ACN 116 746 859 (formerly Palermo Seafoods Pty Ltd) v Lunapas Pty Ltd

The appeal concerned a dispute between ACN 116 746 859 (formerly Palermo Seafoods Pty Ltd) and Lunapas Pty Ltd. The primary dispute involved claims for damages arising from alleged conversion. The appeal was heard in the Court of Appeal of New South Wales.

The legal issues before the Court of Appeal included whether the trial judge erred in rejecting certain heads of damage claimed by the plaintiff. Additionally, the court considered the scope of directions that could be made on a remitter for a rehearing, specifically whether a judge on rehearing could award costs of an earlier hearing. The court also had to determine whether the respondents, despite being successful, should have their costs reduced due to dereliction in complying with interlocutory directions, and whether valuation evidence should have been rejected if the expert witness was not called.

The Court of Appeal varied the order regarding costs of the proceedings in the Equity Division, ordering the defendants to pay two-thirds of the plaintiff’s costs. The court otherwise dismissed the appeal from the judgment and orders of Slattery J. The appellant was ordered to pay the respondents’ costs of the appeal.