Capogreco v Rogerson

Case [2016] NSWCA 61


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Capogreco v Rogerson [2016] NSWCA 61
Hearing dates:23 March 2016
Decision date: 23 March 2016
Before: Basten JA at [1];
Simpson JA at [18]
Decision:

(1)   Dismiss the application for leave to appeal.

 (2)   The applicants to pay the first respondent’s costs.
Catchwords:

APPEAL – application for leave to appeal – costs – challenge to apportionment of costs – partial success at trial – whether costs should be apportioned as to causes of action where issues intertwined – whether apportionment to be based on pre-trial costs of preparation of evidence – whether costs assessor could allocate costs after the event

  COSTS – Calderbank letter – whether offer of fixed costs a genuine offer of compromise
Category:Principal judgment
Parties: Antonio Capogreco (First Applicant)
Rosa Capogreco (Second Applicant)
Anna Pirrello (Third Applicant)
Joseph Mark Pirrello (Fourth Applicant)
Graeme Rogerson (First Respondent)
Bruce McHugh (Second Respondent)
Representation:

Counsel:
Mr MR Pesman SC/Mr A Di Francesco (Applicants)
Mr RS Angyal SC (First Respondent)

  Solicitors:
Wood Marshall Williams Pty Ltd (Applicants)
Macquarie Legal Practice (First Respondent)
Equilaw Solicitors (Second Respondent)
File Number(s):CA 2015/341848
 Decision under appeal 
Court or tribunal:
Supreme Court
Jurisdiction:
Equity Division
Date of Decision:
23 October 2015
Before:
Bergin CJ in Eq
File Number(s):
2013/369921

Judgment

  1. BASTEN JA: In January 2006 the applicants purchased shares in a racehorse. The horse did not live up to expectations and, in April 2012, the original purchaser (who had retained a share in the horse) namely the first respondent, Mr Rogerson, sold the horse to the second respondent, Mr Bruce McHugh.

  2. The applicants asserted that they had not consented to the sale of their shares in the horse and brought proceedings in the Equity Division in December 2013.

  3. The trial ran for four days before Bergin CJ in Eq. In September 2015 the Chief Judge delivered judgment dismissing the claims brought by the applicants against Mr Rogerson for misleading or deceptive conduct but finding that Mr Rogerson did not have authority to sell the applicants’ shares in the horse and making declarations as to their interests in the horse and an order for account against Mr McHugh. The applicants reached a settlement with Mr McHugh.

  4. Subsequently, on 23 October 2015, the Chief Judge made orders with respect to costs. It is from those orders that the applicants now seek leave to appeal.

  5. The orders required that the applicants pay 75% of Mr Rogerson’s costs and that Mr McHugh pay 25% of the applicants’ costs. Before the Chief Judge the applicants had submitted that costs should be awarded in favour of the successful party on each of the major issues addressed at trial. The Chief Judge, who had had the benefit of hearing the trial, declined to make such an order on the basis that it would give rise to a burdensome process of disaggregation and assessment, in circumstances where much of the evidence went to more than one issue. Although the…

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AGLC
Capogreco v Rogerson [2016] NSWCA 61
Case
[2016] NSWCA 61
Decision Date

CaseChat Overview and Summary

The applicants, Capogreco and others, sought leave to appeal against orders made by the primary judge concerning the apportionment of costs following a trial. The dispute arose from a complex litigation where the applicants had achieved only partial success. The appeal concerned the principles governing the allocation of costs, particularly where issues were intertwined and where the costs assessor had made allocations after the event.

The central legal issues before the Court of Appeal were whether the costs should have been apportioned according to separate causes of action, even where those causes of action were intertwined, and whether the apportionment should have been based on the pre-trial costs of preparing evidence. Additionally, the court considered whether a costs assessor possessed the power to allocate costs after the event, and whether a *Calderbank* offer, which proposed a fixed sum for costs, constituted a genuine offer of compromise.

Basten and Simpson JJA dismissed the application for leave to appeal. Their Honours reasoned that the primary judge’s approach to costs was not demonstrably wrong in law. The court found that the intertwining of issues made a strict apportionment by cause of action impractical and that the costs assessor had acted within their powers in allocating costs after the event. The *Calderbank* offer was also considered to be a valid offer of compromise, despite its fixed nature.

Consequently, the application for leave to appeal was dismissed, and the applicants were ordered to pay the first respondent’s costs.

Orders

Orders of the court

(1) Dismiss the application for leave to appeal.

(2) The applicants to pay the first respondent’s 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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