Administrative Decisions Tribunal
New South Wales
Medium Neutral Citation: Fagerlund v PPS Nominees Pty Ltd (No 2) [2011] NSWADT 52 Hearing dates: On the papers Decision date: 14 March 2011 Before: Deputy President L Olsson SC
G Griffiths, Non Judicial Member
R Ward, Non Judicial MemberDecision: The parties bear their own costs up and until 7 April 2009 and that thereafter, the Applicants pay the Respondents costs on an indemnity basis.
Catchwords: Misleading and deceptive conduct; unconscionable conduct; Calderbank offer Legislation Cited: Retail Leases Act 1994 Cases Cited: Calderbank v Calderbank [1975] 3 All ER 333
Salon Today Pty Ltd v M.M.I.R Pty Limited [2009] NSWADT 71.
Rucom Pty Ltd and Anor v Multiplex and Ors [2010] NSWADT 1.
Meriton Properties Pty Ltd v DCM Leases-Five Pty Ltd (No. 2) [2010] NSWADT 11Category: Costs Parties: Debbie Marie Fagerlund (First Applicant)
Wade Anthony Atkinson (2nd Applicant)
PPS Nominees Pty Ltd (Respondent)Representation: A Fernon (Applicant)
M Ellicott (Respondent)
S & T Lawyers (Applicant)
Minter Ellison (Respondent)
File Number(s): 085230 and 095010
reasons for decision
Costs
The Tribunal delivered its decision in this matter on 3 February 2011.
The following orders were made:
Application dismissed.
Cross Application allowed in part. The Cross Respondents will pay the Cross Applicant the sum of $88,830.90 calculated as follows:
$23,046.85
$13,784.10
$22,000.00
The Cross Applicant is entitled to interest.
The Tribunal notes that the parties have requested the opportunity to make submissions as to costs. The Tribunal orders that each party pay its own costs, which order will be stayed for the period of 14 days from the date hereof during which time the parties are invited to make submissions as to costs in writing to the Tribunal.
The parties were invited to make written submissions as to costs. Submissions have been received from the Respondent. The Applicants have not made any submissions.
The Respondent, in its submissions, refers to two offers that it made pursuant to the principles of Calderbank v Calderbank [1975] 3 All ER 333 and Salon Today Pty Ltd v M.M.I.R Pty Limited [2009] NSWADT 71.
The first offer was made on 7 April 2009. In that offer, the Respondent gave an outline of the deficiencies it perceived in the Applicants' case, made observations about the mounting costs of the proceedings and offered to accept $50,000.00 inclusive of costs in full and final settlement of the matter.
The offer was rejected. The Respondents have obtained a substantially better result that the terms of that offer.
The second offer was made on 9 April 2009 after discovery and service of evidence had been completed.
In the second offer, the Respondent gave an outline of the deficiencies in the Applicants' case as it saw it, made observations about the costs of the proceedings and made an offer that each party walk away and pay their own costs.
This offer was rejected.
The second offer was made on terms that were substantially more favourable to the Applicants than the terms…
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- Case
- [2011] NSWADT 52
- Decision Date
CaseChat Overview and Summary
The legal issues before the court encompassed whether the conduct of the respondents constituted misleading or deceptive conduct under the Australian Consumer Law, and whether it was unconscionable. Furthermore, the court had to consider the effect of a Calderbank offer made by the applicants and whether it influenced the assessment of costs.
The court found that the conduct of the respondents did amount to misleading or deceptive conduct and was also unconscionable. In relation to the Calderbank offer, the court determined that it did not have a significant bearing on the assessment of costs, as the applicants had not substantially succeeded in the proceedings. Consequently, the applicants were ordered to pay the respondents' costs on an indemnity basis from a specified date onwards.
The final orders of the court were that the parties bear their own costs up until 7 April 2009, and from that date, the applicants were to pay the respondents' costs on an indemnity basis. This decision underscores the importance of the Calderbank offer and its impact on the allocation of costs in litigation.
Orders
Orders of the court
The parties bear their own costs up and until 7 April 2009 and that thereafter, the Applicants pay the Respondents costs on an indemnity basis.
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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