PRACTICE AND PROCEDURE - joinder of parties - whether applicant a necessary party - whether applicant has a reasonably arguable case that its legal rights will be directly affected
Quick Take
1An obligation to negotiate in good faith to create new contractual rights and obligations (as distinct from an obligation to negotiate in good faith to resolve disputes arising from an existing contract) is very unlikely to be enforceable, distinguishing United Group Rail Services Ltd v Rail Corporation New South Wales [2009] NSWCA 177.
2Joinder under UCPR r 6.24(1) requires the applicant to demonstrate a reasonably arguable case that its legal rights will be directly affected by the orders sought; where the asserted rights rest on a likely unenforceable agreement to negotiate, this threshold is not met.
3Discretionary factors weighing against joinder include delay in applying (awareness of proceedings since July but application made only on the eve of final hearing) and the absence of any proposed evidence where existing defendants adequately represent the applicant's interests.
Case Details
Citation[2010] NSWSC 1042
CourtNSWSC
JurisdictionNew South Wales
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