Ecobikes Australasia Ltd v ABC Pty Ltd - [2015] QCAT 341

CITATION:	Ecobikes Australasia Ltd v ABC Pty Ltd [2015] QCAT 341
PARTIES:	Ecobikes Australasia Limited (Applicant)
v
ABC Pty Ltd (Respondent)

APPLICATION NUMBER:

RSL117-14

MATTER TYPE:

Retail shop leases matters

HEARING DATE:

On the papers

HEARD AT:

Brisbane

DECISION OF:

Senior Member Brown

DELIVERED ON:

21 August 2015

DELIVERED AT:

Brisbane

ORDERS MADE:

1. ABC Pty Ltd is to file in the Tribunal one (1) copy and give to Ecobikes Australasia Limited one (1) copy of further submissions in relation to any claim for costs including:

a. Confirmation from ABC Pty Ltd’s solicitors as to the amount of costs and outlays in invoices numbered B9304, B9727 and B9879 which relate to the Notice of Dispute and subsequent proceedings;

b. Any evidence of payment by ABC Pty Ltd of the invoices rendered by ABC Pty Ltd’s solicitors as referred to in these directions;

c. Further submissions by ABC Pty Ltd in relation to costs are to be provided to the Tribunal within 14 days;

d. In the absence of further submissions by ABC Pty Ltd in relation to costs the application for costs is dismissed.

CATCHWORDS:

COSTS – consideration of circumstances in which order for costs will be made – whether appropriate in the interests of justice to make costs order – assessing reasonableness of costs

Legal Profession Act 2007 (Qld), s 330
Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 100, s 102, s 107

Ecobikes Australasia Limited v ABC Pty Ltd [2014] QCAT 679
McEwen v Barker Builders Pty Ltd [2010] QCATA 49
Ralacom Pty Ltd v Body Corporate for Paradise Island Apartments (No 2) [2010] QCAT 412

APPEARANCES:

This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act).

REASONS FOR DECISION

WHAT IS THIS APPLICATION ABOUT?

Ecobikes Australasia Limited (‘Ecobikes’) leased premises in Surfers Paradise from ABC Pty Ltd (‘ABC’). A dispute arose in relation to the renewal of the lease as a result of which a Notice of Dispute was filed by Ecobikes in the Tribunal. On 9 June 2015, the Notice of Dispute was struck out as a result of the failure by Ecobikes to comply with directions made by the Tribunal. ABC seeks its costs of the proceedings. The issue for determination by the Tribunal is whether ABC should be entitled to recover its costs from Ecobikes.

BACKGROUND

The initial term of the lease between ABC and Ecobikes expired on 25 August 2014. It was accepted by both Ecobikes and ABC that the option to renew was not exercised within the period required by the lease.
Ecobikes subsequently sought to exercise the option to renew. ABC refused and sought delivery up of possession of the leased premises.
Ecobikes filed in the Tribunal a Notice of Dispute and an application seeking directions that the matter be determined by the Tribunal on an urgent basis. Ecobikes also sought a declaration, although it was not expressed in these terms, that the…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2015] QCAT 341
Decision Date: 21 August 2015

CaseChat Overview and Summary

The case before the Tribunal involved a dispute between Ecobikes Australasia Ltd and ABC Pty Ltd. The primary issue in the case was the determination of costs, specifically whether it was appropriate to make an order for costs in the interests of justice and to assess the reasonableness of the costs claimed. This involved a detailed examination of the invoices submitted by ABC Pty Ltd’s solicitors, which related to the Notice of Dispute and subsequent proceedings.

The legal issues before the Tribunal centred on the principles governing the awarding of costs in Australian litigation. The Tribunal was required to consider whether it was just and equitable to order ABC Pty Ltd to pay the costs claimed by Ecobikes Australasia Ltd, and if so, to determine the reasonableness of those costs. This included assessing the necessity and proportionality of the costs incurred by ABC Pty Ltd in relation to the proceedings.

The Tribunal noted that in deciding whether to make a costs order, it must consider the circumstances of the case, including the conduct of the parties, the outcome achieved, and the overall fairness of the costs claimed. The Tribunal emphasised the importance of transparency and substantiation in the costs claimed. In this case, the Tribunal found that ABC Pty Ltd had not sufficiently substantiated the costs claimed in the invoices numbered B9304, B9727, and B9879. Consequently, the Tribunal ordered ABC Pty Ltd to provide confirmation from their solicitors regarding the amount of these costs and any evidence of payment. The Tribunal also directed that any further submissions on costs be provided within 14 days; otherwise, the application for costs would be dismissed.

The Tribunal's orders included a requirement for ABC Pty Ltd to submit detailed information regarding the costs claimed, evidence of payment, and any additional submissions within a specified timeframe. This was to ensure that the Tribunal could make an informed decision on the reasonableness and appropriateness of the costs. The Tribunal emphasised that the onus was on ABC Pty Ltd to demonstrate the necessity and proportionality of the costs claimed.

Orders

Orders of the court

1. ABC Pty Ltd is to file in the Tribunal one (1) copy and give to Ecobikes Australasia Limited one (1) copy of further submissions in relation to any claim for costs including:

a. Confirmation from ABC Pty Ltd’s solicitors as to the amount of costs and outlays in invoices numbered B9304, B9727 and B9879 which relate to the Notice of Dispute and subsequent proceedings;

b. Any evidence of payment by ABC Pty Ltd of the invoices rendered by ABC Pty Ltd’s solicitors as referred to in these directions;

c. Further submissions by ABC Pty Ltd in relation to costs are to be provided to the Tribunal within 14 days;

d. In the absence of further submissions by ABC Pty Ltd in relation to costs the application for costs is dismissed.

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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