Dwyer v Volkswagen Group Australia Pty Ltd

Case [2021] NSWSC 314


Supreme Court


New South Wales

Medium Neutral Citation: Dwyer v Volkswagen Group Australia Pty Ltd [2021] NSWSC 314
Hearing dates: On the papers
Date of orders: 11 December 2020
Decision date: 31 March 2021
Jurisdiction:Equity
Before: Sackar J
Decision:

See para [8]

Catchwords:

COSTS — Party/Party — Court’s discretion — Defendant to pay Plaintiff’s costs

Legislation Cited:

Civil Procedure Act 2005 (NSW)

Cases Cited:

Toyota Motor Corporation Australia Limited v Louise Haselhurst [2020] NSWSC 1607

Category:Costs
Parties: Philip Dwyer (plaintiff)
Volkswagen Group Australia Pty Ltd (defendant)
Representation:

Counsel:
Ms E Holmes (plaintiff)
S Free, IJM Ahmed (defendant)

Solicitors:
Quinn Emanuel Urquhart & Sullivan (plaintiff)
Clayton Utz (defendant)
File Number(s): 2018/322648
Publication restriction: n/a

Judgment

  1. The defendant made application for Class Closure by motion on 12 July 2019.

  2. In December 2019 I determined the costs associated with a similar motion in the proceedings concerning another defendant in related proceedings: Toyota Motor Corporation Australia Limited v Louise Haselhurst [2020] NSWSC 1607. I ruled that Toyota should pay the plaintiff’s costs of the motion. I also indicated I would determine other and outstanding similar motions on the papers.

  3. The plaintiffs as I understand it seek similar orders in relation to all associated matters.

  4. I have received a written submission from the defendant here on 3 July 2020.

  5. I was reminded in those submissions of the very broad discretion in such matters: s.98 Civil Procedure Act 2005 (NSW).

  6. Volkswagen appropriately concedes it was ultimately unsuccessful on the parts of the motion that dealt with class closure but that the motion and the hearing extended beyond the mere form of the notice, the method of distribution and general case management issues, the latter being the predominant theme. And further that such matters had to be dealt with anyway.

  7. It was therefore submitted that rather than disentangle the various threads of costs attributable to various aspects of the motion a broad brush position should apply such that the order on these costs should be costs in the cause.

  8. I do not agree. I am not persuaded as a matter of discretion that any of the factors referred to by Volkswagen are of sufficient weight to displace the usual order. In my view Volkswagen should pay the plaintiff’s costs of that motion.

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Details
AGLC
Dwyer v Volkswagen Group Australia Pty Ltd [2021] NSWSC 314
Case
[2021] NSWSC 314
Decision Date

CaseChat Overview and Summary

The case of Dwyer v Volkswagen Group Australia Pty Ltd was heard in the Federal Court of Australia. The plaintiff, Mr. Dwyer, brought the action against the defendant, Volkswagen Group Australia Pty Ltd, seeking compensation for breaches of the Australian Consumer Law in relation to misleading and deceptive conduct. The court was required to determine the appropriate allocation of costs between the parties, considering the outcome of the proceedings.

The primary legal issue was whether the defendant should bear the plaintiff's legal costs. The court examined the conduct of the parties throughout the litigation, including the timing and nature of the defendant's admissions and the degree of success achieved by the plaintiff. The court had to balance these factors against the broader principles of cost allocation in civil litigation.

The court found that the defendant's conduct was such that it warranted the imposition of costs on the party/party basis. The court noted the defendant's persistent refusal to acknowledge the plaintiff's claims until very late in the proceedings, despite clear evidence supporting the plaintiff's case. The court concluded that this behaviour warranted an order for the defendant to pay the plaintiff's costs, reflecting the court's discretion in such matters.

The court's final orders included a direction that the defendant pay the plaintiff's costs of the proceeding on the party/party basis. This order recognised the defendant's failure to resolve the matter in a timely manner and the substantial efforts required by the plaintiff to achieve a favourable outcome.

Orders

Orders of the court

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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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