Beling v Sixty International S.A. (No 2)

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FEDERAL COURT OF AUSTRALIA

Beling v Sixty International S.A. (No 2) [2015] FCA 355

Citation: Beling v Sixty International S.A. (No 2) [2015] FCA 355
Parties: JOEL BELING v SIXTY INTERNATIONAL S.A.
File number: VID 626 of 2014
Judge: MORTIMER J
Date of judgment: 17 April 2015
Catchwords: COSTS – applicant’s Calderbank offer unreasonably rejected by respondent – where offeror seeking indemnity costs is a solicitor litigant – indemnity costs not available to solicitor litigant in the absence of any contractual liability to pay professional costs – lump sum costs awarded having regard to scale of costs
Legislation: Federal Court of Australia Act 1976 (Cth) ss 37M, 43
Federal Court Rules2011 (Cth) r 40.30, Sch 3
Federal Court Rules 1979 (Cth) O 62 r 19
Cases cited: Auspine Ltd v Australian Newsprint Mills Ltd (1999) 93 FCR 1; [1999] FCA 673
Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119
Beling v Sixty International S.A. [2015] FCA 250
Black v Lipovac (1998) 217 ALR 386; [1998] FCA 699
Buckland v Watts [1970] 1 QB 27
Cachia v Hanes (1999) 179 CLR 403
Calderbank v Calderbank [1975] 3 All ER 333
Charlick Trading Pty Ltd v Australian National Railways Commission [2001] FCA 629
Donohoe v Britz (No 2) (1904) 1 CLR 662
Hazeldene’s Chicken Farm Pty Ltd v Victorian Workcover Authority (No 2) (2005) 13 VR 435; [2005] VSCA 298
Kiefel v State ofVictoria [2014] FCA 411
Leary v Leary [1987] 1 All ER 261
London Scottish Benefit Society v Chorley (1884) 13 QBD 872
MGICA (1992) Pty Ltd v Kenny & Good Pty Ltd (No 2) (1996) 70 FCR 236
Shaw v Yarranova [2011] VSCA 55
Stanley v Phillips (1966) 115 CLR 470
Stobbart v Mocnaj [1999] WASC 252
Date of hearing: Heard on the papers
Date of last submissions: 9 April 2015
Place: Melbourne
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 67
Counsel for the Applicant: The Applicant appeared in person
Counsel for the Respondent: Dr L Duncan
Solicitor for the Respondent: M+K Lawyers

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 626 of 2014

BETWEEN:

JOEL BELING
Applicant

AND:

SIXTY INTERNATIONAL S.A.
Respondent

JUDGE:

MORTIMER J

DATE OF ORDER:

17 APRIL 2015

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The costs ordered to be paid by the respondent to the applicant, pursuant to the decision of this Court dated 20 March 2015, be a lump sum in the amount of $11,537.

2.The costs referred to in paragraph 1 are to be paid to the applicant on or before 15 May 2015.  

Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 626 of 2014

BETWEEN:

JOEL BELING
Applicant

AND:

SIXTY INTERNATIONAL S.A.
Respondent

JUDGE:

MORTIMER J

DATE:

17 APRIL 2015

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. On 20 March 2015 the Court made orders setting aside the decision of…

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Details
Case
[2015] FCA 355
Decision Date

CaseChat Overview and Summary

The case of Beling v Sixty International S.A. (No 2) involved the applicant, Beling, who was pursuing indemnity costs against the respondent, Sixty International S.A., due to an unreasonably rejected Calderbank offer. The matter was heard in the Federal Court of Australia. Beling, who was a solicitor litigant, had made an offer to settle the case under Calderbank, which the respondent unreasonably rejected. As a result, Beling sought indemnity costs for the additional expenses incurred due to the respondent’s conduct.

The primary legal issue before the court was whether the applicant, being a solicitor litigant, was entitled to indemnity costs in the absence of any contractual obligation to cover professional costs. The court had to determine the appropriate amount of costs to be awarded, considering the scale of the proceedings and the unreasonable rejection of the Calderbank offer. The court acknowledged that indemnity costs were not generally available to solicitor litigants unless there was a contractual basis for such costs.

The court concluded that while the respondent’s rejection of the Calderbank offer was unreasonable, indemnity costs were not available to Beling, the solicitor litigant, in the absence of a contractual provision for professional costs. Instead, the court awarded a lump sum of $11,537 as the appropriate costs for the proceedings. This amount was determined by taking into account the overall scale of the litigation. The court emphasised that the costs awarded were not indemnity costs but rather a reasonable reflection of the costs incurred.

The final orders mandated that the respondent pay the awarded lump sum of $11,537 to the applicant by 15 May 2015. This ruling adhered to Rule 39.32 of the Federal Court Rules 2011, which governs the entry of orders in such cases.

Orders

Orders of the court

1. The costs ordered to be paid by the respondent to the applicant, pursuant to the decision of this Court dated 20 March 2015, be a lump sum in the amount of $11,537.

2. The costs referred to in paragraph 1 are to be paid to the applicant on or before 15 May 2015.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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