Calandra v Murden

Case [2015] NSWCA 231


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Calandra v Murden [2015] NSWCA 231
Hearing dates:28 July 2015
Decision date: 12 August 2015
Before: Beazley P; Meagher JA; Leeming JA
Decision:

1. Grant leave to appeal.
2. Appeal allowed with costs.
3. Set aside the orders made in the Common Law Division on 17 April 2015, and in lieu thereof, dismiss the appeal with costs.

Catchwords: ADMINISTRATIVE LAW – Legal Profession Act 2004 (NSW), s 368(5) – where costs assessor certified assessment of party/party costs – where liability for costs order released by agreement – where costs assessor’s certificates filed in Local Court – where no amount of unpaid party/party costs at time of filing – whether Local Court had power to set aside judgment entered on filing of certificate, including under Uniform Civil Procedure Rules, r 36.15 or in exercise of implied power
Legislation Cited: Civil Procedure Act 2005 (NSW), ss 17, 133
Legal Profession Act 2004 (NSW)
Local Court Act 2007 (NSW), ss 39, 40
Uniform Civil Procedure Rules 2005 (NSW)
Cases Cited: Carr and Purves v Thomas [2009] NSWCA 208
Doyle v Hall Chadwick [2007] NSWCA 159
Frumar v The Owners of Strata Plan 36957 [2010] NSWCA 172
Grassby v The Queen [1989] HCA 45; 168 CLR 1
Hughes v Justin [1894] 1 QB 667
Category:Principal judgment
Parties: Emilio Calandra (First Applicant)
Jeanelle Calandra (Second Applicant)
John Murden (Respondent)
Representation:

Counsel:
PCB Semmler QC, S Tzouganatos (First and Second Applicants)
B Toomey QC, P R Glissan (Respondent)

  Solicitors:
Turner Freeman (First and Second Applicants)
T D Kelly & Co (Respondent)
File Number(s):2015/135803
Publication restriction:Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Common Law
Citation:
[2015] NSWSC 424
Date of Decision:
17 April 2015
Before:
R S Hulme AJ
File Number(s):
2013/320857

HEADNOTE

[This headnote is not to be read as part of the judgment]

By s 368(5) of the Legal Profession Act 2004 (NSW), a judgment is deemed to be entered upon the filing of costs assessors’ certificates for the amount of the costs so assessed. On 15 January 2013, the respondent filed in the Local Court a form which was headed “Filing of Certificate of Order” to which was attached two costs assessor’s certificates. On the same day, judgment was entered in the Local Court in favour of the respondent against the applicants for $16,752.50.

The principal costs assessment was in respect of costs that the applicants had been ordered to pay on 7 July 2010 in proceedings in the Equity Division. The applicants claimed that, at the time of that assessment and at the time the certificate was filed, there was no amount of those costs which was ‘unpaid’ because the respondent had released them from liability under a Deed of Release and Indemnity.

The applicants sought to set aside the judgment entered in the Local Court. That Court did so on the basis that it had not been entered in…

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Calandra v Murden [2015] NSWCA 231
Case
[2015] NSWCA 231
Decision Date

CaseChat Overview and Summary

The appeal concerned the power of the Local Court to set aside a judgment entered upon the filing of a costs assessor's certificate. The dispute arose after a costs assessor certified an assessment of party and party costs, and the liability for this costs order was subsequently released by agreement between the parties. Despite this agreement, the costs assessor's certificates were filed in the Local Court, and a judgment was entered. The central question was whether the Local Court possessed the authority to vacate this judgment, particularly in circumstances where no amount of unpaid party and party costs existed at the time of filing.

The Court of Appeal was required to determine whether the Local Court had the power to set aside the judgment. This involved considering whether such power could be exercised under rule 36.15 of the Uniform Civil Procedure Rules, or alternatively, in the exercise of an implied power inherent in the court. The interpretation of section 368(5) of the *Legal Profession Act 2004* (NSW) was also central to the determination of the court's jurisdiction in this matter.

The Court of Appeal found that the Local Court did not have the power to set aside the judgment under rule 36.15 of the Uniform Civil Procedure Rules, nor did it possess an implied power to do so in these circumstances. The Court reasoned that the filing of the costs assessor's certificate in the Local Court did not create a judgment debt where none existed, particularly given the subsequent agreement releasing the liability for costs. Consequently, the appeal was allowed, and the orders made by the Common Law Division were set aside, with the appeal being dismissed.

Orders

Orders of the court

1. Grant leave to appeal.

2. Appeal allowed with costs.

3. Set aside the orders made in the Common Law Division on 17 April 2015, and in lieu thereof, dismiss the appeal with costs.

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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