Cleve Smith Excavations Pty Ltd v Hodgson [No 2]

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CITATION: Cleve Smith Excavations Pty Ltd v Hodgson [No 2] [2010] NSWDC 270
HEARING DATE(S): 5 November 2010
 
JUDGMENT DATE: 

3 December 2010
JURISDICTION: Civil
JUDGMENT OF: Levy SC DCJ
DECISION: 1. Judgment for the defendant cross claimant in the sum of $73.664.37;
2. See paragraph [34] for consequential orders.
CATCHWORDS: JUDGMENTS – calculation by parties of amount of final judgment including interest to reflect findings in primary judgment – application by a party to re-open judgment – whether indicated - PROCEDURE – set-off where claim and cross claim succeeded in differing amounts - COSTS – manner in which costs ought to be payable after set-off – whether indemnity costs indicated
LEGISLATION CITED: Civil Procedure Act 2005, s 98(4)(b)Environmental Planning and Assessment Act 1979, s 76A(1)(b); s 122(b)(ii)Uniform Civil Procedure Rules 2005, r 36.16(1)
CASES CITED: Cleve Smith Excavations Pty Ltd v Hodgson [2009] NSWDC 232
Smith v NSW Bar Association [1992] HCA 36; (1992) 176 CLR 256
Texas Co (Australasia) Ltd v Federal Commissioner of Taxation [1940] HCA 9; (1940) 63 CLR 382
PARTIES: Cleve Smith Excavations Pty Ltd (Plaintiff)
Martin Robert Hodgson (Defendant)
FILE NUMBER(S): 1493 of 2009; 2009/334526
COUNSEL: Mr J Lazarus (Plaintiff)
Mr P Menadue (Defendant)
SOLICITORS: Conditsis & Associates (Plaintiff)
Brennan Tipple Partners (Defendant)

JUDGMENT

Background

1. On 15 October 2010, primary findings and reasons for judgment were delivered in these proceedings. A verdict was entered in favour of the plaintiff, Cleve Smith Excavations Pty Ltd, with damages assessed in the sum of $108,148.76. On the defendant’s cross claim against the plaintiff, a verdict was entered in favour of the defendant/cross claimant, Mr Hodgson, with damages assessed in the sum of $126,743. These amounts excluded pre-judgment interest : Cleve Smith Excavations Pty Ltd v Hodgson [2009] NSWDC 232.

2. The parties were required to calculate the amount of the final judgment to reflect the primary findings, including the amount for interest. These supplementary reasons arise from the parties being given an opportunity to prepare submissions on pre-judgment interest to reflect the primary findings, as well as questions concerning set-off and costs.

3. Following the delivery of the primary reasons, the plaintiff filed a notice of motion seeking to re-open the judgment in order to deal with a matter upon which final submissions had previously been made at the conclusion of the hearing. The plaintiff submitted that there had been no findings made in respect of those submissions. The defendant contested that view, and made reference to a portion of the primary reasons to support that contested view.

4. In the paragraphs that follow, these reasons deal with a minor slip rule amendment to the primary reasons, the identification of the agreed final amount for judgment in the proceedings after calculation of interest and set-off, the plaintiff’s application to re-open the proceedings, the plaintiff’s arguments on the manner in which costs ought to be payable, and an application by the defendant for indemnity costs.

Slip rule amendment

5. The first issue…

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Details
Case
[2010] NSWDC 270
Decision Date

CaseChat Overview and Summary

The case of Cleve Smith Excavations Pty Ltd v Hodgson [No 2] involved a dispute between the plaintiff, Cleve Smith Excavations Pty Ltd, and the defendant, Hodgson. The primary judgment was appealed, and the parties subsequently calculated the final amount due, including interest. The defendant cross-claimant sought to reopen the judgment to reflect these findings. The dispute encompassed several legal issues, including whether the court should reopen the judgment to account for the amount calculated by the parties, the procedure for setting off claims where both the claim and cross-claim succeed in differing amounts, and the manner in which costs should be payable following such a set-off, specifically whether indemnity costs were indicated.

The court examined the application to reopen the judgment and found that it was not indicated. The court noted that the primary judgment already determined the issues in dispute and there was no error in the original judgment that warranted reopening. Regarding the set-off, the court held that the differing amounts of the claim and cross-claim necessitated a calculation of the net liability. The court also considered the implications for costs, ruling that indemnity costs were not appropriate in this instance, given the nature of the proceedings and the fact that both parties were successful on certain claims.

The court ordered that judgment be entered in favour of the defendant cross-claimant in the sum of $73,664.37, reflecting the calculations by the parties. The court made further consequential orders as detailed in paragraph [34] of the judgment. The decision underscores the importance of correctly calculating and applying set-off in civil proceedings and the limited circumstances under which a judgment may be reopened.

Orders

Orders of the court

1. Judgment for the defendant cross claimant in the sum of $73.664.37;

2. See paragraph [34] for consequential orders.

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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