Chu v Lin, in the matter of Gold Stone Capital Pty Ltd (deregistered) (Strike Out) [2024] FCA 611

Chu v Lin, in the matter of Gold Stone Capital Pty Ltd (deregistered) (Strike Out) [2024] FCA 611

The specific allegation that the first defendant forged the signatures of Mr Darmali or Xiao Wu was made too late for the defendant to undertake necessary forensic investigation; thus, the pleading 'forged or' was struck out from the reply due to irremediable prejudice. Other allegations of fraud were not prejudicial and could be managed at trial.

Parties
First Plaintiff: Hong Chu; Second Plaintiff: Xueping Xu; First Defendant: Louise Carol Lin; Second Defendant: Hai Zong Cai; Third Defendant: David Darmali; Fourth Defendant: Fiducia Asset Management Pty Ltd; Fifth Defendant: Xiao Wu; Sixth Defendant: Josephine Darmali
Jurisdiction
Australia
Judgment Date
04 June 2024
Procedural Posture
Application to Strike Out Pleading / Interlocutory Application
Outcome
Plaintiffs' pleading partially struck out; application otherwise dismissed
Legal Topics
Strike Out Application, Forgery Allegations, Late Amendment, Prejudice
Practice and Procedure Commercial Law Strike Out Application Forgery Allegations Late Amendment Prejudice

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2
Sign in to unlock

Parties

Hong Chu

First Plaintiff

Xueping Xu

Second Plaintiff

Louise Carol Lin

First Defendant

Hai Zong Cai

Second Defendant

David Darmali

Third Defendant

Fiducia Asset Management Pty Ltd

Fourth Defendant

Xiao Wu

Fifth Defendant

Josephine Darmali

Sixth Defendant

Procedural Posture

Application to Strike Out Pleading / Interlocutory Application

Legal Issues

  1. 1 Whether the plaintiffs should be permitted to plead an allegation of forgery against the first defendant shortly before trial
  2. 2 Whether the late allegation causes procedural prejudice to the first defendant

Ratio Decidendi

The specific allegation that the first defendant forged the signatures of Mr Darmali or Xiao Wu was made too late for the defendant to undertake necessary forensic investigation; thus, the pleading 'forged or' was struck out from the reply due to irremediable prejudice. Other allegations of fraud were not prejudicial and could be managed at trial.

Court Disposition

Plaintiffs' pleading partially struck out; application otherwise dismissed

Orders

  • The words, 'forged or', in paragraph 4(b) of the plaintiffs' reply to the defence of the first defendant be struck out.
  • The interlocutory application dated 3 June 2024 otherwise be dismissed.