Computer Accounting and Tax Pty Ltd (in liq) v Professional Services of Australia Pty Ltd [No 7]

[2014] WASC 360

Supreme Court of Western Australia

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Interrogate

Catchwords

1. Practice and Procedure
2. › Parties
3. › Joinder
4. › Addition of parties
5. › Order 18 r 6(2) Rules of the Supreme Court (WA)
6. › Test of direct effect
7. › Whether third-party payer of litigation costs may be joined
8. › Whether discretion to permit joinder should be exercised at late stage of proceedings
1. Practice and Procedure
2. › Parties
3. › Joinder
4. › Substitution or addition of parties on assignment or transfer
5. › Order 18 r 7(2) Rules of the Supreme Court (WA)
6. › Whether charge over costs constitutes assignment before costs determined
1. Practice and Procedure
2. › Parties
3. › Joinder
4. › Discretion to refuse joinder
5. › Late application
6. › Availability of alternative means to protect interests

Quick Take

A shareholder's interest in a company that is a party to litigation is insufficient to satisfy the test of direct effect for joinder under O 18 r 6(2). A third-party payer of litigation costs may satisfy the test of direct effect, but joinder may be refused in the court's discretion where the application is made at a very late stage and existing orders provide an alternative means to protect the applicant's interests. A charge over costs 'owing and payable' does not work an assignment under O 18 r 7(2) until costs orders have been determined.