Court of Appeal
Supreme Court
New South Wales
Medium Neutral Citation: Brighten v Traino (No 2) [2019] NSWCA 203 Hearing dates: On the papers Decision date: 16 August 2019 Before: Basten JA; Gleeson JA; Brereton JA Decision: (1) Vary the orders made on 8 July 2019 by revoking order (2)(d), with the intention that order (3) made in the District Court on 30 July 2018 will continue to operate.
(2) Otherwise dismiss the applicants’ notice of motion filed 18 July 2019.
(3) Order that the first and second respondents (the applicants on the motion) pay the appellant’s costs of the motion.Catchwords: COSTS – reinstatement of costs order at trial – offer of compromise in relation to appeal – early ‘walk away’ offer – no evidence of costs incurred – whether genuine compromise – whether appeal doomed to fail – offerors’ position not explained – Uniform Civil Procedure Rules 2005 (NSW), r 20.26 Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW), r 20.26 Cases Cited: Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd (No 2) [2009] NSWCA 12
Leach v Nominal Defendant (QBE Insurance (Australia) Ltd) (No 2) [2014] NSWCA 391
Regency Media Pty Ltd v AAV Australia Pty Ltd [2009] NSWCA 368Category: Costs Parties: Erin Brighten (Appellant)
Pasquali John Traino (First Respondent)
Sting Bar Pty Ltd (Second Respondent)
Brett William Richardson (Third Respondent)Representation: Counsel:
Solicitors:
S E McCarthy (Appellant)
Norwest Lawyers (Appellant)
Wotton & Kearney Lawyers (First and Second Respondents)
Macedone Legal (Third Respondent)
File Number(s): 2018/193822 Decision under appeal
- Court or tribunal:
- District Court
- Jurisdiction:
- Civil
- Date of Decision:
- 30 May 2018
- Before:
- Gibb DCJ
- File Number(s):
- 2016/334657
Judgment
-
THE COURT: On 8 July 2019 this Court upheld, in part, an appeal by Ms Brighten with respect to a judgment given in the District Court on 30 May 2018. The trial judge had dismissed her claims against each of the three respondents in this Court. This Court set aside that order and gave judgment in favour of Ms Brighten against Brett William Richardson, the third respondent to the appeal. However, the Court dismissed her appeal with respect to the first respondent (Pasquali John Traino) and the second respondent (Sting Bar Pty Ltd). In order to give effect to these outcomes, the Court set aside orders (1) and (5) made in the District Court. This Court upheld the judgment below so far as it dismissed the plaintiff’s claims against the first and second defendants and ordered that the plaintiff pay the first and second defendants’ costs of the trial (order (2)(d)).
Costs of trial
-
At that time, the Court was not aware that the costs order made on 30 May 2018 had been varied on 30 July 2018 with respect to the costs of the first and second defendants. The new order read as follows:
“3. I order the plaintiff to pay the first and second defendants’ costs of the proceedings:
(a) on an ordinary basis until 16 February 2018; and
(b) thereafter (and including…
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- AGLC
- Brighten v Traino (No 2) [2019] NSWCA 203
- Case
- [2019] NSWCA 203
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Court of Appeal were whether the offer of compromise made by the respondents was a genuine offer to settle the proceedings, and whether the appeal was so lacking in merit that it could be considered doomed to fail. These questions were central to determining whether the court should exercise its discretion to revoke the costs order made on 8 July 2019, which had effectively set aside the District Court's costs order. The court also considered the application of rule 20.26 of the Uniform Civil Procedure Rules 2005 (NSW) in the context of an early "walk away" offer where no evidence of costs incurred by the offeror was presented.
The Court of Appeal reasoned that the respondents' offer of compromise was not sufficiently explained, particularly in relation to their position on costs. The court noted that the offer was an early "walk away" offer and that there was no evidence presented to demonstrate the costs incurred by the respondents. Without this information, the court could not be satisfied that the offer was a genuine compromise or that the appeal was doomed to fail. Consequently, the court found no basis to revoke the costs order made on 8 July 2019, which had reinstated the District Court's costs order.
The Court of Appeal ordered that the orders made on 8 July 2019 be varied by revoking order (2)(d), with the intention that the District Court's order of 30 July 2018 would continue to operate. The applicants' notice of motion filed on 18 July 2019 was otherwise dismissed, and the applicants were ordered to pay the appellant's costs of the motion.
Orders
Orders of the court
(1) Vary the orders made on 8 July 2019 by revoking order (2)(d), with the intention that order (3) made in the District Court on 30 July 2018 will continue to operate.
(2) Otherwise dismiss the applicants’ notice of motion filed 18 July 2019.
(3) Order that the first and second respondents (the applicants on the motion) pay the appellant’s costs of the motion.
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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