290 SYDNEY LAW REVIEW

EXTENSION OF TIME: SOLICITOR'S OVERSIGHT, NEGLECT

OR DEFAULT
"God forbid", said Abbott, C.J. in Montriou v. Jefries; "that it should
be imagined that an attorney, or a counsel, or even a judge, is bound to know
all the law." A modern illustration of this dictum is to be found in the increasing
number of applications for an extension of the time prescribed by statute for
the giving of a notice of action where the cause of the delay in giving such
notice is some oversight, neglect or default on the part of a solicitor. Such
applications arise most frequently pursuant to s.30(2) (b) (ii) of the Motor
Vehicles (Third Party Insurance) Act2 in respect of notices of intended action
to the Nominal Defendant, and most of the principles applicable to such
applications have been laid down in decisions under that section. However,
there is very little difference between the words of that section and the words
of the sections of other Acts which provide for the extension of a period for
giving notice and accordingly it is submitted that the decisions under the Motor
Vehicles (Third Party Insurance) Act, at least so far as they relate to a
solicitor's default as a ground for extension of time, are equally applicable
to applications under other Acts.
Section 30(2) (b) (ii) of the Motor Vehicles (Third Party Insurance) Act,
so far as relevant, provides:
No action to enforce any such claim (i.e. a claim in respect of death
or personal injury resulting from the use on a public highway of an
uninsured or unidentified motor vehicle) shall lie against the nominal
defendant unless notice of intention to make a claim is given by the
claimant to the nominal defendant . . . within a period of three months
after the occurrence out of which the claim arose, or within such further
period as the court, upon sufficient cause being shown, may allow.
Applications under this section are made to the Prothonotary on summons
supported by affidavits. It has been held that whether or not the facts found
on such an application amount to sufficient cause is a question of law? and
accordingly the unsuccessful party before the Prothonotary has a right of
reference to a judge in chambers, from whom an appeal or reference lies to
the Full Court.
The earliest of the decisions to be considered is that of Brereton, J. in
Dunne v. The Nominal D e f e n d ~ n t ,which
~ was an appeal by way of reference
from the Prothonotary's order granting an extension of time for serving notice
on the nominal defendant pursuant to s.30(2) (b) (ii) of the Motor Vehicles
(Third Party Insurance) Act. The Prothonotary found that the applicant had
been knocked down and injured on 18th March, 1953, that she had spent
eleven days in hospital and thereafter had been confined to her residence for
some time. On 24th March a friend of the applicant was authorised to seek
legal advice, as a result of which certain steps were taken by her solicitor.
On 7th June, her solicitor collapsed, and it was not until 24th June, six days
after the expiry of the three month period, that another solicitor in his employ
who took over the matter gave notice by letter to the Nominal Defendant, he
having previously been unaware of the requirements of the Act. Because of her
injuries the applicant did not personally consult her solicitor until 15th July,
and it was not until 27th July that the solicitor handling the matter realised
that the notice was out of time.
Brereton, J. indicated that in his opinion the delay was caused by the
' (1825) 2 C. & P.
113, 116 (N.P.).
'Motor Vehicles (Third Party Insurance) Act, 1942-1951 (N.S.W.), Act No. 15, 1942-
Act No. 59, 1951.
'Smith v. The Nominal Defendant (1955) 72 W.N. (N.S.W.) 369, 371.
'(1954) 71 W.N. (N.S.W.) 87.
 EXTENSION OF TIME 291
failure of the applicant's solicitor to give the prescribed notice within three
months, which failure was contributed to both by the applicant's own con-
dition, which prevented her calling at or telephoning her solicitor's office, and
by her solicitor's own medical condition.
In the course of his judgment upholding the Prothonotary's decision, his
Honour made the following observations:
What is a sufficient cause depends, in my judgment, firstly on the
extent of the delay. That may not be invariably the case, but it seems
to one that by and large a short delay can be sufficiently excused more
readily and for less weighty reasons than a long delay. It may well be
that an office boy given a letter to post containing a notice of action puts
it in his pocket and forgets to post it. That may excuse a delay of a few
days but would hardly excuse a delay of three months. Secondly, I think
that what is sufficient must depend on reasons personal to the person
responsible for the delay whether or not that person is the prospective
plaintiff. What is sufficient for one person in one particular set of circum-
stances may not be sufficient for another in another set of circumstances.
Generally speaking, I should think that when a solicitor is responsible,
grave and weighty reasons would have to be shown before one could regard
them as sufficient, because he is a person necessarily charged with the
responsibility of attending to matters of this sort. But again, one must look
at the length of the delay and the circumstances of it. . . .
I am certainly not prepared to hold that every oversight by a solicitor
who has been properly instructed, every failure by him to give notice in
time, would amount to a sufficient excuse. I do not consider for a moment
that the Legislature intended that the Section can be rendered virtually
nugatory by allowing every solicitor who forgot to give notice in time, to
come along to the Court and say, 'This is my oversight; it is not the pros-
pective plaintiff's fault and therefore a sufficient cause has been shown.'
Solicitors are expected to know the requirements of statutes and to comply
with them, and they must take the consequences if they fail to do so.
But the circumstances here are such that I think, in view of the shortness
of the delay, in view of the state of the solicitor's health at the time, and
in view of the state of the applicant's own health at the time, I can regard
the solicitor's failure in this particular instance as being a sufficient cause.5
The next decision in point is Delaney v. Flynn? a decision of the Full
Court7 on appeal from the decision of a judge in chambers reversing on reference
a decision of the Prothonotary. The applicant had issued a Supreme Court writ
in respect of an injury which also fell within the provisions of the Workers'
Compensation The writ having lapsed by reason of the failure to file a
declaration within one year, it was necessary to obtain the leave of the court
pursuant to s.63(3) of the Act to commence fresh proceedings out of time.
The first writ had expired on the 16th November, 1952 and on 17th October
in that year the applicant's solicitor wrote to his client requesting her instructions
as to certain settlement negotiations. She had flown to Perth to see her sick
mother and failed to answer the letter. Herron, J? considered that the failure
to renew the writ was due partly to the probability of settlement and partly to
the failure of the applicant to contact her solicitor. The appeal was dismissed
and the applicant given leave to commence proceedings out of time.
The major part of the court's judgment is concerned with the jurisdiction
pf the Prothonotary to have heard the application in the first instance and the
existence of a right of appeal to the Full Court, but the following extracts from
Id. at 89.
' (1955) 55 S.R. (N.S.W.) 520.
*Maxwell, Herron and Maguire, JJ.
'Workers' Compensation Act. 1926-1954 (N.S.W.) Art Nn 15 1926-Art Nn 18 1954
(1955) 55 S.R. 520, 523-24
I 292 SYDNEY LAW REVIEW

I the judgments delivered are relevant to the present question:

I think it fairly states the matter shortly to put it this way, that the
ground on which his Honour reached a conclusion that there was sufficient
cause was that any default which existed was really the fault of the legal
adviser of the applicant. In my opinion that would be sufficient cause
within the section, and therefore his Honour's decision on the merits was
right.1°
I
I agree that it is a reasonable thing to do to make an order for the
extension of the prescribed period, if the applicant's case has been allowed
to lapse through what has been described by the learned presiding Judge,
my brother Maxwell, as the fault of the legal adviser of the applicant. I
would not, however, like it to be thought for one moment that I subscribe
to any view that this means that the legal adviser to the applicant fell
short in any way of the proper professional standards required of him. ...
I do not wish to deal with the merits of the matter except to say that a
case where the action ceases or comes to an end because the writ expires
is a matter which solely is, I think, the concern of the solicitor and not the
applicant herself, and it is a foundation for saying that sufficient cause
has been shown or that it would be reasonable to make an order for the
extension of the prescribed period.ll
In making the order of the court, Maxwell, J. associated himself with the above
remarks concerning the reference to the default of the solicitor.12
Martin v. The Nominal Defendant13 is a decision of Walsh, J. in chambers
upholding on reference the decision of the Prothonotary granting an extension
of time for service of notice of intended action pursuant to s.30(2) (b) (ii)
of the Motor Vehicles (Third Party Insurance) Act. The applicant in this case
was found to have consulted a solicitor comparatively shortly after his accident
and to have assumed that the solicitor would take any necessary action. There
was some misunderstanding between the applicant and the solicitor as to the
nature of the instructions given, and particularly whether they were instructions
to take up the case or advices that the solicitor would later be instructed.
Certainly the applicant did ask for legal advice as to his position, and he was
found to have acted reasonably throughout. Thereafter the applicant instructed
a second solicitor to act on his behalf and after giving advice as to the
importance of the statutory time limits, such solicitor became aware, about
22nd September, 1953, that no notice had been given to the Nominal Defendant,
the three month period having then expired.
A notice was given on 30th October, the second solicitor taking the view
that no notice could be given before the time had been extended; and the
applicant having applied for legal assistance, he did not wish to seek an exten-
sion of time until the result of such application was known. It was only when
such a course was suggested by the Public Solicitor that the second solicitor
realised that a notice could be given before obtaining the court's leave to do
so. His Honour felt that the second solicitor could not be said to have been
dilatory but that he was "cautious and inexperienced in this articular type
of action and, as a result, failed to act as promptly as he should have acted
in relation to the giving of notice. If that failure was caused, in part, by a
mistake, I think it was a born fide mistake, and, in any event, any failure on
his part was not attributable to any mere carelessness or inattention."
In delivering his reserved judgment his Honour referred to the fact that
the only then reported decision on an application under this section of the
Motor Vehicles (Third Party Insurance) Act appeared to be Whitgob v. The
'"Id. at 523, per Maxwell, J.
' I Id., per Herron, J .
la Id. at 525.
Unreported. Judgment delivered 7th July, 1954.
 EXTENSION OF TIME 293
Nominal Defendant14 and for that reason set out in detail some of the con-
siderations which he felt are applicable to such applications, namely:
1. The time for giving notice may be extended after the expiration of the
prescribed period of three months.
2. Each case must be decided on its own particular facts and it is not
desirable or proper to attempt to define what constitutes or does not
constitute "sufficient cause".
3. There is an onus on the applicant to establish sufficient cause for not
giving the notice within the prescribed period.
4. Sufficient cause must be found to have operated not only during the
three months period but also during the period after the three months
had expired but before notice was given.
5. The length of time before a notice is given is a circumstance to be
considered but no particular period of delay is conclusive.
6. A mistake of law can constitute sufficient cause but is not necessarily
a sufficient cause.
7. "Where delay has been due, in whole or in part, to the ignorance,
mistake, carelessness or other default of the applicant's solicitor or
some other legal adviser, this circumstance will not necessarily entitle
the applicant to succeed, nor will it necessarily preclude him from
succeeding. In this regard also, each case must be considered on its
own facts."
His Honour then went on to consider in some detail the principle relating
to default on the part of a legal adviser:
This last point is one which, I think, is worthy of some elaboration;
particularly as it was contended before me for the present appellant, that
an applicant could never be entitled to be excused, if his failure to give
the notice was due to the negligence of his solicitor, so that he would be
entitled to bring an action against the solicitor for that negligence and
so would not be left without any remedy if unable to proceed with an
action against the Nominal, Defendant. In Re Coles & Ravenshear (1907)
1 K.B.l, the Court of Appeal considered an application for special leave
to appeal to that court, such leave being sought because the time prescribed
for appeal had expired. The court held that where the failure to appeal in
time was due to a mistake made by counsel there was not sufficient ground
for granting special leave. All the members of the court took the view that
earlier a ~ t h o ~ i t i erequired
s them to hold that a mistake bv counsel or
solicitor or solicitor's clerk could not justify the granting of leave to appeal,
which could only be granted where special circumstances existed. Two
members of the court regretted that they were constrained by authority
to refuse the a ~ ~ l i c a t i o nand
A.
, stated that if thev had been free to exercise
their own judgment they would have granted the application. Several state-
ments are contained in the judgments as to the undesirability of a dis-
cretion vested in a court being fettered by any hard and fast rule as to
the circumstances in which the discretion ought to be exercised.
u

In my opinion, in dealing with an application under the Act now

being considered, there is no authority which requires a judge to hold
that a mistake made by a legal adviser cannot be considered as con-
stituting sufficient cause. As I have already said, it has been laid down in
many cases, including the case in the House of Lords quoted above1= that
such applications should be decided upon a consideration of the words of
the particular case, and the court should not be fettered by any rigid
rule as to what may or may not constitute sufficient cause. . . .
I think it is clear that the Full Court (in Delaney v. Flynn supra)
decided that sufficient cause could be shown where the default was that
l4 (1952) 69 W.N. (N.S.W.) 1.
l5 Shotts Iron Co. Ltd. v. Fozdyce (1930) A.C. 503.
294 SYDNEY LAW REVIEW
of a solicitor and not that of the applicant, and that a failure by a solicitor
to take the proper steps could itself be regarded as establishing sufficient
cause for an extension of time. But I do not think that the court decided
or intended to decide that in every case where the applicant was not
personally to blame, but the fault lay with his solicitor, that an extension
of time must necessarily and always be granted. The decision that the
failure of the solicitor amounted to sufficient cause should be regarded
as a decision upon the case before the court, and not as laying down an
invariable rule.
On the facts of the case as set out above, and in the light of these
principles, his Honour dismissed the appeal and affirmed the order of the
Prothonotary granting an extension of time.
The next case in point is Smith v. The Nominal Defendant,16 a decision
of McClemens, J. on reference from the Prothonotary. The applicant was in-
jured on 7th May, 1954 in a collision involving an uninsured motor vehicle,
so that it was necessary for proceedings to be taken against the Nominal
Defendant and for notice to be given to the Nominal Defendant within three
months.17 The applicant caused a solicitor to be instructed within one week and
personally confirmed these instructions some three weeks later. Neither the
applicant nor his solicitor were aware of the statutory provisions, but on
becoming aware of them in March 1955 the solicitor acted promptly in informing
the applicant, serving notice on the Nominal Defendant and applying to the
court for sufficient extension of time to validate the notice.
The Prothonotary dismissed the application, relying partly on the obser-
vations of Brereton, J. in Dunne v. The Nominal Defendant that "when a
solicitor is responsible (for the delay) grave and weighty reasons would have
to be shown before one could regard them as sufficient because he is a person
necessarily charged with the responsibility of attending to matters of that sort".18
McClemens, J., in the course of his judgment reversing the Prothonotary's
decision and extending the time for giving notice, made the following comments:
The solicitor who was consulted gave evidence before me. He was
completely frank and honest about the matter and gave me the impression
that, without my palliating in any way the seriousness of the omission,
it is the sort of mistake that any solicitor whose activities were purely
conveyancing might make, and as Abbott, C.J. said in Montriou v. Jeffreys:
'God forbid that it should be imagined that an attorney or a counsel or
even a judge is bound to know a l l the law'. After all, there are so many
Acts of Parliament operating in this State which provide for so many and
divergent limitations of action that it is hard to keep up with them. The
solicitor has frankly sworn that he was completely unaware of the pro-
visions of s.30 of the relevant Act. but the matter df real significance
" here
is the interest of the injured claimant, who sets things in train a week,
or at the most, a month after the accident and believed his claim was being
taken care of.le
His Honour then went on to express the opinion that the decision in Dunne v.
The Nominal Defendant, by which the Prothonotary appeared to have regarded
himself as bound, was either a decision on its own facts, in which case it is no
authority for any proposition of law at all, or if it did purport to lay down
principles of law, is inconsistent with the decision of the House of Lords in
Shotts Iron Co. Ltd. v. Fordyce20 and certain observations in Latter v. The
Council of the Shire of M~swellbrook,2~ where Latham, C.J. cited with approval
'' (1955) 72 W.N. (N.S.W.) 369.
"Motor Vehicles (Third Party Insurance) Act supra, s.30(1) (b) which is in similar
term; to s.30(2) ( b ) ( i i ) .
(1954) 71 W.N. (N.S.W.) 87, 89.
" (1955) 72 W.N. (N.S.W.) 369, 370.
" (1930) A.C. 503.
(1936) 56 C.L.R. 422.
 EXTENSION OF TIME 295
the following remarks of Low, J. in Hook v. Hook and Brown: "I do not
see how the law is to be administered so as to be acceptable to reasonable
persons unless allowance is made for the want of knowledge on the part of
persons in humble life."22
His Honour then disagrees with Brereton, J.'s reference to "grave and weighty
reasons" in the case of fault on the part of the solicitor on the ground that
those words do not appear in s.30, "sufficient cause" and that alone being the
test there laid down; and he feels the true rule to be applied is that stated by the
Prothonotary in Whitgob v. The Nominal Defendant:
Firstly, it is not enough for an applicant for an extension of the
prescribed period merely to prove that his failure was due to a mistake,
or to his ignorance of his rights. The court must judge whether under all
the circumstances of the case as they appear from the evidence before it
the mistake is one which furnishes sufficient ground, and likewise in the
case of ignorance, if so found. Secondly, the fact that the applicant was
ignorant of his rights does not in itself disqualify him and the court must
consider such ignorance, if established, in the light of all the circumstances
disclosed in the evidence. . . . I feel it necessary to state that the decision
in each case must depend on the particular facts therein. The words 'suffi-
cient cause' should not be rigidly defined as including case A and not case
B, but the determination should be left as a question of fact applying the
words of the statute in their ordinary c ~ n n o t a t i o n . ~ ~
This statement his Honour felt should be qualified by the decision in Shotts
Iron Co. v. FordyceZ4in that the determination of the existence of a sufficient
cause is a question of law on the facts found, and not a question of fact.
For these reasons his Honour considered that he should not follow the
decision in Dunne v. The Nominal Defendant, particularly in view of the decision
of the Full Court in Delaney v. F l ~ n n and , ~ ~in deciding that this was a proper
case in which to exercise his discretion to extend the time made the following
comments :
It would in my view be patently unjust that the injured person, who is
taken from the scene of the accident so injured that his arm has to be
amputated, should be deprived of the right to exercise his cause of action
by reason of the fault of his solicitor when he has acted with all possible
promptness, unless on the true construction of the statute, which is the
source of all his legal rights in this regard, he is excluded.26
In Onions v. Government Insurance Office of New South Wales27 the
question of a solicitor's error arose only incidentally to the principal question
and was not a .ground
, for the decision. The auestion at issue in the case was
the correctness of a decision of the Prothonotary granting an extension of time
under s.15(2) ( b ) (ii) of the Motor Vehicles (Third Party Insurance) Act for
the service of notice of claim on the authorised insurer, it not having been
possible to serve the person who was thought to be the owner of the vehicle.
The appeal against the Prothonotary's decision was allowed principally because
the applicant was able, at the time the judgment was delivered, to pursue his
remedies against the true owner of the vehicle. The error on the part of the
solicitor in this case was that he caused a search to be made against thk registered
owner of the motor vehicle at the wrong date, namely 3rd September, 1954
instead of 23 September, 1954, and in the intervening period the motor vehicle
in question had changed hands. In these circumstances Maguire, J. upheld the
respondent's submission that the onlv error of the solicitor was irrelevant
because its sole effect was to delay proceedings against the true owner of the
(1917) P.56, quoted (1936) 56 C.L.R. at 434-35.
" (1951) 69 W.N. (N.S.W.) 1, 2.
Sunra.
~ubra.
" (1955) 72 W.N. (N.S.W.) 369, 373-74.
" (1956) 73 W.N. (N.S.W.) 279.
296 SYDNEY LAW REVIEW
vehicle.
The following observations of his Honour in the course of his judgment
relate to the effect of a solicitor's error:
The Prothonotary, in acceding to the applicant's contention when the
summons was before him, was largely influenced by the view which he
formed that there had been a mistake on the part of the solicitor which led
to the delay between February 1955 and December 1955, and he was of
opinion that such mistake in the circumstances of the present case,
amounted to 'sufficient cause' within the meaning of the subsection he
was considering. It is clear from a number of decisions that mistake or
default on the part of a solicitor can in a particular case be regarded as
sufficient cause.28
The most recent essay in the construction of s.30(2) (b) (ii) of the Act
is that of the Full Court29 in Sophron v. The Nominal where the
ground of the application for extension of time was again "fault" on the part
of a solicitor. The applicant, a foreigner, who experienced some difficulty with
the English language, was injured in a collision with an unidentified motor
vehicle near Bega on 6th April, 1954. He remained in hospital in Bega for
several days and thereafter he proceeded to Sydney where, on 13th April, he
instructed a solicitor to issue a writ on his behalf. The solicitor advised him
as to the possibility of an action against the Nominal Defendant and the appli-
cant was to make inquiries at Bega on his way home, he residing in Victoria.
These inquiries proved fruitless and in May 1954 the applicant wrote to his
solicitor a letter which made no reference to the owner of the vehicle.
In April the applicant's solicitor, who knew of the relevant provisions
of the Act, gave the conduct of the matter to an articled clerk in his office
who was a final year law student and accustomed to prepare cases for trial,
but who had no experience of matters involving the Nominal Defendant. On
seeing the letter from the applicant in May, the clerk assumed that no infor-
mation was available as to the driver of the vehicle and directed his attention
to the Act without noticing the time limit imposed. Institution of proceedings
was delayed pending the receipt of details of out-of-pocket expenses and further
medical treatment which the applicant was to undergo. When this information
was available in October 1954 the clerk again directed his attention to s.30
of the Act and noticed the provisions as to the time limit for giving notice.
Notice was thereupon given on 21st October, 1954 and the Nominal Defendant
asked to consent to the notice being given out of time. On 5th November, 1954
the solicitor for the Nominal Defendant advised the applicant's solicitors that
there was no power to give this consent. On 31st October, 1955 application was
made to the Prothonotary for an extension of time. No explanation was offered
for the delay from November 1954 to October 1955.
The Prothonotary found that the whole fault lay at the door of the appli-
cant's solicitor, presumably including thereby his articled clerk, and feeling
himself bound so to hold by the decision of the Full Court in Delaney v. Flynn
stated that he proposed in all cases where it was shown that any default in
giving the requisite notice was the fault of the legal adviser of the applicant to
hold that sufficient cause for extension of time had been shown. Accordingly
he granted the extension of time asked by the applicant. From this decision the
Nominal Defendant appealed to a judge in chambers, by whom the matter was
referred to the Full Court, which, by a majority of two to one, upheld the
appeal and discharged the Prothonotary's order with costs against the applicant.
The majority judgment of the court dealt first with the question whether
the applicant was required to establish sufficient cause only within the statutory
Id. at 282.
Owen, Herron and Manning, JJ.
IS

As yet unreported. Judgment delivered 24th October, 1956. Special leave to appeal
m
from this decision to the High Court has been granted.
 EXTENSION OF TIME 297
three month period or whether sufficient cause is required to be shown to exist
at the date of the application, it being held that on the authorities and the
correct interpretation of the section sufficient cause must be shown at the time
of the application. The judgment then goes on to deal with the question of
fault on the part of the solicitor in the following terms:
We are of opinion that different considerations apply to those which
induced the Prothonotary to find as he did. He felt bound to conclude that
if the fault was that of the solicitor who had been consulted by the
proposed plaintiff, then sufficient cause had necessarily been made out.
Whilst we sympathise with him in his unenviable task of attempting to
reconcile the conflicting decisions, we are of opinion that there is no such
rule.
In our view the approach to such problems as that now under con-
sideration is as stated by Lord Sankey in Shotts Iron Co. v. Fordyce (1930)
A.C. 503 at 508, as follows!
'Once again I would like to protest against the great number of cases
which are so often cited upon this Act. I prefer to go back if possible
to the words of the statute, and not to consider such words through a vista
of decisions, most of which deal with the facts of the particular case under
consideration. 1entirely agree with what was said by the Lord Justice Clerk
in this case: "one would have thought that the question of whether reason-
able cause existed for abstaining from making a claim, under any set of
circumstances, presented prima facie a simple problem for solution. That,
however, is not so. The problem is, if I may say so, rather obscured than
illuminated by the mass of case law by which it is surrounded, if not
submerged." '
In our view one should go back to the words of the statute, which
require the claimant to show that 'sufficient' cause exists for making an
order. The problem is not assisted by substituting some other adjective
such as 'substantial' for 'sufficient' (cf. Whitgob v. Nominal Defendant 69
W.N.l). In determining the sufficiency of the cause shown, regard must
be had to all the circumstances.
I t is not desirable or proper to attempt to lay down any rigid definition
as to what does or does not constitute sufficient cause (Martin v. Nominal
Defendant, per Walsh, J. (unreported)). But some of the matters which
may be material for consideration are the reason for failure to give notice
within the prescribed period, the reason for further delay and the events
which transpired after the expiration of such period, the extent to which
the applicant personally was blameworthy, the respective position of the
parties and the probability of prejudice to each of them.
We agree with the statement of Brereton, J. in Dunne v. Nominal
Defendant ( 7 1 W.N. 87) as follows: 'By and large a short delay can be
sufficiently excused more readily and for less weighty reasons than a long
delay .'
As was pointed out by Jordan, C.J. in Blandford v. Fox (45 S.R. 242
at 245), the statutory provision which enables an action to be brought
against the nominal defendant where a claimant alleges that ar, offending
vehicle cannot be identified, while most beneficial, is open to abuse.
The fact that failure to give notice has been due to the neglect or
default of a solicitor retained by the claimant to prosecute his claim is a
factor to be considered and the weight to be given to such a circumstance
must vary in each case. But we think it is quite clear that this circumstance
will not necessarily entitle the applicant to succeed any more than it will
necessarily preclude him from succeeding.
The Prothonotary regarded the decision of this court in Delaney v.
Flynn (55 S.R.520) as laying down an invariablg rule. But we do not
think that case is authority for anything more than that, having regard to
1 298 SYDNEY LAW REVIEW
1 the terms of section 63(3) of the Workers' Compensation Act, and having
regard to the facts proved, the failure of the solicitor to give notice war-
ranted an extension of time in that case.
Because in our view the Prothonotary was in error in his approach
to the matter, it becomes necessary for us to determine the way in which
the rules above stated should be applied to the facts of the case. The matter
is far from easy. There are some circumstances which are not satisfactorily
explained. For example, while the solicitor's clerk was ignorant of the
terms of the section, the solicitor does not say that he was unaware of the
necessity to give notice. Further, no explanation has been given for the
delay of twelve months in making the applica~ionafter notice was given.
Whilst we have no doubt that the solicitor and his clerk have been quite
truthful, and we appreciate that the applicant himself was under a handicap,
we do not think that the cause shown is sufficient to justify a delay of as
long again as the prescribed period.
In delivering the dissenting judgment, Herron, J. dealt firstly with the
facts of the case and then with the principles to be applied in applications for
extension of time. He then considered the effect of a solicitor's default in the
following terms:
I turn to the question of 'sufficient cause' where the delay in giving the
notice within the statutory time was due to the ignorance, mistake, care-
lessness or other default of the applicant's solicitor. As already indicated
this circumstance will not necessarily entitle the applicant to succeed nor
will it necessarily preclude him from succeeding. Each case must be con-
sidered on its own facts. In three cases in our own courts it has been
decided that sufficient cause was shown where the cause was the default of
the applicant's legal adviser. There is no authority which requires a judge
to hold that a mistake made by a legal adviser cannot be held to constitute
sufficient cause.
His Honour then went on to deal with the decisions in Dunne v. The Nominal
Defendant, Delaney v. Flynn, Martin v. The Nominal Defendant and Smith v.
The Nominal Defendant, and continued:
In England the default of a solicitor or of counsel was thought at
one time to be fatal to an application to extend time, e.g. for filing notice
of appeal. In Re Coles and Ravenshear ((1907) 1 K.B.l) the Court of
Appeal considered an application for special leave to appeal as the time
prescribed by the rules for appealing had expired. In that case, counsel
had misconstrued the rule and, as a result of the advice given, the appeal
was out of time. It was there held that the fact that the delay was due
to the mistake of the legal adviser did not constitute a ground for granting
the special leave which the rule required. At that time there was a current
of authority which the courts felt compelled them to refuse leave in such
cases. In 1908 this view was somewhat relaxed in Baker v. Faber, ((1908) -
W.N.9)' but again, in 1924, a fetter on the court's discretion, where the
delay was due to the slip of a legal adviser, was reimposed and In Re
Coles and Ravenshear was applied, despite an alteration to the relevant
rule in 1909.
Finally in Gatti v. Shoosmith ((1939) 1 Ch. 828) the earlier decisions
mentioned were not followed and the Court of Appeal held that the default
of a managing clerk of the appellant's solicitors may be sufficient cause to
justify an extension of time, but that the discretion would not necessarily
be exercised in every set of facts. The following passage from the judgment
of the Master of the Rolls, Sir Wilfred Greene fully states the position:
'On consideration of the whole matter, in my opinion, under the rule
as it now stands, the fact that the omission to appeal in due time was due
to a mistake on the part of a legal adviser, may be a sufficient cause to
justify the court'in exercising its discretion. I say "may be" because it is
 EXTENSION OF TIME 299
not to be thought that it will necessarily be exercised in every set of facts.
Under the law as it was conceived to be before the amendment, such a
mistake was considered to be in no circumstances a sufficient ground.
What I venture to think the proper rule which this court must follow is:
that there is nothing in th? nature of such a mistake to exclude it from
being a proper gound for allowing the appeal to be effective though out
of time, and whether the matter shall be so treated must depend upon the
facts of each individual case. There may be facts in a case which would
make it unjust to allow the appellant to succeed upon that argument.'
I apply these considerations to the present appeal.
I agree with the Prothonotary that sufficient cause has here been
shown. The application is entirely born fide and the respondent, his solicitor
and the articled clerk have placed the facts honestly before the court. In
the forefront of consideration is the fact that the respondent at all times
lived in another State and prior to the hearing of this application had only
been in Sydney on one occasion, in April 1954, when he instructed his
solicitor to take proceedings. He was, as I have pointed out, not Australian
born and had had no previous association with a claim for personal in-
juries. He placed the matter i~ the hands of his solicitor promptly and
he was entitled to believe that his claim would be instituted according to
law. So far as the solicitor was concerned, it is not unreasonable for him
to entrust the conduct of the matter to a senior articled clerk, and whilst
it is difficult to understand how the latter came to overlook the provision
of s.30 as to notice, I have po reason to doubt the truth of his affidavit.
Between April and October the delay in taking further steps has been
explained and the notice was given upon the terms of s.30 being brought
to the clerk's attention. The notice itself was full and sufficient, but the
fact remains that it was three months out of time.
That fact that the summons was not issued until the end of October
1955 was relied upon strongly by counsel for the appellant. While this is
a circumstance to be considered, I do not think that in this case it requires
a different result. It is not a case where no notice at all has been given,
and I do not think that the delay in bringing the matter before the court,
unexplained though it is, should outweigh other considerations, for I do
not think that the Nominal Defendant or his solicitors were entitled to
await the decision of the court before acting on the notice of the 21st
October. Such inquiries as were open could and should have been made
promptly on receipt of the notice.
A consideration of these decisions raises the problem of the principle or
principles which can be extracted from the judgments and which ought to be
applied to like applications in the future: and while it can certainly be said
that reconciliation of the decisions and the determination of the rule or rules
to be applied presents no easy task, yet it is submitted that there are at least
some principles which can be said to be definitely established, and the failure
to apply which would constitute a ground for reconsidering the decision in
suestion. These are:
1. The relevant facts are the facts concerning the failure to give notice
within the prescribed period and such delay as may thereafter occur
before notice is given. The facts surrounding the period between the
giving of notice and the application to the court for leave to give notice
out of time may also be relevant.
2. The relevant facts are to be found by the Prothonotary, or where there
is a reference to a judge in chambers, which is in the nature of a
rehearing, by the judge.
3. It is a question of law whether on the facts shown there is sufficient
cause for granting an extension of time.
4. The default (and in "default" is included omission, oversight, error,
300 SYDNEY LAW REVIEW
ignorance or neglect) of the applicant's solicitor is a fact to be con-
sidered on the application and may constitute sufficient cause for grant-
ing an extension of time.
5. The default of the applicant's solicitor does not of itself necessarily
constitute sufficient cause.
6. The facts which are alleged to constitute sufficient cause should be
weighed in the light of considerations personal to the person responsible
for the delay.
7. Each application must be decided on its own particular facts.
8. In deciding whether or not in any case sufficient cause exists for the
granting of an extension of time, there are certain factors which should
be taken into consideration. These factors include:
(a) the length of the delay;
(b) the reason for failure to give notice within the prescribed period;
(c) the reason for further delay, if any;
(d) the events which transpired after the expiration of the prescribed
period ;
(e) the extent to which the applicant personally was blameworthy;
(f) the respective position of the parties;
(g) the probability of prejudice to each of them;
(h) the purpose of the limitation on giving of notice imposed by the
Act.
It may perhaps be suggested that the principles and factors referred to
above are in conflict with the principle laid down by all the cases in point,
namely that each case should be decided on its own particular facts and the
discretion of the court in each case should be unfettered. But to refer to a set
of factors or principles to be taken into account in arriving at a decision is a
different matter from laying down an inflexible rule to force the court to a
particular conclusion in a given set of facts; and it is submitted that the
factors set out in paragraph 8 above fall into the former rather than the latter
category. Certainly the principles in paragraphs 1 to 7 are inflexible in their
operation; but again they in no way constrain the court to arrive at any par-
ticular decision in any particular set of facts-they merely indicate the method
by which the court should exercise its discretion. It is inevitable that in every
field in which there is a discretion to be exercised there should be laid down some
principles to guide the court in the exercise of its discretion, for even to say that
the court shall have a completely free discretion in a certain field is to lay down
such a principle, quite apart from the question of defining the field within which
the discretion is to be exercised.
The major problem which appears to be raised for consideration by these
decisions relating to the extension of time is that of what the court will do in
future applications where the sole cause of the failure to give notice has been
the default of a solicitor, and this problem also raises the incidental question
of what course should be taken, both by the solicitor and by the applicant, in
such a case.
It is submitted that in attempting to resolve the ~roblem,three factors
should be considered. The first is the intention of the legislature in introducing
into the Act the section under which the application is made; the second is the
body of decided cases on the section, which has already been dealt with above;
and the third is the interests involved in the situation giving rise to the
application.
As to the first of these matters, there can be no dispute that while the
legislature undoubtedly intended to protect the interests of the Nominal Defen-
dant in imposing a time limit for the making of claims against the fund
administered by him, nevertheless the purpose of including a discretion in the
court to extend the time must have been to protect the interests of an applicant
 EXTENSION OF TIME 301
who for "sufficient cause" has not made a claim against the Nominal Defendant
within the time limited by the Act.
Perhaps the best analysis of the purpose of the section under consideration
and one that has been approved in subsequent decisions is that of Brereton, J.
in Dunne v. The Nominal Defendant.
The object of the section in my view is, firstly, to guard against sham
claims being made relating to some date in the remote past, claims which
could never be adequately investigated by a person in such circumstances
as the nominal defendant; and, secondly, perhaps to guard against claims
being made against a nominal defendant which could and should be made
against the actual driver of the motor vehicle concerned. A third object,
no doubt is to enable the nominal defendant who, unlike an ordinary
defendant, knows nothing of the accident to investigate fully before, as
has been said, "the scent is cold". But it is to be noticed that the section
imposes no absolute bar upon the giving of notice "out of time". It is
all very well to say that the section is there for a definite purpose and three
months' limitation is imposed for a definite reason. It is equally true to
say that the liberty to extend time is there for a definite purpose.
. .
. . .S1
Apart from the effect of decided cases and the intention of the legislature,
the other factors which it is submitted should be considered by the court in
reaching a decision in any particular case are the interests involved in such a
decision, the most significant of which and those which are inevitably involved
in every application for extension of time are the following:
1. The general interest of the community, the Nominal Defendant and the
authorised insurers who contribute to the fund out of which claims against the
Nominal Defendant are met in preventing the making of fraudulent claims and
in allowing the Nominal Defendant, who has not been personally involved in
the accident out of which the claim arises, an opportunity of investigating each
claim while there is still some chance of locating the vehicle which actually
caused the injury. A closely related interest is the special interest of the Nominal
Defendant and the authorised insurers who contribute to the fund in having a
claim made out of time rejected so that the risk of an award being made against
the fund is eliminated. And these interests cannot be lightly dismissed for in
many cases where claims have been made on the Nominal Defendant out of
time the investigations carried out by him have resulted in the location of the
offending vehicle. Thus it cannot be said in any application for extension of
time that to grant the extension would not be to prejudice the Nominal Defen-
dant; for who is to say in any particular case that it would not have been
possible to trace the offending vehicle if inquiries had been promptly instituted.
This interest is clearly involved in the argument that a solicitor employed
by an applicant is the agent of the applicant and the applicant is bound by the
default of his solicitor. The solicitor is expected to know the law and to be able
to advise the applicant and protect his interests. I t is no fault of the Nominal
Defendant that default has been made by the solicitor and therefore there is no
reason why the Nominal Defendant should be prejudiced by reason of the
fault of the applicant's agent and legal adviser.
But while the interest of the Nominal Defendant would require the appli-
cant to fail in every case, nevertheless it is quite clear, both from the words
of the section and from the decisions referred to above, that in some cases at
least such interest is to be subordinated to the interest of the applicant and/or
his solicitor, and that such subordination may take place where the applicant's
solicitor is solely at fault.
2. The second interest involved in such an application is the interest of
the applicant himself in being allowed to claim against the Nominal Defendant
in respect of his injuries. This interest is typified in the argument which fmds
(1954) 71 W. N. (N.S.W.) 87, 88.
 SYDNEY LAW REVIEW
expression in the following passage from the judgment of McClemens, J. in
Smith v. The N o m i d Defendant:
It would in my view be patently unjust that the injured person . . .
should be deprived of the right to exercise his right by reason of the fault
of his solicitor when he has acted with all reasonable promptness. . . .32
Perhaps, however, it may be suggested that the interest of the applicant
in recovering damages for his injuries does not necessarily require the granting
of an extension of time in every case--that if the applicant has in fact acted
promptly and reasonably then he will have an action for negligence33 against
his solicitor for the latter's default in giving notice and therefore would not be
debarred from relief if leave to claim against the Nominal Defendant were
refused. However, it is submitted that an action for negligence would not
automatically lie against the solicitor for failure to give notice, and so it might
well be that an applicant who had been refused an extension of time against
the Nominal Defendant might also fail in an action for negligence against his
solicitor.
The judicial officer who refuses the extension of time may well consider
that the applicant has a good cause of action against his solicitor, but that
judicial officer is not the tribunal which adjudicates in such action. When to
this difficulty is added the uncertainty of an action for professional negligence,
and the unpredictability of verdicts under the jury system at present applying
in New South Wales, the result will almost inevitably be that the interests of
the faultless applicant are not always protected. There may be cases when an
applicant would fail to have the time extended and would subsequently fail in
an action against his solicitor, just as there may be cases in which an extension
is granted although the applicant would have succeeded in an action against the
solicitor.
What is suggested is that the interests of the applicant require that in all
cases he should either be entitled to an extension or he should have an action
against the solicitor. The interests of the Nominal Defendant and the solicitor
would, however, demand that he should not be entitled to both remedies in any
individual case.
A subsidiary interest of the applicant arises in connection with the question
of costs. Where an application for extension of time is granted, it is usual for
the applicant to be ordered to pay the respondent's costs, and where the appli-
cation fails costs are almost invariably awarded against the applicant. Three
principal questions appear to arise:
(a) Should the costs awarded to the respondent be paid by the applicant
or by the defaulting solicitor?
(b) If the application is successful, is the defaulting solicitor entitled to
recover from the applicant his own costs and/or his disbursements?
(c) If the application fails, is the defaulting solicitor entitled to recover
from his client his own costs and/or his disbursements associated with the
application and, in addition, is he entitled to the costs and/or disbursements of
the investigation of the facts surrounding the accident and of compliance or
part compliance with the requirement of due inquiry and search?
There does not appear to be any decided authority on any of these questions,
but it is submitted that the interests of the faultless applicant clearly require the
costs in each case to be met by the solicitor.
3. The third principal interest involved in such applications is the interest
of the solicitor in having the application for extension of time granted, which
arises from the possibility of his being sued for negligence by the applicant,
..
should the a~ulicationbe refused: and closelv allied to this interest is the
pecuniary interest in having the costs referred to above paid by the applicant.
95(1955) 72 W.N. 369, 373-74.
= A n action against a solicitor for negligence is normally framed in contract (Groom
v. Crocker (1939) 1 K.B. 194).
 EXTENSION OF TIME 303
At first sight it might perhaps appear that in a set of circumstances such
as the present, where only one or at the most two of a trio of conflicting interests
can be satisfied, the interest which should suffer is that of the person who is
most in default; and in the present situation there can be no doubt that the
person most in default is the solicitor. But it is clear from the decisions on the
question that the test which is in fact applied is not the "greatest default" test,
but the test of whether the reason for the oversight or error amounts to an
indefinite quantity described as "sufficient cause".
It is the indefiniteness of this test which makes this field of law so uncertain
and makes the position of the defaulting solicitor such an unenviable one.
.
For, just as the applicant must decide whether he will retain the defaulting
solicitor to act on his behalf in an application for extension of time or obtain
the advice of another solicitor, so the defaulting solicitor whose instructions
have not been withdrawn must decide whether he should apply to the court
for an extension of time, perhaps jeopardising his professional reputation and
running the risk of comment and an action for negligence, or whether he should
attempt to reach some compromise with the applicant whereby the matter is
finalised by the payment of some sum by the solicitor to the applicant. And the
dilemma as thus posed takes no account of the questions of costs that have
been raised above, and which in even the simplest of cases would involve a
not inconsiderable sum.
What this consideration of the interests involved seems to suggest is that,
at least in this branch of the law where the interests of professional men are
so vitally concerned, there may be much to be said lor the proposition that there
should be certainty in the law rather than a discretion in the court to dispense
what appear to be the requirements of justice and equity in each particular case.
Perhaps the number of cases in which the difficulties outlined above arise
could be reduced were the New South Wales legislature to pass an Act which
sets out in one place the time limits applicable to all causes of action against
all persons. Such Acts are in force both in England and in V i ~ t o r i a ,and ~ ~ if
there was set out in such an Act the names of all bodies to which a special
time limit is applicable in respect of the commencement of an action, then the
number of applications based on a solicitor's ignorance of the relevant statutory
provisions should be drastically reduced. But still the problems would inevitably
arise from time to time, even if in a more modified form, and at less frequent
intervals.
If then certainty is to be introduced into this branch of the law in lieu
of the present rules which might perhaps be felt not to give sufficient protection
to the interests of the professional persons involved, it can only be by the intro-
duction, either by the courts or by legislature, of the principle that in all cases
default on the part of a solicitor either will or will not be a sufficient cause for
granting an extension of time. Of the two possible suggested principles, that of
granting an extension wherever the reason for not giving notice within time
is the fault of the solicitor seems to be precluded both by the judgments already
given on the section and by the fear expressed in certain of the judgments that
the effect of imposing a time limit for the giving of notice would be rendered
virtually nugatory if the applicant's solicitor could come to the court and say:
"This extension must be granted since the cause of the delay in giving notice
has been occasioned by my default." The other possible principle, that of exclud-
ing a solicitor's neglect as a ground for granting an extension of time, is equally
in conflict with the authorities, but would not be open to the second objection
to the first suggested principle. It is realised, of course, that if the principle of
"'In England by the Limitation Act, 1939 (Eng.), 2 & 3 Geo. 6, c.21, as amended by the
Law Reform (Limitation of Actions) 4ct, 1954 (Eng.), 2 & 3 Eliz., c.36, which Act is
based on the Report of the Committee on the Limitation of Actions (Cmd. 7740). In
Victoria by the Limitation of Actions Act 1955 (Vic.).
304 SYDNEY LAW REVIEW
excluding solicitor's neglect as a ground for granting an extension is adopted,
the interests of applicants in a number of Gases must be adversely affected, but
if certainty is to be achieved in this field, it is inevitable that the interests of
some persons should suffer. Solicitors are retained and paid by clients for their
3pecialised knowledge of the law and are expected to be conversant with the
relevant applicable principles. The applicant is free to select his own solicitor,
and in the event of his default the applicant is not necessarily left without remedy.
For these reasons it is submitted that if the difficulties manifest in this branch
of legal principle are to be resolved by the introduction of certainty into the
law, then the correct principle would be to exclude solicitor's neglect as a ground
for extension of time rather than to make it inevitably such a ground.

S. G. HUME, Case Editor-Fourth Year Student.