Clone Pty Ltd v Players Pty Ltd (In Liquidation) (Receivers & Managers Appointed) [2018] HCA 12

Clone Pty Ltd v Players Pty Ltd (In Liquidation) (Receivers & Managers Appointed) [2018] HCA 12

The power of a court to set aside its own perfected judgment is strictly limited to cases of actual fraud, clearly pleaded and proved; it does not extend to less serious misconduct or malpractice, and the applicant is not required to prove reasonable diligence in discovering the fraud prior to judgment. As no fraud was pleaded or proved by Players Pty Ltd, the appeals must be allowed.

Parties
Appellant: Clone Pty Ltd; Respondent: Players Pty Ltd (In Liquidation) (Receivers & Managers Appointed); Respondent: C D Bleby SC, Solicitor-General for the State of South Australia
Jurisdiction
Australia
Judgment Date
21 March 2018
Procedural Posture
Appeal / High Court Judgment on Appeal From the Full Court of the Supreme Court of South Australia
Outcome
Appeals allowed
Legal Topics
Setting Aside Perfected Judgment, Fraud in Litigation, Finality of Litigation, Malpractice by Legal Representatives, Appellate Procedure

Case Brief

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Parties

Clone Pty Ltd

Appellant

Players Pty Ltd (In Liquidation) (Receivers & Managers Appointed)

Respondent

C D Bleby SC, Solicitor-General for the State of South Australia

Respondent

Procedural Posture

Appeal / High Court Judgment on Appeal From the Full Court of the Supreme Court of South Australia

  1. 1 Does the court's equitable power to set aside a perfected judgment extend to malpractice not amounting to fraud?
  2. 2 Is the power to set aside a perfected judgment conditional upon the unsuccessful party having exercised reasonable diligence to discover fraud or malpractice during previous proceedings?

Ratio Decidendi

The power of a court to set aside its own perfected judgment is strictly limited to cases of actual fraud, clearly pleaded and proved; it does not extend to less serious misconduct or malpractice, and the applicant is not required to prove reasonable diligence in discovering the fraud prior to judgment. As no fraud was pleaded or proved by Players Pty Ltd, the appeals must be allowed.

Court Disposition

Appeals allowed

Orders

  • In Matter No A22/2017: Appeal allowed. Set aside orders 3, 4 and 5 of the Full Court of the Supreme Court of South Australia dated 8 December 2016; in their place, order that the appeal to the Full Court be allowed, the orders of Hargrave AJ dated 9 November 2015 in SCCIV-04-319 be set aside, the application be...
  • In Matter No A23/2017: Appeal allowed. Set aside orders 3, 4 and 5 of the Full Court of the Supreme Court of South Australia dated 8 December 2016; in their place, order that the appeal to the Full Court be allowed, the orders of Hargrave AJ dated 9 November 2015 in SCCIV-10-819 be set aside, the action be...