Oztech Pty Ltd v Public Trustee of Queensland (No 6) [2016] FCA 391

Oztech Pty Ltd v Public Trustee of Queensland (No 6) [2016] FCA 391

The existence and quantum of loss or damage are inextricably connected with the determination of when a hypothetical liquidation would have commenced, which cannot itself be fixed until questions of breach are determined. Therefore, the split trial should not resolve the issue of loss/damage at its first stage as proposed by the respondent. Further, the applicant did not properly comply with the conditions for leave to amend by failing to provide particulars of knowledge as ordered in certain key paragraphs; only those deficient parts should be struck out. Other requests for particulars can be addressed after delivery of expert reports.

Parties
Applicant: Oztech Pty Ltd; Respondent: Public Trustee of Queensland
Jurisdiction
Australia
Judgment Date
19 April 2016
Procedural Posture
Interlocutory Application in Commercial/corporations Proceeding / Ruling on Scope of Split Trial and Interlocutory Applications for Strike Out/further Particulars
Outcome
Most of respondent's application for strike out/further particulars refused or stood over; specific paragraphs of amended statement of claim struck out to limited extent; parties ordered to bring in agreed form of split trial order.
Legal Topics
Split Trial, Pleadings, Particulars, Leave to Amend Statement of Claim
Practice and Procedure Corporations Law Split Trial Pleadings Particulars Leave to Amend Statement of Claim

Case Brief

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Parties

Oztech Pty Ltd

Applicant

Public Trustee of Queensland

Respondent

Procedural Posture

Interlocutory Application in Commercial/corporations Proceeding / Ruling on Scope of Split Trial and Interlocutory Applications for Strike Out/further Particulars

Legal Issues

  1. 1 Whether existence of loss or damage should be determined at first stage of split trial where loss/damage is ingredient of cause of action
  2. 2 Whether conditions on which leave to amend was granted have been satisfied
  3. 3 Whether party entitled to further particulars and the adequacy of particulars provided

Ratio Decidendi

The existence and quantum of loss or damage are inextricably connected with the determination of when a hypothetical liquidation would have commenced, which cannot itself be fixed until questions of breach are determined. Therefore, the split trial should not resolve the issue of loss/damage at its first stage as proposed by the respondent. Further, the applicant did not properly comply with the conditions for leave to amend by failing to provide particulars of knowledge as ordered in certain key paragraphs; only those deficient parts should be struck out. Other requests for particulars can be addressed after delivery of expert reports.

Court Disposition

Most of respondent's application for strike out/further particulars refused or stood over; specific paragraphs of amended statement of claim struck out to limited extent; parties ordered to bring in agreed form of split trial order.

Orders

  • By 26 April 2016, parties to bring in agreed form of order defining trial scope as per [21] of reasons.
  • Specified allegations in paragraphs 92C.1 and 92I.3 of amended statement of claim struck out (except for two alleged Events of Default), as detailed.