Which statement about the hearsay rule in interlocutory applications is true?

The statement that the hearsay rule does not apply as long as the source is identified is true in the context of interlocutory applications in New South Wales civil procedure. In interlocutory hearings, which are preliminary proceedings before the main trial, the rules regarding the admissibility of evidence can be more flexible. This flexibility allows for hearsay evidence to be presented when the source of that information is disclosed, thus providing context and a basis for its consideration.

In these situations, the court may decide that the probative value of the hearsay evidence and the circumstances under which it was obtained justify its admission for the purposes of the interlocutory application. It is important to note, however, that while hearsay evidence can be introduced under this principle, it may not carry the same weight or reliability as direct evidence, and parties must still argue the relevance and sufficiency of that hearsay.

Understanding this aspect of the hearsay rule is crucial, as it allows parties to present a wider scope of evidence in preliminary stages, potentially influencing interim decisions made by the court before the main trial commences.