Liu v Zhong — Supreme Court refused to stay Local Court proceedings pending an interlocutory appeal

Case
Liu v Zhong
Court
Supreme Court of New South Wales (Australia)
Judge
Elkaim
Date Decided
2 October 2026
Citation
[2026] NSWSC 1218
Topics
Civil procedure, Stay of proceedings, Interlocutory appeal, Costs

Background

The underlying Local Court claim arose from an August 2024 vehicle collision. Ms Xiao Mei Zhong sought repair and replacement-vehicle hire costs from Ms Ruihe Liu, whose defence admitted the collision and negligence but disputed Ms Zhong’s standing and the amount of damages. In June 2026, the Local Court permitted Ms Zhong to amend her claim by adding Ms Nuo Xu, the BMW’s driver and alleged bailee, as a second plaintiff.

Ms Liu commenced Supreme Court proceedings by summons on 9 July 2026, challenging the Local Court’s interlocutory decision to allow the amendment. The substantive Local Court hearing then took place on 11 August 2026, after which judgment was reserved. On 7 September 2026, Ms Liu filed a Supreme Court motion seeking an immediate stay of the Local Court proceedings pending determination of her summons, or alternatively a stay of enforcement if the Local Court delivered final judgment first.

The Court’s Holding

Elkaim AJ dismissed the stay motion. Because the Local Court hearing had already concluded and no further preparation was required, overturning the amendment ruling before final judgment would not save time or costs. Any valid objection to the amendment would remain available after judgment, when Ms Liu could pursue the appeal rights provided by the Local Court Act 2007 (NSW), potentially together with any other appeal grounds arising from the final decision.

The Court regarded the motion—and probably the underlying summons—as a waste of time and money and contrary to the case-management objectives in s 56 of the Civil Procedure Act 2005 (NSW). Ms Liu was ordered to pay the respondents’ costs of the motion, except for costs associated with preparing one affidavit that the Court considered part of an excessive volume of largely irrelevant material.

Key Takeaways

  • A stay was unnecessary where the trial had finished, judgment was reserved, and no further preparation costs could be avoided.
  • An objection to an interlocutory amendment may be addressed in an appeal from the eventual final judgment, alongside any additional appeal grounds.
  • Disproportionate and irrelevant affidavit material can affect a successful party’s recovery of costs.

Why It Matters

The ruling underscores that interlocutory appeals and stay applications should serve a practical case-management purpose. Once the lower-court hearing is complete, a party will ordinarily need a compelling reason to interrupt the delivery or enforcement of judgment rather than await the final decision and use the available appellate process.

It also highlights the Court’s willingness to apply proportionality principles to both the conduct of procedural litigation and costs, particularly where the expense and evidentiary volume bear little relationship to the underlying dispute.

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