FEDERAL COURT OF AUSTRALIA
Descon Group Australia Pty Ltd v Rodd [2023] FCA 1494
Appeal from: Application for leave to appeal: Wavish v Descon Group Australia Pty Ltd [2022] FedCFamC2G 912 File number(s): VID 741 of 2022 Judgment of: MCELWAINE J Date of judgment: 29 November 2023 Catchwords: COSTS –application for leave to appeal and appeal from a decision of the Federal Circuit and Family Court of Australia (Division 2)– where primary judge made an order for indemnity costs against first applicant and second applicant, being the first applicant’s solicitors – costs order made on grounds of unreasonable conduct pursuant to s 570(2) of the Fair Work Act 2009 (Cth) and s 191 of the Federal Circuit and Family Court of Australia Act 2021 (Cth) – where cross-claim in first instance proceeding brought vexatiously and without reasonable cause – application for leave to appeal by first applicant dismissed – where primary judge engaged in speculation contrary to the onus of proof – where error in primary judge’s reasoning relating to waiver of legal professional privilege – application for leave to appeal by second applicant and appeal each allowed Legislation: Fair Work Act 2009 (Cth) s 570
Federal Circuit and Family Court of Australia Act 2021 (Cth) ss 190, 191
Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021 (Cth) r 22.06
Cases cited: ALDI Foods Pty Ltd v Transport Workers’ Union of Australia [2020] FCAFC 231; 282 FCR 174
Colgate-Palmolive Company v Cussons Pty Ltd (1993) 46 FCR 225
Construction, Forestry, Maritime Mining, and Energy Union v Quirk [2023] FCAFC 163
Gronow v Gronow (1979) 144 CLR 513
Holloway v McFeeters (1956) 94 CLR 470
House v The King (1936) 55 CLR 499
Lemoto v Able Technical Pty Ltd [2005] NSWCA 153; 63 NSWLR 300
Mitry Lawyers v Barnden [2014] FCA 918
Re The Minister for Immigration and Ethnic Affairs of the Commonwealth of Australia; Ex parte Lai Qin (1997) 186 CLR 622
Ryan v Primesafe (No 2) [2015] FCA 8; 323 ALR 107
Sydneywide Distributors Pty Ltd v Red Bull Australia Pty Ltd [2015] FCAFC 157; 234 FCR 549
Tu’uta Katoa v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2022] HCA 28; 96 ALJR 819
Wavish v Descon Group Australia Pty Ltd [2022] FedCFamC2G 912
White Industries (Qld) v Flower & Hart (a firm) (1998) 156 ALR 169
Dal Pont GE, Law of Costs (3rd ed, LexisNexis, 2013) Division: Fair Work Division Registry: Victoria National Practice Area: Employment and Industrial Relations Number of paragraphs: 85 Date of hearing: 17 October, 2 November 2023 Counsel for the First Applicant: Mr D Freeman Solicitor for the First Applicant: Kanther Law Counsel for the Second Applicant: Mr AJH Morris KC Solicitor for the Second Applicant: Irish Bentley Lawyers Counsel for the Respondent: Ms P Ahern Solicitor for the Respondent: Hall &…
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- Case
- [2023] FCA 1494
- Decision Date
CaseChat Overview and Summary
The legal issues before the court included whether Descon's cross-claim was vexatious and without reasonable cause, justifying an indemnity costs order against Descon and its solicitors, Irish Bentley. The court also had to determine if there were any errors in the primary judge's reasoning, particularly concerning the waiver of legal professional privilege. The primary judge had made an order for indemnity costs against Descon and Irish Bentley under sections 570(2) of the Fair Work Act 2009 and 191 of the Federal Circuit and Family Court of Australia Act 2021. Descon and Irish Bentley challenged this decision, seeking leave to appeal and appealing the primary judge's ruling.
The court found that the primary judge had engaged in speculation contrary to the onus of proof and had erred in his reasoning regarding the waiver of legal professional privilege. The court dismissed Descon's application for leave to appeal and denied its appeal, but granted leave to appeal and upheld the appeal by Irish Bentley. The court's reasoning was that the primary judge had not properly considered the evidence and had made findings that were not supported by the material before the court. The court also noted that the cross-claim was vexatious and without reasonable cause, but this did not affect the outcome in relation to Irish Bentley's appeal.
The court ordered that Descon's application for leave to appeal be dismissed, while Irish Bentley's application for leave to appeal and its appeal were allowed. The matter was adjourned for further submissions on consequential orders, including those relating to costs. The case was also listed for further case management to address these orders.
Orders
Orders of the court
1. The first applicant’s amended application for leave to appeal filed on 27 July 2023 is dismissed.
2. The second applicant’s amended application for leave to appeal filed on 23 June 2023 is allowed.
3. The second applicant’s appeal is allowed.
4. The matter is adjourned for further submissions, or a hearing if necessary, in relation to all consequential orders, including as to costs.
5. The matter is listed for further case management at 10.15 am AEDT on 8 December 2023.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
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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