FEDERAL COURT OF AUSTRALIA
Crowley v Worley Limited (Costs) [2024] FCA 211
File number: NSD 1292 of 2015 Judgment of: JACKMAN J Date of judgment: 7 March 2024 Catchwords: COSTS – whether costs should be apportioned – where applicant succeeded on several questions but failed to obtain compensation – where any victory was Pyrrhic – costs not apportioned
COSTS – whether order should extend to costs of initial trial before remitter – where evidence from initial trial deployed on remitter – where initial trial took 20 days but trial on remitter took 5 days – order extended to costs of initial trial
Cases cited: Crowley v Worley Limited (No 2) [2023] FCA 1613
Plaintiff M76/2013 v Minister for Immigration, Multicultural Affairs & Citizenship [2013] HCA 53; (2013) 251 CLR 322
Division: General Division Registry: New South Wales National Practice Area: Commercial and Corporations Sub-area: Corporations and Corporate Insolvency Number of paragraphs: 5 Date of last submissions: 4 March 2024 Counsel for the Applicant: Mr D Sulan SC, Mr A Edwards and Mr M Pulsford Solicitor for the Applicant: Shine Lawyers Counsel for the Respondent: Ms W A Harris KC, Mr R G Craig KC and Ms J A Findlay Solicitor for the Respondent: Herbert Smith Freehills ORDERS
NSD 1292 of 2015 BETWEEN: LARRY CROWLEY
Applicant
AND: WORLEY LIMITED (ACN 096 090 158)
Respondent
ORDER MADE BY:
JACKMAN J
DATE OF ORDER:
7 MARCH 2024
THE COURT ORDERS THAT:
1.The Originating Application and Fourth Further Amended Statement of Claim be dismissed.
2.The applicant pay the respondent’s costs of and incidental to the proceedings, including the costs of and incidental to the initial trial.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
JACKMAN J:
In Crowley v Worley Limited (No 2) [2023] FCA 1613, having answered the 15 questions agreed upon by the parties, I gave the parties the opportunity to file and serve written submissions and any affidavit or affidavits in support in relation to the question of costs and the making of final orders. Written submissions and affidavits have now been filed and served, and as I anticipated at [266], it is appropriate that I decide those remaining questions on the papers. In the reasons below, I adopt the glossary set out at [4] of my merits judgment.
The parties are agreed that I should now make orders that the proceeding be dismissed.
As to costs, WOR submits that the applicant should pay WOR’s costs of and incidental to the proceedings, including the costs of and incidental to the initial trial (which was the subject of the judgment in Crowley v Worley Limited [2020] FCA 1522). The applicant submits that I should apportion costs and order that the applicant pay 50% of WOR’s costs of the initial trial and the remitted hearing, or such other percentage as I determine is appropriate.
While I accept that the applicant succeeded with respect to a significant number of…
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- Case
- [2024] FCA 211
- Decision Date
CaseChat Overview and Summary
The central legal issue the court had to address was whether the costs incurred should be apportioned between the parties, given Mr. Crowley's partial success in the litigation. The court also had to determine whether the costs of the initial trial, which had been remitted, should be included in the order for costs. The applicant argued that his success in some aspects of the litigation justified a cost apportionment, while the respondent maintained that the lack of any compensation rendered the victory Pyrrhic and thus not warranting any cost apportionment.
The court, after a detailed analysis, ruled that Mr. Crowley’s victory was indeed Pyrrhic as he did not obtain any compensation. Consequently, the court found that the costs should not be apportioned. Additionally, the court held that since evidence from the initial trial was used in the remitted trial, the costs of the initial trial should be included in the order for costs. The respondent was awarded the costs of both the remitted trial and the initial trial, reflecting the comprehensive nature of the litigation process.
The final orders of the court were that the originating application and the fourth further amended statement of claim be dismissed. Furthermore, Mr. Crowley was ordered to pay the respondent's costs of and incidental to the proceedings, including the costs of and incidental to the initial trial. The entry of these orders was governed by Rule 39.32 of the Federal Court Rules 2011.
Orders
Orders of the court
1. The Originating Application and Fourth Further Amended Statement of Claim be dismissed.
2. The applicant pay the respondent’s costs of and incidental to the proceedings, including the costs of and incidental to the initial trial.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
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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