Arlone Pty Ltd v Teller Properties Pty Ltd

In Arlone Pty Ltd v Teller Properties Pty Ltd, the applicants sought an order for costs against the respondents in relation to a complex litigation involving multiple parties and cross-claims. The case was heard in the New South Wales District Registry of the General Division of the Supreme Court of New South Wales. The applicants, Arlone Pty Ltd, James Walsh, and Robert Norman Bradbery, sought to have two-thirds of the costs of the cross-claim against Teller Properties Pty Limited and Hawcroft Holdings Pty Limited borne by Teller Properties Pty Limited. The respondents, Teller Properties Pty Limited, Hawcroft Holdings Pty Limited, Tibor Balog, and Edward Hawcroft, contested the costs allocation.

The legal issues before the court were primarily concerned with the allocation of costs for the cross-claim and other related costs in the proceedings. The applicants argued that since Teller Properties Pty Limited was in court for the cross-claim, it should bear two-thirds of the costs. The respondents, on the other hand, argued that the costs should be borne by the other parties since Teller Properties Pty Limited was not directly involved in the majority of the litigation days. Additionally, the applicants sought to deposit a portion of the judgment sum into court pending the completion of taxation of costs, to ensure that costs would be covered.

The court found that the costs for the cross-claim should indeed be borne by Teller Properties Pty Limited, as the cross-claim was initiated by them and they were present in court for its duration. However, the court determined that there should be no order for costs in relation to the other aspects of the litigation. Regarding the deposit of the judgment sum into court, the court considered it reasonable that a portion of the judgment sum should be paid into court by the applicants to cover potential costs. The court determined that $20,000 should be paid by Arlone Pty Ltd and $15,000 by Hawcroft Holdings Pty Limited, taking into account the differing involvement of the parties in the litigation.

In summary, the court ordered that Teller Properties Pty Limited bear two-thirds of the costs of the cross-claim, with no further order for costs in relation to the other litigation. Additionally, Arlone Pty Ltd and Hawcroft Holdings Pty Limited were ordered to pay $20,000 and $15,000 respectively into court pending the completion of taxation of costs.