Aussie Red Equipment Pty Ltd v Antsent Pty Ltd

Link copied
Case Copied 17 min read

FEDERAL COURT OF AUSTRALIA

Aussie Red Equipment Pty Ltd v Antsent Pty Ltd [2001] FCA 1641

COSTS – power to order costs under s 43 of the Federal Court of Australia Act 1976 (Cth) – whether respondents should be ordered to pay the applicants’ costs – where proceedings resolved by consent save for the issue of costs – where consent orders not expressed to be ‘without any admissions to liability’ – where final consent orders closely reflected relief initially sort by the applicants – where respondents failed to follow directions.

Australian Securities Commission v Aust-Home Investments Limited (1993) 44 FCR 194

referred to

Re the Minister for Immigration and Ethnic Affairs of the Commonwealth of Australia;

Ex parte Lai Qin (1997) 186 CLR 622 referred to

ONE.TEL Ltd v Deputy Commissioner of Taxation [2000] FCA 270 referred to

AUSSIE RED EQUIPMENT PTY LTD (ACN 003 224 020) AND AQUA FORTIS AUSTRALIA PTY LTD (ACN 080 526 601) v ANTSENT PTY LTD (ACN 003 751 344) AND STEVEN DARYL POWER

N 1366 of 2000

MOORE J
22 NOVEMBER 2001
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 1366 OF 2000

BETWEEN:

AUSSIE RED EQUIPMENT PTY LTD (ACN 003 224 020)
FIRST APPLICANT

AQUA FORTIS AUSTRALIA PTY LTD (ACN 080 526 601)
SECOND APPLICANT

AND:

ANTSENT PTY LTD (ACN 003 751 344)
FIRST RESPONDENT

STEVEN DARYL POWER
SECOND RESPONDENT

JUDGE:

MOORE J

DATE OF ORDER:

22 NOVEMBER 2001

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.The first and second respondent pay the applicants’ costs in the sum of $10,000.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 1366 OF 2000

BETWEEN:

AUSSIE RED EQUIPMENT PTY LTD (ACN 003 224 020)
FIRST APPLICANT

AQUA FORTIS AUSTRALIA PTY LTD (ACN 080 526 601)
SECOND APPLICANT

AND:

ANTSENT PTY LTD (ACN 003 751 344)
FIRST RESPONDENT

STEVEN DARYL POWER
SECOND RESPONDENT

JUDGE:

MOORE J

DATE:

22 NOVEMBER 2001

PLACE:

SYDNEY

REASONS FOR JUDGMENT

Introduction

  1. On 20 December 2000 the applicants commenced proceedings in this Court against Antsent Pty Ltd (“the first respondent”) and the director of the first respondent responsible for its day to day activities, Mr Steven Power (“the second respondent”). The statement of claim alleged that the respondents had breached the Trade Practices Act 1974 (Cth) (“TP Act”), engaged in passing off and infringed the applicants’ registered trade mark. Without the matter proceeding to hearing, the parties reached agreement on the substantive issues raised in the application and on 20 June 2001 consent orders were entered which effectively disposed of the matter. However, the issue of costs as between the applicants and the respondents remains unresolved.

    History of the proceedings

  2. The following appears not to be in issue.  The applicants specialise in providing and marketing cleaning services, in particular a high pressure water cleaning system designed for hard surfaces which is registered under the “AQUA…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Aussie Red Equipment Pty Ltd v Antsent Pty Ltd and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2001] FCA 1641
Decision Date

CaseChat Overview and Summary

In the matter of Aussie Red Equipment Pty Ltd v Antsent Pty Ltd, the dispute centred around the resolution of costs following a settlement agreement reached between the parties. The applicants, Aussie Red Equipment Pty Ltd, sought costs from the respondents, Antsent Pty Ltd, after the parties had agreed to certain terms without explicitly addressing the issue of costs. The Federal Court was tasked with determining the appropriate costs to be awarded. The court considered the reasonableness of the parties' conduct and the circumstances under which the substantive issues were resolved. It was noted that while the applicants had reached an agreement with the respondents, they had not established their claims in contested proceedings. The court balanced the apparent success of the applicants against the fact that the claims were not contested, ultimately awarding costs of $10,000 to the applicants. This decision recognises the applicants' success while also taking into account the unique circumstances of the settlement.

Orders

Orders of the court

1. The first and second respondent pay the applicants’ costs in the sum of $10,000.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

MOORE J
A survey of cases where these broad principles have been applied reveals that, although the particular facts and circumstances of each case are of paramount importance, frequently the determining factor is the reasonableness of the parties’ conduct, (see for example Gribbles Pathology Pty Ltd v Health InsuranceCommission (1997) 80 FCR 284, Reddy v Hughes (1996) 37 IPR 413 and Emerald Properties Pty Ltd v Chan Unreported, Heerey J, 15 December 1993). Another important consideration will often be the circumstances under which the substantive issues in the proceedings were resolved. In ONE.TEL Ltd v Deputy Commissioner of Taxation [2000] FCA 270, Burchett J made the following observations:“In my opinion, it is important to draw a distinction between cases in which one party, after litigating for some time, effectively surrenders to the other, and cases where some supervening event or settlement so removes or modifies the subject of the dispute that, although it could not be said that one side has simply won, no issue remains between the parties except that of costs. In the former type of case, there will commonly be lacking any basis for an exercise of the Court’s discretion otherwise than by an award of costs to the successful party. It is the latter type of case which more often creates problems, since there may be difficulty in discerning a clear reason why one party, rather than the other, should bear the costs.”Conclusions The difficulty I confront in dealing with this issue of costs, is that the respondents agreed to the relief sought by the applicants without, as part of that agreement, addressing the question of costs. It is not uncommon for a party to negotiate a settlement of this character but, in so doing, reach agreement about costs. Such an agreement to settle the matter might also be expressed to be without any admission of liability, though that is not the case in this matter. In my opinion some recognition needs to be given to the apparent success of the applicants in the proceedings, though some allowance paid for the fact that the applicants have not established their claims in contested proceedings. The solicitor for the applicants has given evidence that his clients’ costs would be, on a party/party basis, approximately $24,000. That assessment was not challenged by way of cross-examination, though the evidence addressed the question of costs at a fairly general level. There is also evidence which indicates that on 1 May 2001 the applicants were prepared to discontinue the proceedings with each party bearing their own costs if the respondents agreed, effectively, to relinquish any rights to continue to use the marks and stop related business activity using the contentious names. Also on 29 June 2001 the applicants were prepared to compromise the costs on the basis that the respondents paid within twenty-eight days $16,000 and an order requiring that payment was made by the Court. That latter offer was rejected by the solicitors then acting for the respondents on the footing that the costs said to have been actually incurred, namely $31,923.18, were viewed as “astound(ing)”. As noted earlier, the second respondent gave evidence that he agreed to settle the matter on the terms he did for commercial reasons and not because he believed he had a legal obligation to do so. He also gave evidence that shortly after the proceedings commenced he informed the principal of the applicants and their solicitors that he would consent to certain of their claims but would not concede that he should not continue to use the name “Aqua Fortis Clean and Capture System Brisbane.”

Ratio Decidendi

Legal Principle Established

Established by: MOORE J

Full text does not contain this section.