business bank account;
24 Amended statement of claim [ 2A to 2 C]. With John Cardillo also making a payment of $5,000 on 7
April 2008 directly to the respondent [2A (f)].
25 Amended statement of claim [2A e)].
26 An amended defence has yet to be filed to the amended statement of claim.
27 First affidavit of Heathwood at [65].
28 First affidavit of Cardillo [68].
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(ii) the sub-lease payments were then used by the applicant to continue
to carry out the development; and
(iii) at no stage were these payments applied for any purpose other than
the continued management and construction of the development.
[27] The applicant alleges that the arrangement described in the preceding paragraph was
discussed with the respondent’s then management committee and, at no stage, was
any complaint or objection raised.29
Service of the counterclaim
[28] The counterclaim was served on Paul’s solicitor (Peter Previtera of Alex Mckay and
Co) by letter from the respondent’s then solicitor (Mr Evans of McKays Solicitors)
on about 18 July 2018.30 At the same time, Mr Evans sought confirmation as to
whether Mr Previtera held instructions to accept service on behalf of the applicant.
This letter also stated that “if we do not receive confirmation of the same by noon
on Friday (20 July 2018) we shall attend to personal service of the proceeding on
Mr John Cardillo without further reference to your office.” 31
[29] The evidence from Mr Previtera is that, although he has represented Paul in these
proceedings, he has “had regular contact with John both by telephone and email.”32
Two obvious examples are immediately apparent from the correspondence.
[30] First, on 19 July 2018 Mr Previtera sent the letter of 18 July 2018 from McKays
Solicitors (attaching the counterclaim) to both Paul and the applicant. On 19 July
2018 the applicant sent an email to Mr Previtera stating that “I will act for myself
once they serve me. I am not concerned with there[sic] accusations and will not be
spending money on my defence.”33
[31] Secondly, on 11 February 2019 Mr Previtera forwarded a letter he had received
from Landers & Rogers about a mediation of the proceedings to the applicant. This
letter stated that the solicitors were instructed to invite the applicant to attend a
meditation and that “[i]f any mediation is unsuccessful, the club intends to serve
John Cardillo with this counter-claim.”34 Mr Heathwood said he did not give
instructions to send the 11 February letter nor did he see it before it was sent. I
29 Ibid.
30 There seems to have been some confusion about who was acting for the respondent around this time
as both Lander & Rogers and McKays Solicitors contacted Alex McKay and Co. The evidence is
that McKays Solicitors acted for the respondent from 19 June 2018 until 7 August 2018 and then
Lander & Rogers the solicitors for the respondent’s insurers acted for the respondent from 7 August
2018 until 11 June 2020. From 11 June 2020 onwards Cornwalls (who previously traded under the
name McKays Solicitors – Brisbane) have acted for the respondent. Mr Heathwood is a partner of
Cornwalls.
31 Second Cardillo affidavit at Exhibit JC 11.
32 Affidavit of Peter Previtera filed 8 February 2021 at page 4.
33 Second Cardillo affidavit at Exhibit JC12.
34 Affidavit of Peter Previtera filed 8 February 2021 at page 45.
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accept this evidence. It is entirely plausible that the instructions came from the
insurers and not from the respondent. In an email dated 11 February 2019, the
applicant responded to Mr Previtera as follows:
“Hi All, Until they serve me with there (sic) false allegations, I think it’s
pointless me wasting time engaging in mediation. It will only be further
distraction and attempt to validate Heatwoods lies (sic)”35.
[32] On 20 July 2018, Mr Evans from McKays Solicitors engaged a process server to
serve the applicant personally at a property located at 54 Goondool Street
Kooringal. This address was obtained from the applicant’s QBCC license search. 36
Subsequently the process server advised that service would cost $1,150.00 because
the property was only accessible via private boat and would take some three hours
to attend, dependent on the weather.37 Mr Evans then gave instructions to the
process server to go ahead with service. On 24 September 2018, the process server
provided a report in an email to Mr Evans, advising that service was unable to be
effected because no one was at the property. This report noted, amongst other
things, that neighbors had told the process server that the applicant did not usually
reside at the property and usually only attended on weekends or holiday periods.
The report stated that an Australian Electoral Roll search listed the applicant’s
residence at the property and that property searches conducted did not identify any
listings for the applicant but revealed property to be held in the name of Melissa
Jayne Cardillo (the applicant’s wife).
[33] Over this period, the respondent’s legal representation changed from McKays
Solicitors to the solicitors for its insurers Rogers & Lander.38 There is nothing in the
material before me to suggest that Mr Evans forwarded the email about service of
the counterclaim not being effected to Landers & Rogers. But it is reasonable to
infer, as a matter of common sense, that this firm, as the respondent’s new
solicitors, ascertained this fact shortly after they took over the file. They certainly
knew about it in the period leading up to the mediation in 2019 as the letter of 11
February 2019 referred to in paragraph 31 above shows.
[34] Inexplicably, there is no evidence of any attempts by Landers & Rogers to serve the
counterclaim on the applicant during the time they acted for the respondent. Nina
Thomas, a solicitor in the employ of Cornwalls who later became the legal
representative for the respondent, reviewed the file she received from Landers &
Rogers on around 11 June 2020. Her evidence is that it is “unclear” whether
Landers & Rogers took any further steps to serve the counterclaim.39
35 Affidavit of Peter Previtera filed 8 February 2021 at page 46.
36 First Thomas Affidavit at [5.5].
37 First Thomas Affidavit at [5.7], NJT1 at page 18.
38 A notice of change of solicitor to this effect was filed on 7 August 2020.
39 Affidavit of Nina Jacqueline Thomas filed 23 February 2021.
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[35] On 24 Jul 2020, Cornwalls sent Mr Previtera a copy of the ex parte application for
an order to renew the counterclaim together with the supporting material that had
been filed in the District Court. This letter must have been passed on to the
applicant because on 31 July the applicant responded as follows:40
“I have been provided with a copy of your email to Alex Mackay & Company
Solicitors of 24 July 2020. I am somewhat surprised that you have been
allegedly unable to serve me with legal proceedings considering your client
has had my contact details including mobile telephone number, which has
remained unchanged for the last 25 years, and you have not bothered to
telephone me about this matter at any time.
Also, you have had contact with my brother and his solicitor for the duration
of the litigation. Why you have not approached either of them to arrange
service on me at an earlier point in time.
I am happy to make myself available to you so you can serve proceedings on
me if this is what you want to do and I am at a loss to understand why this has
not been done sooner.” [Emphasis added]
[36] In light of this letter, on 3 August 2020, Cornwalls wrote to the applicant asking
him to confirm that he did require the counterclaim to be renewed. The applicant
then wrote back on 11 August, changing tactics slightly (given the language of this
letter it is reasonable to infer as I do that the applicant obtained some legal advice as
he was well entitled to do) stating that he required the counterclaim to be renewed
because the respondent could have easily taken “reasonable steps” to serve him
earlier.
Was there a deliberate decision not to serve the counterclaim?
[37] It was initially maintained by the applicant that there had been a deliberate decision
not to serve the applicant with the counterclaim. But this submission was
subsequently withdrawn by counsel for the applicant after the cross examination of
Mr Heathwood. This was a reasonable concession. For a number of reasons, the
evidence does not support a finding of any deliberate or tactical decision on the part
of the respondent not to serve the applicant with the counterclaim.
[38] First, Mr Heathwood was cross examined at some length about what he did and did
not know about service. On occasions during this questioning Mr Heathwood
became frustrated and defensive. But overall I found him to be a reliable and honest
witness who did his best to answer the questions posed of him. Mr Heathwood’s
affidavit evidence was that the respondent never resolved “that it should not serve
the Counterclaim” on the applicant and that its solicitors were never instructed not
to serve the counterclaim. This evidence, which I accept, is consistent with the
40 Ibid at page 37.
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initial costly attempt to serve the counterclaim on the applicant. During the course
of cross examination, Mr Heathwood accepted that on 20 December 2018 he knew
(from correspondence from Mr Previtera to Landers & Rogers which questioned
whether it was intended to serve the applicant), that the counterclaim had not yet
been served on the applicant. Mr Heathwood’s response which I accept as plausible
and reasonable was “Yes, they hadn’t done it yet.”41 This finding it also consistent
with Mr Heathwood’s evidence, which I accept, that at the time Cornwalls took
over the file on 11 June 2020 he assumed that the applicant had been served and had
filed a defence.42 It follows that I accept the evidence of Mr Heathwood that there
were long standing instructions to the respondent’s solicitors to serve the applicant
and that these instructions were never withdrawn. It was reasonable to infer, as Mr
Heathwood did, that attempts to serve the applicant would continue.
[39] Secondly, Mr Heathwood’s evidence, which I accept, was that he found out at
some time before the “conciliation” (I infer he was referring to the mediation held
on 3 June 2019) that the applicant had still not been served, had not filed a defence
and would not be attending the conciliation. Mr Heathwood was appalled. As at
June 2019 Mr Heathwood “fully expected that they would serve him [the applicant]
as soon as they found him. I couldn’t help them with where he was. All I knew
were rumours about where he was, and that’s useless.”43
[40] Thirdly, Mr Heathwood accepted that he had an email and phone numbers for the
applicant but said he “wouldn’t call him because he’s extremely aggressive and
rude”.44 Given the long history of the dispute and the tone of some of the emails
from the applicant to Mr Previtera about this matter, it is reasonable to infer as I do,
that the relationship between Mr Heathwood and the applicant was not amicable and
that in those circumstances it is understandable that Mr Heathwood did not contact
the applicant directly. Mr Heathwood’s evidence, which I accept as a matter of
common sense, was that he did not give the solicitors this information but that one
of his fellow partners had sent an email to them with the details of where the
applicant lived “and so on”.45 It is also reasonable for Mr Heathwood to have left it
to the respondent’s solicitors to conduct the matter as they saw fit on the
respondent’s behalf. Whilst he was a solicitor of some 35 years standing, he frankly
admitted he was “not a litigator”.
[41] Against this backdrop I now turn to consider the first issue for my determination.
Issue one: Was there informal service of the defence and counterclaim upon the
applicant on 19 July 2018?
41 T1-24 ll 45.
42 T1-31 ll 7 to 14.
43 T1-28 ll35-39.
44 T1-27 ll 1 to 4.
45 T1-31 ll 40 to 45.
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[42] The respondent applies under UCPR r 117 for an order that service of the
counterclaim was effected on the applicant on 19 July 2018. Rule 117 UCPR which
appears in UCPR “Chapter 4 – Service” provides for Informal Service as follows:
117 If—
(a) for any reason, a document is not served as required by this chapter
but the document or a copy of it came into the possession of the
person to be served; and
(b) the court is satisfied on evidence before it that the document came
into the person’s possession on or before a particular day;
the court may, by order, decide that the possession of the document is service for
these rules on the day it came into the person’s possession or another day stated in
the order.
[43] On one view, although it was not argued before me, this rule is not applicable to the
present facts because the evidence is that pursuant to the order for renewal (made on
17 August 2020), the counterclaim was personally served on the applicant on 26
August 2020 as required under Chapter 4 of the UCPR. If this is correct, it would
not be open to me to find that there was informal service and I would answer Issue
One in the negative.
[44] But in case I am wrong I have also considered the application as though the order
for renewal had not been made and personal service was not effected in accordance
with Chapter 4.
[45] By virtue of UCPR r 105(1) and 178(4) a counterclaim must be served personally.
Under UCPR r 24(1) the counterclaim remains in force for one year from when it
was filed. It follows that absent an order for renewal under UCPR r 24(3), the
defence and counterclaim against the applicant was required to be served personally
on him by 19 June 2019. The evidence is that it was not served within this time. I
am therefore satisfied that the pre requisite condition in UCPR r 117(a) is met.
[46] The evidence is that the applicant was never personally served with the
counterclaim within one year of it being filed on 19 June 2018 but it is
uncontroversial that a copy of this document came into his possession within this
one year period when Paul’s solicitor Mr Previtera forwarded an email to the
applicant on 19 July 2018. 46 I am therefore satisfied that the pre requisite condition
in UCPR r 117(b) is also met.
46 It appears that this fact first came to the knowledge of the respondent’s solicitor’s (Cornwalls) after
the order for renewal, upon receipt of the applicant’s affidavit sworn and filed on 8 February 2021
(in support of his application to set aside the order for renewal). See letters dated 25 February 2011
and 11 March 2021 from Cornwalls to the applicant’s solicitor exhibited at JC9 and JC10 to the
Second Cardillo affidavit.
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[47] The question is whether I ought to exercise my discretion to deem service to have
occurred on 19 July 2018.
[48] There are no rigid rules in relation to how the discretion under UCPR r 117 should
be exercised. As Justice Jackson observed in AMCI P/L v Corcoal Management P/L
and Ors [2013] QSC 50 at [32]:
“There is no uniformity in the rules of court in different Australian jurisdictions as
to what will be sufficient for satisfactory informal service by reason of receipt of or
attention being drawn to a document.”
[49] It follows that each case turns on its facts.
[50] In submitting that I should exercise my discretion in the respondent’s favour, Senior
Counsel for the respondent referred to the decision of Porter QC DCJ in Egan v
Posman [2018] QDC 53. But, in my view, that decision is distinguishable from the
present case in the following ways:
(1) First, it was accepted in Posman that “actual” service, as required under the
UCPR, had been reasonably attempted. In the present case, the evidence is
that only one attempt was made to personally serve the applicant with the
counterclaim. Whilst it was an expensive attempt, the applicant ought to have
made more of an effort to serve the counterclaim before falling back on the
power under UCPR r 117. For this reason and as discussed under the heading
“Issue two” below, I am not satisfied that reasonable efforts were made by the
respondent to serve the counterclaim on the applicant.
(2) Secondly, it was also accepted in Posman that the defendant (who was a
lawyer admitted in Papua New Guinea) had come into possession of the
claim and statement of claim after it was served personally on a senior
litigation secretary at the defendant’s firm (who acknowledged she had
instructions to accept service and signed an acknowledgment of service), in
circumstances where it was accepted that service in this manner is recognised
as a proper mode of service of originating process under UCPR r 115 and the
relevant rules of Papua New Guinea. The facts in the present case are entirely
different. They do not involve an attempt to serve the applicant. Whilst I
accept that the letter serving the defence and counterclaim on Paul (in
accordance with the UCPR) did ask for a response as to whether Paul’s
solicitor had instructions to accept service on behalf of the applicant, service
of the document was only directed to Paul. It is reasonable to infer, as I do,
that it was not the intention of the respondent’s solicitor to serve the
counterclaim on the applicant by email at that point in time. Further, absent
an order for substituted service, the mode of service by email is not
recognised as a proper mode of service of a counterclaim.
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[51] The fact that the respondent has now became aware (over two and a half years
later), that the counterclaim came into the applicant’s possession before it became
stale, does not justify the exercise of my discretion to order informal service in this
case, for two main reasons.
[52] First, the respondent has conducted the proceedings on the basis that there has been
no service – the ex parte application for an order for renewal of the defence and
counterclaim was premised on this fact. Further, and as counsel for the applicant
correctly submitted, to order there had been informal service from 19 July 2018 at
this juncture would be problematic because arguably there would have been “no
step” in the proceeding for over two years. This in turn potentially invokes
considerations under UCPR r 389 and what are commonly referred to as “Tyler v
Custom Credit” considerations.47
[53] Secondly, in the present case there is no cogent evidence that there were any or
significant legal or practical difficulties in effecting service of the defence and
counterclaim on the applicant personally and within time. Indeed, once the order for
renewal was obtained, the evidence is that the counterclaim was served on the
applicant nine days later. Even if there were difficulties, again, the observation of
Justice Jackson in AMCI that “UCPR 117 is not intended to resolve difficulties in
the mater of service required by the UCPR” is most apposite.48
[54] I therefore order that the respondent’s oral application for an order for informal
service under UCPR r 117 is dismissed.
Issue two: Were reasonable efforts made to serve the counterclaim on the applicant?
[55] As discussed earlier in these Reasons, only one attempt to serve the counterclaim
was made by the respondent’s solicitors within one year of it having been filed.
Whilst I accept there was not a deliberate or tactical decision by the respondent not
to serve the counterclaim, it remains the fact that after this one attempt, there is no
evidence of any further attempts at service. The fact that there were long standing
instructions to serve the counterclaim and Mr Heathwood thought that attempts to
serve were continuing to be made does not change the fact that on the evidence
before me nothing was being done to effect service for the remainder of the one
year period.
[56] This is most unsatisfactory. One attempt at service in one year is simply not
reasonable in the circumstances of this case. That it was an expensive attempt does
not change this.
[57] It follows that the respondent has not satisfied me that reasonable efforts were made
to serve the counterclaim on the applicant within one year of it being filed.
47 Tyler v Custom Credit Corp Ltd & Ors [2000] QCA 178 at [4].
48 AMCI P/L v Corcoal Management P/L and Ors [2013] QSC 50 at [22].
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Issue three: Is there another good reason to renew the counterclaim?
Legal principles
[58] In determining whether there is “another good reason”, the court’s discretion is
wide and unfettered. But it must be exercised having regard to UCPR r 5 and with
the following observations of White JA in Hightop Pty Ltd v Kay Sheila Lawrence
[2010] QCA 270 at [35] in mind:
“Rule 5 states the philosophy of the UCPR, requiring parties to proceed
expeditiously and, amongst other things, to avoid undue delay. Thus any conduct of
the proceedings by a party which entails unexplained or inexcusable delay cannot
expect to be vindicated by a court (or the registrar) exercising the discretion in r 24
(2).”
[59] The authorities clearly establish that a party who deliberately chooses to refrain
from serving a claim will ‘rarely’ be able to show good reason to warrant the
renewal of the claim.49 The reasons for the lack of further attempts at service of the
counterclaim on the applicant by the respondent’s solicitors remain a mystery in this
case. But as discussed at paragraphs 37 to 40 of these Reasons, I am satisfied that
the lack of action was not a deliberate act on behalf of the respondent. It follows
that this case does not fall within that rare category of cases.
[60] In Muirhead v Uniting Church in Australia Property Trust [1999] QCA 513 at [4]
Pincus J identified some of the considerations relevant to an application for renewal,
as follows:
“(1) There is a tendency to relax rigid time limits where that is legally
possible and where it can be done without prejudice or injustice to other
parties.
(2) The discretion may be exercised although the statutory limitation period
has expired.
(3) Matters to be considered include the length of delay, the reasons for it,
the conduct of the parties and the hardship or prejudice caused to the
plaintiff by refusing renewal or to the defendant by granting it.
(4) There is a wide and unfettered discretion and there is “no better reason
for granting relief than to see that justice is done”.
[61] The applicant submitted that the concept of there being a “tendency to relax rigid
time limits” pre-dated more contemporary attitudes towards case management (such
49 IMB Group Pty Ltd (in liq) v ACCC [2007] 1 QD 148 at [53] to [54] per Keane JA (McMurdo and
Cullinane agreeing)
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as those espoused in Aon Risk Services Australia v Australia National University50)
and must be doubted.
[62] I accept this submission. It is consistent with the following observation of Jackson J
in McIntosh & Anor v Maitland & Ors [2016] QSC 203 at [34]:
“In my view, it can no longer be said in this court that, in cognate branches of the
procedural law, there is a tendency to relax rigid time limits where that is legally
possible and where it can be done without prejudice or injustice to other parties.
That would be inconsistent with a number of the statutory rules, concepts, principles
and practices that are now recognised and incorporated into our modern laws of
civil procedure.” [Emphasis added]
[63] But of course, these observations do not override or otherwise derogate from the
broad discretion to renew a counterclaim expressly contained in UCPR r 24 (2).
Analysis
[64] The respondent essentially relies on four pillars in support of its submission that
there is “another good reason” to renew the counterclaim. First, that it has a
worthwhile action against the applicant. Secondly that the applicant had knowledge
of the counterclaim since July 2018. Thirdly, that the issues on foot between Paul
and the respondent overlap the issues to be ventilated in the counterclaim dispute.
Fourthly, there is no real prejudice to the applicant. I will deal with each of these in
turn.
Worthwhile action
[65] The respondent submitted that the facts raise serious allegations of conflict, misuse
of power, breaches of duty and deceitful conduct on the applicant’s part (for which
he should not escape examination) because:
(a) apart from the applicant’s broad assertions, there is no evidence of any
“contra” deal (and even Paul does not plead there was a contra deal);
(b) there have been several different versions of events given by the applicant;
(c) it highly implausible that money owed to the respondent would be authorised
to be directed elsewhere when payment would normally need to be taken into
account for tax, depreciation, reconciliation, and transparency purposes;
(d) there is a concerning conflict in a secretary of an organisation authorising a
creditor to pay him instead of that organisation, particularly without any
written authorisation.
[66] I am satisfied that the matters identified above fairly emerge from the analysis of the
contentious facts and on the material before me. It follows that I am satisfied that
50 (2009) 239 CLR 175.
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respondent appears to have an “apparently worthwhile” cause of action against the
applicant. This is a factor which favours renewal, but it does not, on its own,
necessarily found a good reason for renewal.51
[67] This is not the end of the issue of whether the claim is a worthwhile.
Limitation Issue
[68] The respondent’s claim against the applicant is an equitable cause of action for
breach of fiduciary duties. It is accepted that, consistent with equitable principles,
there is no limitation period that applies to actions for breach of fiduciary
obligations.52
[69] But the applicant submitted that if the respondent’s claim is analogous to any
common law cause of action (to which a limitation period does apply) it is usually
appropriate to apply that limitation to the claim.53 The respondent submitted that
this principle does not necessarily apply to breaches of fiduciary duty.54 But in Port
Ballidu Pty v Frews Lawyers [2019] 1 Qd R 276 the Queensland Court of Appeal
accepted that the principle applied to import applicable limitation periods for legal
and statutory causes of action into claims for breach of fiduciary duty.
[70] The applicant submitted that the respondent’s claim is analogous to an action for
deceit55 so that the analogous limitation period is one which ended 6 years56 after
the fraud was discovered or could with reasonable diligence have been discovered.57
[71] I accept this submission as correct as a matter of law.
[72] The applicant also submitted that, as a matter of fact, the respondent had sufficient
knowledge of the alleged fraud or could with diligence have discovered the alleged
fraud by early 2014 at the latest. The applicant submitted therefore that the
limitation period expired early to mid-2020. Prior to the order for renewal being
made.
[73] In support of this submission the applicant pointed to the evidence properly
analysed demonstrating that:58
51 Muirhead at [13].
52 Section 10(6)(b) of the Limitation of Actions Act 1974: Poole v Moody [1945] 1 KB 350, 355;
Woodhead v Elbourne [2001] 1 Qd R 220 per White J.
53 The principle was discussed by Meagher JA (Beazley P and Emmett JA agreeing) in Gerace v
Auzhari Supplies Pty Ltd (in liq) (2014) 87 NSWLR 435 at [70] to [73].
54 Lewis v Carter [2018] NSWCA 118, 71 and 72.
55 Referring to the classic statement of the elements of the tort of deceit stated by Lord Herschell in
Derry v Peek (1889) 14 App Cas 337 at 374.
56 Limitations of Action Act 1974 (Qld) s10 prescribes a 6-year limitation period for any action in tort.
The limitation period starts to accrue from the date the cause of action arose.
57 Limitations of Actions Act 1974 (Qld) (s. 38 (1))
58 Outline of argument of the defendant by counterclaim at [106].
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(1) the respondent was, by early 2014 at the latest, sufficiently aware of the facts
upon which its case against the applicant is now premised and could, from
that time, have acted to institute proceedings;
(2) in any event, the respondent could with reasonable diligence have made the
further enquiries (the bank account record review) it says it undertook in
2018.
[74] The onus rests with the respondent in both instances.59 Reasonable diligence does
not mean “the doing of everything possible” but rather doing what “…an ordinary
prudent” person would do in the context of the case.60
[75] The respondent submitted that on the present facts, the discovery of the fraud or
deceit by the applicant in June/ July 2018 was stifled to some extent by:61
(a) the active concealment of the true circumstances of the case;62
(b) its preoccupation with and prioritisation of keeping the respondent out of
impending solvency;63
(c) Mr Heathwood’s reticence to believe that he was being misled.64
[76] There is some force to both arguments maintained by the parties. But Mr
Heathwood’s evidence upon which the respondent relies was not challenged before
me.65 Overall, I do not consider that the issue can fairly be determined on the
evidence before me. The interests of justice warrant the issue being ventilated in
full before a trial judge.
[77] The applicant submitted that if I am not prepared to conclude that the limitation
period had expired, the fact that it may have expired is a “factor against renewal” 66.
That may be correct, but it is also correct to say that the fact the limitation period in
tort may still be running (as is open on one view of the evidence in this case), is a
factor equally in support of the renewal.67
[78] It follows that the issue of whether the limitation period may have expired prior to
the order for renewal being made is not a factor that has swayed me either way in
the circumstances of this case.
59 Paragon Finance v DB Thakerar & Co [1999] 1 All ER 400 at 418 per Millet LJ (with Pill and May
LLJ agreeing); Hutchinson v Equititour Pty Ltd [2011] 2 Qd R 99 at [27] per P Lyons J, Muir and
Chesterman JJA agreeing).
60 Peco Art Inc v Hazlitt Gallery Ltd [198] 3 All ER 193, 199 (Webster LJ).
61 Submissions for the defendant [at 25].
62 First Heathwood affidavit at [66]-[71].
63 First Heathwood affidavit at [16], [17]. [20], [21].
64 First Heathwood affidavit at [16].
65 This is not a criticism of the applicant’s conduct of the case. The application was listed as one less
than 2 hours in applications court. Counsel did their best to limit the issues before me with cross
examination of Mr Heathwood being limited to the issue of service.
66 Babcock & Brown Pty Ltd v Arthur Andersen [2010] QSC 287 at [90]
67 Ibid at [88] to [90]
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Knowledge of the claim
[79] By his own admission, the applicant accepts that he has been in possession of a
copy of the counterclaim since 19 July 2018. As Justice Jackson observed in
McIntosh the cases do not “speak with one voice” as to whether notice of a claim is
a factor which may show good reason to renew the claim.68 Again, it depends on
the facts. In this case, the applicant’s knowledge is relevant to the issue of prejudice
as discussed under that heading below. On this basis, I am satisfied that the
applicant’s knowledge of and possession of a copy of the counterclaim since July
2018 is a factor that supports renewal of the counterclaim. Though again, on its
own, it may not necessarily be a good reason for renewal.
Overlap of issues
[80] By his amended statement of claim, Paul alleges that the sub-lease was unlawfully
terminated and seeks a declaration to that effect. Paul also expressly pleads that he
made payments to the respondent by paying the applicant – at the applicant’s
direction. Further, in September 2020 Paul requested particulars of, and documents
referred to in, the counterclaim from the respondent’s solicitors. The particulars and
documents were subsequently provided to him in October 2020.69
[81] It follows that the resolution of the facts in issue between Paul and the respondent at
trial will necessarily involve a determination as to whether money was paid to the
applicant. A determination of the applicant’s role is not only central to that dispute
but to the issues to be ventilated at trial between the applicant and the respondent
(as raised by the counterclaim).
[82] In these circumstances it would not be in the interest of justice to curtail the
ventilation of the counterclaim issues. It follows that this factor is persuasive of
there being a good reason for renewal – although it may not be enough on its own.
Prejudice
[83] It is submitted on behalf of the applicant that he faces significant prejudice if he is
forced to defend the counterclaim because:
(1) it concerns events which occurred over 10 years ago; and
(2) part of his defence depends on the applicant explaining events and
transactions which occurred at the time; and
68 McIntosh & Anor v Maitland & Ors [2016] QSC 203[at 15]. Observing that in Heaven v Road and
Rail Wagons Ltd [1965] 2 QB 355 it was considered irrelevant but that it was treated as relevant in
other cases.
69 Pages 54 to 57, 60 and 65 to 68 of the exhibits of the Thomas affidavit.
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(3) (most critically) his defence is heavily dependent upon him producing records
including National Australia Bank records that are no longer available.
[84] I reject the applicant’s submission of there being significant prejudice to the
applicant in this case because it is not supported by my overall assessment of the
evidence on this issue.
[85] The applicant’s unchallenged affidavit evidence is that he did not seek legal advice
in respect of the counterclaim “or the allegations upon which it is based” until after
it was served on him personally in August 2020. Relevantly his affidavit evidence
is that he had known of the various allegations made against him “for years prior to
July 2018” but that he had always taken the view that:70
(1) he had no need to take any step or give serious consideration to the
counterclaim and the allegations it was based upon until he was served by the
respondent;
(2) he was not going to waste his time or money taking any steps to respond until
he was served;
(3) the allegations made by the respondent were misconceived and as such it was
unlikely that they would every actually serve him.
[86] By his affidavit evidence, the applicant also contended that he no longer has a
“recollection of every aspect of what has occurred and that he “no longer retained
all of the documents and records which are relevant to the events.” In particular, he
referred to the services and value of the services he performed in relation to the
development and bank records from the National Australia bank (which he says he
no longer has). The applicant’s evidence is that the National Australia Bank have
advised him that the banking records are no longer available for any period prior to
2011. He is also concerned that some of the relevant records held by the respondent
may not be able to be recovered. 71
[87] Whilst this evidence is unchallenged, I find it largely self -serving and of little
weight or assistance. The applicant is not an unsophisticated man, he held
prominent offices within the respondent, including as the honorary secretary. He
also operated his own business and is the holder of QBCC license. It is reasonable
to infer that he would keep a record or notes. To the extent that the contra deal with
the respondent was an oral one, it is not unreasonable to expect, as I do, that that at
the very least the applicant would recall the crucial parts of the alleged deal and the
names of those on the management committee, with whom he made the deal.
[88] Parts of the applicant’s evidence are contradictory and not supported by
documentary evidence referred to in the facts and issues section of these Reasons.
For example, the applicant’s evidence that he thought it was unlikely he would ever
70 Second Cardillo affidavit at [9] to [12].
71 First Cardillo affidavit [69] to [74].
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be served is inconsistent with the email he sent Mr Previtera on 19 July 2008 stating
that “I will act for myself once they serve me.”72 It is also instructive that despite
the applicant allegedly not being able to locate or access relevant National Bank of
Australia records (because he was apparently told by the Bank that it no longer held
these records) the solicitor for the respondent recently obtained these bank
statements through non-party disclosure.73
[89] Other examples include that the applicant by his own admission: was aware of the
dispute surrounding the payment of the sub lease of berth Z1 from around late 2013
to early 2014, at which time he purportedly provided Mr Heathwood with the
relevant documentation to support his version of what had occurred; he took legal
advice about the allegations in 2014; was aware that the proceedings commenced by
Paul in 2018 (over the termination of the sub-lease in 2015) were being defended
and that his alleged contra deal with the respondent was a live and crucial issue in
that proceeding.
[90] Overall, the evidence shows that since late 2013, the respondent afforded the
applicant considerable opportunity to gather information relevant to his case and to
identify and locate the underlying documents. As set out above, at one point, the
applicant sent through what he said were the relevant invoices to prove his case.
[91] I also find that at least from June 2018, the applicant knew that the issue about
payment for berth Z1 was a live one in the proceeding between Paul and the
respondent. He also knew of and (at least at one point) was expecting the
counterclaim to be served. The applicant could not have been surprised by the
specific allegations against him in the counterclaim. He had a copy of it from July
2018.
[92] I am prepared to accept that there is some prejudice to the applicant in the inevitable
lessening of accurate recollection of events because of the lapse of time. But I do
not consider that in the circumstances of this case, this prejudice can be categorised
as significant. He is not being asked out of the blue to recall what happened. He has
been given a number of opportunities over the last six or so years to articulate the
arrangement he had with the respondent and to gather the relevant documents to
support his case. He is clearly able to articulate the case he wishes to run. He has
done so in this application. In these circumstances I am satisfied that the applicant
will be able to fairly defend himself against the counterclaim.
[93] The respondent has therefore satisfied me that the order for renewal would not
result in “significant prejudice” to the applicant. 74
Conclusion: Is there good reason?
72 Set out in paragraph 31 of these Reasons.
73 Affidavit of Nina Thomas sworn 16 March 2021.
74 Muirhead at [31].
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[94] On the above analysis, the four pillars argued by the respondent support there being
“good reason” for the counterclaim to be renewed. I find that the combination of
factors in this case as analysed above, clearly warrant, as do the overall interests of
justice, the order for renewal being maintained in this case.
Orders
[95] I therefore order as follows:
(1) The respondent’s oral application for a declaration of informal service is
dismissed.
(2) The applicant’s application to set aside the order for renewal is dismissed.
Costs
[96] Costs follow the event although they remain within the discretion of the court. In
the circumstances of this case, my preliminary view is that the appropriate order for
costs is that the costs of the application are the respondent’s costs in the proceeding.
[97] But I will allow the parties the opportunity to provide written outlines of no more
than two pages if another costs order is sought. These outlines are to be emailed to
my associate by 4.00pm Monday 10 May 2021. Otherwise the cost order
foreshadowed will be made.
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Official source: https://www.sclqld.org.au/caselaw/QDC/2021/075