Aircraft Structural Contractors (ASC) and Nauru Air Corporation (NAC) were parties to an agreement for aircraft maintenance at Brisbane Airport. ASC brought proceedings against NAC in the Federal Court claiming breaches of fiduciary duties alleged to have resulted from a claimed joint venture, misleading or deceptive conduct and breaches of copyright. NAC denied the allegations.
The Court heard two interlocutory applications. The first was an application brought by ASC for the proceeding to be determined by way of separate questions. The Court dismissed ASC’s application.
The second was an application brought by NAC for the costs associated with ASC’s amendments to its statement of claim to be taxable and payable immediately. The Court granted NAC’s application because ASC had abandoned its most substantial claims approximately 18 months after it commenced proceedings and NAC had spent significant costs responding to those abandoned claims. The Court rejected ASC’s evidence that the order would stultify the proceedings. The Court ordered that ASC pay NAC’s costs thrown away as a result of its amendments taxable and payable immediately.
Damian Clothier KC and Sarah Spottiswood appeared for the respondent, instructed by K & L Gates.
The judgment is published here.
