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Stay of Proceedings - An Easy Explanation of Halting Litigation

23/02/2023 by
The Marketing Team
A stay of proceedings is a legal term that refers to a temporary halt or suspension of a court case. The stay can be ordered by the court or requested by one of the parties involved in the case. It essentially puts the case on hold, effectively delaying any further legal proceedings until the stay […]

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A stay of proceedings is a legal term that refers to a temporary halt or suspension of a court case. The stay can be ordered by the court or requested by one of the parties involved in the case. It essentially puts the case on hold, effectively delaying any further legal proceedings until the stay is lifted. There are various reasons why a stay of proceedings may be granted, including to allow time for negotiations, to give parties time to gather evidence, or to await a decision in a related case. Ultimately, a stay of proceedings can provide parties with some breathing room to reassess their positions and potentially reach a resolution without the need for further litigation.

What is an issue of jurisdiction?

During an issue of jurisdiction on a stay of proceeding, the court is determining whether it has the legal authority to hear the case or if another court has jurisdiction. If the court decides that it does not have jurisdiction, then the proceedings will be halted until the issue is resolved. This may involve transferring the case to a different court or dismissing it altogether. The court will consider various factors, including the location of the parties involved, the subject matter of the case, and any relevant laws or agreements that may affect jurisdiction.

When considering an issue of jurisdiction on a stay of proceedings, the court would consider several factors such as :

  • the nature and subject matter of the dispute,
  • the location of the parties and witnesses,
  • the applicable law,
  • the availability of evidence
  • the convenience of the parties,
  • and the fairness and efficiency of the judicial process.

The court may also consider the parties' arguments and submissions, and any relevant legislation or precedent. Ultimately, the goal is to ensure that the case is heard in the appropriate court with the proper jurisdiction.

No cause of action

During a stay of proceeding, no cause of action can be pursued by the parties involved. This means that any legal action or claim cannot be pursued until the stay has been lifted. A stay of proceeding is usually granted by a court to allow for a temporary suspension of legal proceedings, giving the parties time to resolve any disputes or issues that may arise outside of the court system. It is important to note that during a stay of proceeding, parties are still obligated to comply with any existing court orders or obligations.

a stay of proceedings at a court

What is a Vexatious Litigant?

Vexatious litigants are individuals who persistently engage in frivolous, meritless, or unreasonable legal action, which causes significant harm to the judicial system and other parties involved. In New South Wales, Australia, the Vexatious Proceedings Act 2008 provides the court with the power to declare a person as a vexatious litigant, thereby restricting their ability to initiate legal proceedings without permission. During a stay of proceedings, a vexatious litigant may attempt to continue their legal action, causing further delay and expense. The Act enables the court to impose sanctions, including dismissal of the case and award of costs against the litigant, in instance that they disregard the stay of proceedings order.

Under the Vexatious Proceedings Act 2008 (NSW), a litigant may be considered vexatious if they have:

  • repeatedly initiated legal proceedings that are deemed to be frivolous, without merit, or aimed at harassing the other party. The circumstances that may lead to a litigant being labeled vexatious include the persistent filing of claims that have already been dismissed or settled, making groundless accusations or making allegations that have no basis in fact, or attempting to relitigate issues that have already been resolved by the courts.
  • Additionally, if a litigant is found to be using the legal system to harass or intimidate others, they may also be deemed vexatious.

Legal Advice

If you have any questions around the legal matters concerning unconscionable conduct in Australia, please do not hesitate to contact our sister company, Legal Kitz to assist you. You can book a free 30-minute consultation with their experienced and highly qualified team via our website now.

Additionally, you can also check out our Business Kitz Subscription to access our full range of legal, commercial and employment document templates to begin your business with a solid foundation that ensures compliance.  

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The Marketing Team
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