Cooper v Kinsella (No 2)

Case [2011] NSWCA 140


Court of Appeal

New South Wales

Case Title: Cooper v Kinsella (No 2)
Medium Neutral Citation: [2011] NSWCA 140
Hearing Date(s): On the papers
Decision Date: 03 June 2011
Jurisdiction:
Before:

Allsop P at 1; Hodgson JA at 2; Sackville AJA at 22

Decision:

(1) Order that Mr Cooper's legal costs of the proceedings below, to be paid by the respondents, be assessed on an ordinary basis up to and including 28 September 2009 and on an indemnity basis thereafter.
(2) Order that Mr Cooper's costs of the appeal, to be paid by the respondents, be assessed on an ordinary basis up to and including 21 January 2011 and on an indemnity basis thereafter.
(3) Order that the respondents pay Mr Cooper's costs of the notice of motion filed 21 March 2011.
[ Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords:

COSTS - Application to vary costs order - Application brought within 14 days limited by UCPR 36.16(3A) but referring to wrong rule - Amended after 14 days to refer to correct rule - Whether indemnity costs justified by contract - Offers of compromise made - Whether court should make order excluding indemnity costs.

Legislation Cited:

Civil Procedure Act 2005 ss 64 and 65
Uniform Civil Procedure Rules (UCPR) rr 36.16, 51.58

Cases Cited:

Abigroup Ltd v Sandtara Pty Ltd [2002] NSWCA 45
Bostik Australia Pty Ltd v Liddiard (No 2) [2009] NSWCA 304
Gomba Holdings (UK) Limited v Minories Finance Limited (No 2) [1993] Ch 171
Nominal Defendant v Hawkins [2011] NSWCA 93
South Eastern Sydney Area Health Service v King [2006] NSWCA 2

Texts Cited:
Category: Costs
Parties:

Benjamin Robert COOPER (appellant)
Ian Anthony KINSELLA  (first respondent)
Simon STONIER  (second respondent)
Scott Benjamin WRIGHT  (third respondent)

Representation
- Counsel:

P BEALE/ E CHRYSOSTOMOU  (appellant)
G B COLYER  (respondents)

- Solicitors:

Mills Oakley Lawyers  (appellant)
Kemp Strang Lawyers  (respondents)

File number(s): 2008/319361
Decision Under Appeal
- Court / Tribunal:
- Before:
- Date of Decision:
- Citation:
- Court File Number(s)
Publication Restriction:

Judgment

  1. ALLSOP P: I agree with Hodgson JA.

  1. HODGSON JA: The principal decision of this appeal was given on 11 March 2011: [2011] NSWCA 45. On that occasion, the Court made the following orders:

(1) Appeal allowed.

(2) Orders below set aside.

(3) Judgment for Mr Cooper against the respondents for $133,923.

(4) Order that the respondents pay Mr Cooper interest on $133,923 from 1 September 2005 until to-day at prescribed rates.

(5) Order that the respondents pay Mr Cooper's costs of the proceedings below.

(6) Order that the respondents pay Mr Cooper's costs of the appeal, and that they have a certificate under

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AGLC
Cooper v Kinsella (No 2) [2011] NSWCA 140
Case
[2011] NSWCA 140
Decision Date

CaseChat Overview and Summary

The case of *Cooper v Kinsella (No 2)* concerned an application to vary a costs order made by the primary judge. The dispute revolved around whether the respondents should be ordered to pay the appellant's legal costs on an indemnity basis, particularly in light of offers of compromise made during the proceedings. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the initial application to vary the costs order, which initially referred to an incorrect rule but was later amended after the 14-day time limit stipulated by UCPR 36.16(3A), should be permitted. Furthermore, the court had to determine whether the terms of a contract justified an order for indemnity costs, and whether, in light of offers of compromise, the court should make an order excluding indemnity costs.

The Court of Appeal reasoned that while the initial application to vary the costs order was made within the 14-day period prescribed by UCPR 36.16(3A), it referred to the wrong rule. The subsequent amendment to refer to the correct rule occurred after this time limit had expired. Despite this, the court considered the substance of the application and the circumstances surrounding the offers of compromise. The court ultimately ordered that the appellant's legal costs of the proceedings below, to be paid by the respondents, be assessed on an ordinary basis up to and including 28 September 2009 and on an indemnity basis thereafter. Similarly, the appellant's costs of the appeal were to be assessed on an ordinary basis up to and including 21 January 2011 and on an indemnity basis thereafter. The respondents were also ordered to pay the appellant's costs of the notice of motion filed on 21 March 2011.

Orders

Orders of the court

(1) Order that Mr Cooper's legal costs of the proceedings below, to be paid by the respondents, be assessed on an ordinary basis up to and including 28 September 2009 and on an indemnity basis thereafter.

(2) Order that Mr Cooper's costs of the appeal, to be paid by the respondents, be assessed on an ordinary basis up to and including 21 January 2011 and on an indemnity basis thereafter.

(3) Order that the respondents pay Mr Cooper's costs of the notice of motion filed 21 March 2011.

[ Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

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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