Braham v Stephan (No 2)

The case of Braham v Stephan (No 2) involved the plaintiffs, Braham, and the defendants, Stephan, in a dispute concerning the breach of a lease. The plaintiffs claimed damages for losses they alleged were caused by the defendants’ breach of the lease agreement. The case was heard in the Supreme Court of Victoria.

The primary legal issue the court was required to decide was whether the plaintiffs were entitled to recover legal costs incurred due to the breach of the lease, as well as damages for loss of reputation and/or distress. This issue was considered in light of the High Court decision in Baltic Shipping Company v Dillon (1993) 176 CLR 344, which set a precedent for the recoverable costs and damages in such cases. The court also needed to determine the appropriate proportion of costs, if any, the plaintiffs should pay to the first defendant, given that the plaintiffs achieved only partial success in respect of an unparticularised claim and the first defendant was successful in the primary issues of the proceeding. This aspect was guided by the principles set out in Chen v Chan [2009] VSCA 233.

In delivering the judgment, the court held that the plaintiffs were not entitled to recover legal costs caused by the breach of the lease. The court found that the plaintiffs had not suffered any loss of reputation or distress as a result of the breach. The court reasoned that the damages claimed were speculative and not directly caused by the breach. Furthermore, the court determined that the plaintiffs should pay a proportion of the first defendant’s costs, considering the partial success of the plaintiffs and the first defendant’s success on the primary issues. The court concluded that the plaintiffs should bear 20% of the first defendant’s costs.

The final orders of the court were that the plaintiffs were not entitled to recover the legal costs caused by the breach of the lease or damages for loss of reputation and/or distress. Additionally, the plaintiffs were ordered to pay 20% of the first defendant’s costs.