Du Maurier v Wechsler No 3

Case [2012] NSWSC 372


Supreme Court

New South Wales

Case Title: Du Maurier v Wechsler No 3
Medium Neutral Citation: [2012] NSWSC 372
Hearing Date(s): Not applicable
Decision Date: 20 April 2012
Jurisdiction: Equity Division
Before:

Associate Justice Macready

Decision:

I order that each party bear his and her own costs and, in the case of the plaintiff, without recourse to the estate of the deceased.

Catchwords:
Legislation Cited:
Cases Cited:
Texts Cited:
Category: Costs
Parties:

Michael Du Maurier (plaintiff)
Katie Wechsler (defendant)

Representation
- Counsel:

Mr L Ellison SC (plaintiff)
Mr D Smallbone (defendant)

- Solicitors:

Gadens Lawyers (plaintiff)
Hunt & Hunt (defendant)

File number(s):

2011/266500

Publication Restriction:

JUDGMENT ON COSTS

  1. It is necessary to address the costs' orders which should follow from the two judgments which I have delivered in this matter. On 1 March 2012 I delivered a judgment on the defendant's application for provision of material to the defendant so that the defendant could address the application for judicial advice. That was reported at [2012] NSWSC 138. As a result of that application I ordered that one document should be produced but otherwise I dismissed the substance of the defendant's claim.

  1. My final judgment refusing the plaintiff's application for judicial advice was delivered on 20 March 2012 and is reported at [2012] NSWSC 240.

  1. The plaintiff seeks an order that the plaintiff's costs on the indemnity basis be paid out of the estate of the deceased with no order as to the costs of the defendant with the intention that she bears her own costs. In the alternative the plaintiff seeks an order that each party bear their own costs and, in the case of the plaintiff, without recourse to the estate of the deceased.

  1. The defendant seeks that the plaintiff pay the defendant's costs of the proceedings and that the plaintiff not be entitled to indemnity from the assets of the Estate of the late Gisela Fiala the deceased.

  1. Normally costs follow the event and in this case on the application for the supply of documents the plaintiff was substantially successful. In respect of the application for advice the plaintiff's application was dismissed.

  1. Under Uniform Civil Procedure Rules Part 42 Rule 42.25 the following provision appears.

"(1) Subject to subrule (2), a person who is or has been a party to any proceedings in the capacity of trustee or mortgagee is entitled to be paid his or her costs in the proceedings, in so far as they are not paid by any other person, out of the fund held by the trustee or out of the mortgaged property, as the case maybe.

(2) The court may order that the person's costs not be so paid if:

(a)the trustee or mortgagee has acted unreasonably, or

(b)in the case of a trustee, the trustee has in substance acted for his or her own benefit rather than for the benefit of the fund."

  1. There is no suggestion that the plaintiff acted unreasonably in making the application and in a sense he has acted for his own benefit in that he wished to be protected for costs at an early stage. However, this is not a case where the plaintiff is a beneficiary of the deceased's estate and he will have to fund his own costs. As is apparent from the judgments the beneficiaries are the defendant to the proceedings and the plaintiff's wife.

  1. I note that the arguments on the interlocutory application, which was substantially won by the plaintiff, took about the same amount of time as the arguments on the hearing for judicial advice.

  1. In the circumstances I think the appropriate order is that there be no order as to the costs of the parties with the intent that each party bear his and her own costs and, in the case of the plaintiff, without recourse to the estate of the deceased and I so order.

**********

Details
AGLC
Du Maurier v Wechsler No 3 [2012] NSWSC 372
Case
[2012] NSWSC 372
Decision Date

CaseChat Overview and Summary

This matter involved a legal dispute between Michael Du Maurier, the plaintiff, and Katie Wechsler, the defendant, in the Supreme Court of New South Wales, Equity Division. The dispute centered on the costs incurred during the proceedings, specifically regarding whether these costs should be borne by the parties themselves or covered by the estate of the deceased, Gisela Fiala. The plaintiff sought an order that his costs be paid from the deceased's estate, while the defendant argued that the plaintiff should bear his own costs. The court had to determine the appropriate allocation of costs under the Uniform Civil Procedure Rules.

The court was required to decide whether the plaintiff's costs should be paid out of the deceased's estate or if each party should bear their own costs. The plaintiff argued for an indemnity order based on his role as a trustee, but the court noted that the plaintiff was not a beneficiary of the estate. The defendant contended that the plaintiff should bear his own costs, and the court considered the time spent on arguments in both the interlocutory application and the main hearing. The court had to balance the plaintiff's need for early protection against costs with the principle that costs generally follow the event.

The court decided that the appropriate order was for each party to bear their own costs, with the plaintiff not having recourse to the estate of the deceased. The court reasoned that while the plaintiff was substantially successful in an interlocutory application, his main application for judicial advice was dismissed. The court found no unreasonable conduct by the plaintiff but also noted that he was not a beneficiary of the deceased's estate. Consequently, the court ordered that each party bear their own costs, with the plaintiff not having recourse to the estate of the deceased.

The final order of the court was that each party bear their own costs, and in the case of the plaintiff, without recourse to the estate of the deceased. This decision reflects the court's consideration of the plaintiff's partial success, the time spent on arguments, and the absence of unreasonable conduct or benefit to the plaintiff from his role as a trustee.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.