G&S Engineering Services Pty Ltd v MACH Energy Australia Pty Ltd (No 4) [2021] NSWSC 1052

G&S Engineering Services Pty Ltd v MACH Energy Australia Pty Ltd (No 4) [2021] NSWSC 1052

Paragraph 45 of the cross-claim in its existing and proposed amended forms constitutes an allegation of fraud, and, as such, is required to be pleaded with specificity and particularity regarding the knowledge and state of mind of the individuals involved and how such states are attributable to the cross-defendants. The pleadings fail to meet this standard and are thus struck out. Leave to amend is refused except for an unrelated uncontroversial amendment.

Jurisdiction
Australia
Judgment Date
23 August 2021
Procedural Posture
Application to Strike Out and for Leave to Amend Cross Claim (equity Technology and Construction List) / Interlocutory Ruling on Strike Out and Amendment Motions
Outcome
Strike out application granted; leave to amend refused except as to paragraph 35(a); costs awarded to cross-defendants
Legal Topics
['pleading Fraud' 'particularity and Specificity in Pleadings' 'strike Out Applications' 'amendment of Cross Claims']
['civil Procedure' 'equity' 'construction Law'] ['pleading Fraud' 'particularity and Specificity in Pleadings' 'strike Out Applications' 'amendment of Cross Claims']

Case Brief

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Procedural Posture

Application to Strike Out and for Leave to Amend Cross Claim (equity Technology and Construction List) / Interlocutory Ruling on Strike Out and Amendment Motions

Legal Issues

  1. 1 ['Whether the existing and proposed amended cross-claim adequately pleaded and particularised allegations of fraud' 'Whether the impugned allegations constitute an allegation of fraud' 'Whether the proposed amendments rectify any deficiency in pleading fraud' 'Whether the pleadings should be struck out or amendment refused for lack of particularity' 'Whether the application to strike out was unduly delayed']

Ratio Decidendi

Paragraph 45 of the cross-claim in its existing and proposed amended forms constitutes an allegation of fraud, and, as such, is required to be pleaded with specificity and particularity regarding the knowledge and state of mind of the individuals involved and how such states are attributable to the cross-defendants. The pleadings fail to meet this standard and are thus struck out. Leave to amend is refused except for an unrelated uncontroversial amendment.

Court Disposition

Strike out application granted; leave to amend refused except as to paragraph 35(a); costs awarded to cross-defendants

Orders

  • ['Paragraphs 45 and 47 and the reference to paragraph 47 in the particulars to paragraph 48 of the Amended Technology and Construction List Cross-Claim Statement are struck out.' 'Leave granted to amend paragraph 35(a) as indicated in the proposed further amended cross-claim.' "Cross-claimants' motion otherwise...