CSR Ltd v Eddy

Case [2008] NSWCA 83


Reported Decision: 70 NSWLR 725

New South Wales


Court of Appeal


CITATION: CSR LIMITED v EDDY [2008] NSWCA 83
This decision has been amended. Please see the end of the judgment for a list of the amendments.
HEARING DATE(S): 21 April 2008
 
JUDGMENT DATE: 

2 May 2008
JUDGMENT OF: Hodgson JA at 1; McColl JA at 10; Basten JA at 11
DECISION: Appeal dismissed with costs.
CATCHWORDS: COSTS – costs assessment – party and party costs – failure of costs assessor to disclose costs agreement between other party and solicitor – client legal privilege – procedural fairness - COSTS – scope and operation of indemnity principle – conditional costs agreement – no bill of costs delivered - PROCEDURAL FAIRNESS – practical injustice – effect of unfairness on outcome - WORDS & PHRASES – “practical injustice”
LEGISLATION CITED: Evidence Act 1995 (NSW), ss 118, 119, Part 3.10, Div 1
Legal Profession Act 1987 (NSW), ss 3, 177, 186, 188, 192, 202, 203, 206, 207, 208, 208F, 208G, 208H, 208S, 208KA, 208KC, 208KI, 208JJA
Legal Profession Act 2004 (NSW), s 387, Schedule 9, cl 18, cl 22A
Legal Profession Amendment Act 2006 (No. 30) (NSW), Schedule 8, [4]
Legal Profession Amendment (Costs Assessment) Regulation 1999 (NSW), cl 261
CATEGORY: Principal judgment
CASES CITED: Apple Computer Australia Pty Ltd v Wily [2002] NSWSC 855
Applicant VEAL of 2002 v Minister for Immigration and Multicultural and Indigenous Affairs (2005) 225 CLR 88; [2005] HCA 72
Attorney-General (NSW) v Kennedy Miller Television Pty Ltd (1998) 43 NSWLR 729
Attorney General for the Northern Territory v Maurice (1986) 161 CLR 475
Balenzuela v De Gail (1959) 101 CLR 226
Cook v Pasminco Pty Ltd (No. 2) (2000) 107 FCR 44; [2000] FCA 1819
CSR Ltd v Eddy (2005) 226 CLR 1; [2005] HCA 64
Dyktynski v BHP Titanium Minerals Pty Ltd (2004) 60 NSWLR 203; [2004] NSWCA 154
Giannarelli v Wraith (No. 2) (1991) 171 CLR 592
Gundry v Sainsbury [1910] 1 KB 645
Kioa v West (1985) 159 CLR 550
Re Bauhaus Pyrmont Pty Ltd (In liq) [2006] NSWSC 543
Re Global Medical Imaging Management Ltd (In liq) [2001] NSWSC 476
Re Minister for Immigration and Multicultural and Indigenous Affairs; Ex parte Lam (2003) 214 CLR 1; [2003] HCA 6
Re Refugee Review Tribunal; Ex parte Aala (2000) 204 CLR 82; [2000] HCA 57
Rickard Constructions Pty Ltd v Rickard Hails Moretti Pty Ltd [2006] NSWSC 234
Standard Chartered Bank of Australia Limited v Antico (1995) 36 NSWLR 87
Stead v State Government Insurance Commission (1986) 161 CLR 141
Tarry v Pryce (No. 2) (1987) 88 FLR 270
Wentworth v Rogers [2006] NSWCA 145; (2006) 66 NSWLR 474
PARTIES: CSR Limited (First Appellant)
Midalco Pty Ltd (Second Appellant)
Jarradd Eddy (Respondent)
FILE NUMBER(S): CA 40212/07
COUNSEL: TGR Parker SC (Appellants)
M Leeming SC/C Withers (Respondent)
SOLICITORS: Makinson & d'Apice (Appellants)
Alex Stuart & Associates (Respondent)
LOWER COURT JURISDICTION: Supreme Court
LOWER COURT FILE NUMBER(S): SC 13567/06
LOWER COURT

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CSR Ltd v Eddy [2008] NSWCA 83
Case
[2008] NSWCA 83
Decision Date

CaseChat Overview and Summary

CSR Ltd and Mr Eddy were the parties involved in a dispute concerning costs assessment. Mr Eddy had been successful in a previous proceeding against CSR Ltd, and sought to recover his costs. The costs assessor failed to disclose a costs agreement between Mr Eddy and his solicitor, which CSR Ltd argued constituted a breach of procedural fairness. The matter proceeded to the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the costs assessor's failure to disclose the costs agreement between Mr Eddy and his solicitor amounted to a denial of procedural fairness to CSR Ltd, and if so, whether this denial caused a "practical injustice" that warranted intervention. The Court also considered the scope and operation of the indemnity principle in the context of a conditional costs agreement where no bill of costs had been delivered.

The Court of Appeal held that the failure to disclose the costs agreement did not, in the circumstances, amount to a denial of procedural fairness that caused practical injustice. The Court reasoned that CSR Ltd had not demonstrated that disclosure of the agreement would have led to a different outcome in the costs assessment. The indemnity principle, which generally allows a successful party to recover costs reasonably incurred, was applied, and the Court found no basis to depart from it. The Court also noted that the absence of a formal bill of costs did not automatically invalidate the assessment, particularly where the nature of the costs agreement was understood.

The appeal was dismissed, and CSR Ltd was ordered to pay Mr Eddy's costs.

Orders

Orders of the court

Appeal dismissed with costs.

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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