Coshott v Shipton Lodge Cobbitty Pty Ltd

The applicants, Coshott and others, sought leave to appeal to the Court of Appeal from the dismissal of their appeals in the District Court. Those District Court appeals concerned two separate decisions of the Local Court concerning the agistment of horses. The respondents were Shipton Lodge Cobbitty Pty Ltd and others. The core of the dispute involved allegations of breach of contract and bailment arising from the agistment of the applicants' horses.

The Court of Appeal was required to determine two primary legal issues. Firstly, whether the District Court had erred in its assessment of whether a contract by conduct had been established between the parties in relation to the agistment. Secondly, the Court had to consider whether the District Court had correctly determined the standard of care owed by the respondents as bailees. A further issue arose regarding the competency of the appeal, specifically whether the costs awarded in the Local Court were to be included when assessing if the "matter at issue" on appeal amounted to $100,000, which is a threshold for certain appeals.

In dismissing the application for leave to appeal and the appeal, the Court of Appeal found that the District Court had not erred in its findings. The Court was satisfied that the District Court had correctly applied the principles relating to contract by conduct and the standard of care owed in a bailment relationship. Crucially, the Court determined that the costs awarded in the Local Court were to be included in the calculation of the "matter at issue" for the purposes of the appeal threshold. As the total amount, including costs, did not reach $100,000, the appeal was not competent. Consequently, the application for leave to appeal and the appeal were dismissed, with the claimants ordered to pay the respondents' costs.