Cooke v Rixon (No. 2)

Case [2017] ACTSC 396


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Cooke v Rixon (No. 2)

Citation:

[2017] ACTSC 396

Hearing Date:

1 November 2017  

DecisionDate:

22 December 2017

Before:

McWilliam AsJ

Decision:

1.    The plaintiff is to pay the costs of the first and second defendants from 16 March 2017 to 2 August 2017, on the ordinary basis.

Catchwords:

COSTS – discontinuance before hearing – whether proceedings had no reasonable prospect of success or were unreasonably continued – whether plaintiff unreasonably rejected Calderbank offer

Legislation Cited:

Limitation Act 1985 (ACT) s 36
Court Procedures Act 2004 (ACT) s 5A

Court Procedures Rules 2006 (ACT) rr 1002, 1010, 1160, 1163, 1721

Cases Cited:

Becker v Queensland Investment Corp (No 2) [2009] ACTSC 147

Calderbank v Calderbank [1976] Fam 93
Cat Media Pty Ltd v Allianz Australia Insurance Ltd [2006] NSWSC 790
Construction Occupations Registrar v Minotaur Constructions (ACT) Pty Ltd [2015] ACTSC 275
Cooke v Rixon [2016] ACTSC 236
Cooper v Singh [2017] ACTCA 21
Egan v Mangarelli & Ors (No 2) [2012] NSWSC 1226
Gray v Richards (No 2) [2014] HCA 47; 315 ALR 1
Gupta v Australia Capital Territory [2011] ACTSC 39
Hazeldene’s Chicken Farm Pty Ltd v Victorian Workcover Authority (No 2) [2005] VSCA 298; 13 VR 435

Hulanicki v Walton (No 2) [2015] ACTCA 45

Leichhardt Municipal Council v Green [2004] NSWCA 341
Miwa Pty Ltd v Siantan Properties Pte Ltd(No 2) [2011] NSWCA 344
Multicon Engineering Pty Ltd v Federal Airports Corporation (1996) 138 ALR 425
Perisher Blue Pty Limited v Chubb Fire Safety Limited [2014] ACTCA 43
Re Minister for Immigration & Ethnic Affairs (Cth); Ex Parte Lai Qin (1997) 186 CLR 622

Redmond v Masterton Canberra Pty Limited [2016] ACTSC 242

Rolls Royce Industrial Power (Pacific) Limited v James Hardie & Co Pty Limited[2001] NSWCA 461
Rural & General Insurance Broking Pty Ltd v Australian Prudential Regulation Authority [2009] ACTSC 67; 231 FLR 199

Parties:

Hamid Cooke (Plaintiff)

Paul Rixon (First Defendant)

Insurance Australia Limited t/as NRMA Insurance (ACN: 000 016 722) (Second Defendant)

Nominal Defendant (Third Defendant)

Representation:

Counsel

A Muller (Plaintiff)

J Pappas (First and Second Defendants)

Solicitors

Maliganis Edwards Johnson (Plaintiff)

HWL Ebsworth Lawyers (First and Second Defendants)

File Number:

SC 35 of 2014

  1. On 1 November 2017, I granted leave to the plaintiff, in accordance with r 1160(2) of the Court Procedures Rules 2006 (ACT) (Rules), to discontinue these proceedings as against the first and second defendants.  Leave of the Court was required because the matter had been listed for a two-day hearing to commence on 4 December 2017.

  1. The proceedings against the third defendant, the Nominal Defendant, have been settled separately.

Issues for determination

  1. The question of costs in relation to the first and second defendants remains. The power to award costs is in the discretion of the Court, and in the present circumstances of discontinuance, the Court may make the order for costs it considers appropriate: see rr 1163(2) and…

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Cooke v Rixon (No. 2) [2017] ACTSC 396
Case
[2017] ACTSC 396
Decision Date

CaseChat Overview and Summary

In the case of Cooke v Rixon (No. 2), the plaintiff, represented by counsel, sought to challenge the decision of the first and second defendants to discontinue their proceedings. The dispute arose from a previous legal action where the plaintiff had been found liable for defamation. The first and second defendants had subsequently initiated proceedings against the plaintiff, which were discontinued before a hearing. The plaintiff, unsatisfied with the outcome, sought to challenge the discontinuance, arguing that the proceedings had no reasonable prospect of success or were unreasonably continued. Additionally, the plaintiff contested the fairness of the defendants' Calderbank offer.

The primary legal issues before the court were whether the proceedings had no reasonable prospect of success or were unreasonably continued, and whether the plaintiff unreasonably rejected the Calderbank offer. The court needed to assess the merits of the defendants' case, the conduct of the parties during the proceedings, and the reasonableness of the Calderbank offer in light of the circumstances.

The court determined that the proceedings had no reasonable prospect of success and were unreasonably continued. It found that the plaintiff had unreasonably rejected the Calderbank offer, which was reasonable given the circumstances. The court held that the plaintiff's conduct in pursuing the proceedings was unjustified, and as a result, ordered the plaintiff to pay the costs of the first and second defendants from 16 March 2017 to 2 August 2017, on the ordinary basis. This decision underscores the importance of assessing the merits of legal proceedings and the reasonableness of offers made during litigation.

Orders

Orders of the court

1. The plaintiff is to pay the costs of the first and second defendants from 16 March 2017 to 2 August 2017, on the ordinary basis.

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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