Permanent Stay for an Abuse of Process

The Supreme Court of Queensland has granted a permanent stay of proceedings against the plaintiff in Fudo Ninjas Pty Ltd v HSW Nominees Pty Ltd. Michael Henry SC acted for the defendant; the successful applicant for the stay.

The plaintiff's claim in the Supreme Court was for alleged wrongful repudiation of an agreement for lease with a 10 year term and a 10 year option. The plaintiff claimed not less than $16 million for loss of opportunity. The proceedings were stayed because they constituted an abuse of process of the Court. The abuse arose because, prior to the commencement of the proceedings in the Supreme Court, the plaintiff sued the defendant in the Magistrates Court of Queensland in third party proceedings claiming indemnification in the sum of up to $111,314.92 in the event that the plaintiff was liable to a third party in the principal proceedings in the Magistrates Court in up to that amount. The plaintiff's claim for indemnification in the Magistrates Court was based upon the same alleged wrongful repudiation upon which it sued the defendant for loss of opportunity in the Supreme Court proceedings. The latter proceedings occasioned unjustifiable oppression to the defendant and brought the administration of justice into disrepute. Consequently, they were an abuse of process.

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