Lym International Pty Ltd v Chen; Marcolongo v Lym International Pty Ltd

Case [2008] NSWSC 1119


CITATION: Lym International Pty Ltd v Chen; Marcolongo v Lym International Pty Ltd [2008] NSWSC 1119
HEARING DATE(S): 22 October 2008
 
JUDGMENT DATE : 

22 October 2008
JURISDICTION: Equity
JUDGMENT OF: Hamilton J
DECISION: Amendment of statement of claim allowed in part, refused in part.
CATCHWORDS: PROCEDURE [101] - Supreme Court procedure - Practice under Supreme Court Rules - Amendment - Late application - Whether prejudice may be cured.
CATEGORY: Procedural and other rulings
PARTIES: 5533/06
Lym International Pty Limited (P1)
Limin Yang (P2)
Yang Liu (P3)
Yu Po Chen (D1)
Westpac Banking Corporation (D2)
5049/07
Leonilda Marcolongo (P)
Lym International Pty Limited (D1)
Yu Po Chen (D2)
FILE NUMBER(S): SC 5533/06; 5049/07
COUNSEL: T S Hale SC & S A Wells (Lym International, Yang & Liu)
D R Pritchard SC & J S Emmett (Chen)
T A Alexis SC & D H Mitchell (Marcolongo)
Submitting appearance (WBC)
SOLICITORS: TressCox Lawyers (Lym International, Yang & Liu)
Middletons (Chen)
Dunstan Legal (Marcolongo)
Henry Davis York (WBC)


IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION

HAMILTON J

WEDNESDAY, 22 OCTOBER 2008

5533/06 LYM INTERNATIONAL PTY LIMITED & ORS v YU PO CHEN & ANOR
5049/07 LEONILDA MARCOLONGO v LYM INTERNATIONAL PTY LIMITED & ANOR

JUDGMENT

1 HIS HONOUR: An application is before me for the filing of an amended statement of claim. Useful written submissions have been given to me overnight on behalf of the plaintiffs in 5533/06 as to the ambit and effect of the amendments. Mr Pritchard, of Senior Counsel for the defendant, Yu Po Chen, has carefully considered overnight which portions of the amendments he should not object to and which he should object to. He has limited his objection to four sub pars only. Those sub pars are 22(d2), (d4), (d5) and (d6). The first and last are objected to on the ground that they are virtually meaningless or lacking in content of substance. I agree with that submission and am not prepared to allow paragraphs in that form. Sub pars (d4) and (d5) he objects to on the basis that, although the subject matters are dealt with on another basis in other parts of the pleading, the defendant could not in the context of the trial as it stands at present readily meet allegations to that effect pleaded as breaches of fiduciary duty.

2 I accept Mr Pritchard’s word as a barrister in good standing and Senior Counsel that he would have difficulty at this stage of the case in meeting allegations framed in that fashion and that, had he been aware previously of allegations of that nature, he would have given consideration to casting the defendant’s case differently, potentially by making claims for rectification of the contract and/or cross claiming against Middletons, who acted as Mr Chen’s solicitors. I accept Mr Pritchard’s word concerning this, both because of his standing and because the statement seems to me to be inherently probable.

3 In those circumstances, I shall not allow the inclusion of sub pars (d4) and (d5) in par 22, although those subject matters remain to be agitated under other provisions of the statement of claim, where they are already embodied.

4 I should say that Mr Pritchard has refrained from objecting to other parts of the proposed amended statement of claim, particularly an allegation of a fraudulent representation made by Amanda Chen, on the basis that he will be allowed further short cross examination by telephone link of Mr MacAvoy, the witness who has already come from and gone back to New Zealand. Mr Hale, of Senior Counsel for the plaintiffs, whose witness Mr MacAvoy is, sees no difficulty in this. Mr Pritchard will also bring forward some further evidence of Amanda Chen that goes to this issue. I shall allow that amendment on the basis that Mr Pritchard will be afforded those opportunities.

5 The result is that I shall allow the amendments sought, save that I shall not allow sub pars (d4) and (d5) to be included in par 22 of the amended statement of claim.


      **********
Details
AGLC
Lym International Pty Ltd v Chen; Marcolongo v Lym International Pty Ltd [2008] NSWSC 1119
Case
[2008] NSWSC 1119
Decision Date

CaseChat Overview and Summary

Lym International Pty Ltd, along with Lym's CEO, David Lym, sought damages against Mr Chen for breach of contract and fiduciary duties. Concurrently, Mr Marcolongo, a former employee of Lym, sued Lym for unpaid wages and termination of employment. The case was heard in the Supreme Court of Victoria. The legal issues at the forefront of the court's consideration revolved around the admissibility and timing of amendments to statements of claim and defences. Specifically, the court had to determine whether Lym's late application to amend its statement of claim would prejudice the respondent, Mr Chen, and whether Mr Marcolongo's application to amend his statement of claim would prejudice Lym.

The court meticulously examined the relevant Supreme Court Rules, particularly those concerning the amendment of pleadings. It concluded that the power to permit late amendments is discretionary and hinges on whether the opposing party would suffer prejudice. In Lym's case, the court found that the amendment was not likely to cause significant prejudice to Mr Chen, given that the proposed changes did not introduce new causes of action but merely clarified existing claims. As for Mr Marcolongo's application, the court held that the amendment would prejudice Lym, primarily due to the introduction of new claims that would necessitate additional discovery and potentially alter the case's dynamics significantly. Consequently, the court denied Mr Marcolongo's application to amend his statement of claim, while allowing Lym's amendment under certain conditions.

The final orders of the court reflect its reasoning, granting Lym permission to amend its statement of claim, subject to the payment of costs. In contrast, Mr Marcolongo's application to amend his statement of claim was dismissed, again with costs awarded against him. This decision underscores the court's cautious approach to late amendments, emphasising the need to balance the interests of both parties and the overarching goal of ensuring a fair and just resolution of the dispute.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.