BHAGAT v GLOBAL CUSTODIANS LIMITED [2002] NSWCA 160

BHAGAT v GLOBAL CUSTODIANS LIMITED [2002] NSWCA 160

Although Young J erred in finding that there was no dispute between Mr Bhagat and the Greenlees when the letters were sent, the letters were admissible because they were not communications made in connection with an attempt to negotiate a settlement and, alternatively, there were reasonable grounds to find they were sent in furtherance of contempt within s131(2)(j). The letters contained false assertions about the legality of payment of legal costs, threats of further proceedings and criminal proceedings, and pressure directed at vulnerable recipients to withdraw from or not participate in litigation. Their combined effect constituted improper pressure interfering with the administration...

Jurisdiction
Australia
Judgment Date
29 May 2002
Procedural Posture
Appeal From Contempt Findings and Consequential Orders / Appeals Pursuant to Leave to Appeal From Orders of Young J in the Supreme Court, Equity Division
Outcome
Appeals dismissed with costs.
Legal Topics
['improper Pressure on Parties to Withdraw From Proceedings' 'without Prejudice Communications' 'evidence Act 1995 S131' 'admissibility of Settlement Communications' 'interference With the Administration of Justice' 'supreme Court Procedural Rules']
['contempt of Court' 'evidence' 'civil Procedure'] ['improper Pressure on Parties to Withdraw From Proceedings' 'without Prejudice Communications' 'evidence Act 1995 S131' 'admissibility of Settlement Communications' 'interference With the Administration of Justice' 'supreme Court Procedural Rules']

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Procedural Posture

Appeal From Contempt Findings and Consequential Orders / Appeals Pursuant to Leave to Appeal From Orders of Young J in the Supreme Court, Equity Division

Legal Issues

  1. 1 ["Whether letters marked 'WITHOUT PREJUDICE' were inadmissible under s131 of the Evidence Act 1995." 'Whether the letters were communications made in connection with an attempt to negotiate a settlement of a dispute.' 'Whether the s131(2)(j) exception applied because the letters were made in furtherance of an offence or act rendering a person liable to a civil penalty.' 'Whether the letters constituted contempt of court by applying improper pressure to persons to withdraw or not participate as plaintiffs in proceedings.' 'Whether a procedural objection based on Part 11 rule 2 of the Supreme Court Rules affected the contempt motion.']

Ratio Decidendi

Although Young J erred in finding that there was no dispute between Mr Bhagat and the Greenlees when the letters were sent, the letters were admissible because they were not communications made in connection with an attempt to negotiate a settlement and, alternatively, there were reasonable grounds to find they were sent in furtherance of contempt within s131(2)(j). The letters contained false assertions about the legality of payment of legal costs, threats of further proceedings and criminal proceedings, and pressure directed at vulnerable recipients to withdraw from or not participate in litigation. Their combined effect constituted improper pressure interfering with the administration...

Court Disposition

Appeals dismissed with costs.

Orders

  • ['Appeals dismissed with costs.']