Findex Group Pty Ltd v McKay (No 2)

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SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

COURT OF APPEAL

Case Title:

Findex Group Pty Ltd v McKay (No 2)

Citation: 

[2023] ACTCA 43

Hearing Date: 

Decided on the papers

Decision Date: 

29 November 2023

Before:

Mossop, McWilliam and Taylor JJ

Decision: 

1.   Order 8 made on 22 September 2023 is discharged.

2.   The costs the subject of order 7 made on 22 September 2023 are not to be assessed until the proceedings in the Supreme Court end.

3. In any assessment of the costs the subject of order 7 made on 22 September 2023, the registrar is directed, pursuant to r 1754(2) of the Court Procedures Rules 2006 (ACT), to consider the draft Notice of Appeal, amended draft Notice of Appeal and Notice of Appeal and completely or partly disallow the costs of those documents if the registrar considers that the documents or any of them are unnecessarily lengthy or otherwise within the scope of r 1754(2)(b).

Catchwords: 

COSTS – Whether costs should be withheld from successful party – whether award of solicitor/client or indemnity costs should be awarded to successful party – excessively long Notice of Appeal – party/party costs awarded – costs to be assessed following finalisation of first instance proceedings

Legislation Cited: 

Court Procedures Rules 2006 (ACT), rr 1701(2), 1705, 1721, 1726, 1754(2), 5001, Pt 2.17

Cases Cited: 

Clarkson Williams Partners Pty Ltd v Vaughan (No 2) [2016] ACTCA 8

Kone Elevators Pty Ltd v Shipton [2021] ACTCA 33

Findex Group Pty Ltd v McKay [2023] ACTCA 36

Latoudis v Casey (1990) 170 CLR 534

Oshlack v Richmond River Council [1998] HCA 11; 193 CLR 72

Parties: 

Findex Group Ltd ( First Appellant)

Findex Services Pty Ltd (Second Appellant)

Financial Index Australia Pty Ltd (Third Appellant)

Spiro Paule (Fourth Appellant)

Danielle Bartholomeusz nee Ludbey (Fifth Appellant)

Phillip Hart (Sixth Appellant)

David McKay ( Respondent)

Representation: 

Counsel

M A Friedgut ( Appellants)

B Webster ( Respondent)

Solicitors

Harmers Workplace Lawyers ( Appellants)

Just Dispute Resolution ( Respondent)

File Number:

ACTCA 19 of 2023

Decision Under Appeal: 

Court: Supreme Court of the ACT

Before: McCallum CJ

Date of Decision: 12 May 2023

Case Title: Findex Group Limited v McKay (No 3)

Citation: [2023] ACTSC 108

THE COURT:

Introduction

  1. On 22 September 2023 the Court of Appeal allowed an appeal against interlocutory orders made by a judge of the Supreme Court: Findex Group Pty Ltd v McKay [2023] ACTCA 36. The matter was remitted to the Supreme Court to be determined according to law. An order was made that the respondent (Mr McKay) pay the appellants’ (Findex) costs of the application for leave to appeal, appeal and notice of contention. That order was made subject to the entitlement of either party to seek different costs orders within seven days. Mr McKay sought a different costs order.

  2. The orders sought by Mr McKay were that he pay only 60 percent of Findex’s costs, that Findex bear its own costs of the amendment to the draft Notice of Appeal…

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Details
Case
[2023] ACTCA 43
Decision Date

CaseChat Overview and Summary

Findex Group Pty Ltd (the appellant) appealed a decision of the Supreme Court of the Australian Capital Territory. The dispute concerned the assessment of costs following earlier proceedings. The appeal was heard by Mossop, McWilliam and Taylor JJ of the Supreme Court of the Australian Capital Territory.

The primary legal issue before the Court was whether costs should be withheld from the successful party, and whether solicitor-client or indemnity costs should be awarded. Specifically, the Court considered whether the length of the Notice of Appeal warranted a departure from the usual order for party-party costs.

The Court reasoned that while the appellant was the successful party in relation to the costs order under appeal, the excessive length of the Notice of Appeal was a relevant factor in the assessment of costs. The Court noted that the registrar had the discretion to disallow costs associated with unnecessarily lengthy documents. Accordingly, the Court ordered that the costs the subject of the earlier order were not to be assessed until the conclusion of the first instance proceedings. The registrar was directed to consider the draft and final Notices of Appeal and to disallow costs if they were found to be unnecessarily lengthy, pursuant to rule 1754(2) of the Court Procedures Rules 2006 (ACT).

Orders

Orders of the court

1. Order 8 made on 22 September 2023 is discharged.

2. The costs the subject of order 7 made on 22 September 2023 are not to be assessed until the proceedings in the Supreme Court end.

3. In any assessment of the costs the subject of order 7 made on 22 September 2023, the registrar is directed, pursuant to r 1754(2) of the Court Procedures Rules 2006 (ACT), to consider the draft Notice of Appeal, amended draft Notice of Appeal and Notice of Appeal and completely or partly disallow the costs of those documents if the registrar considers that the documents or any of them are unnecessarily lengthy or otherwise within the scope of r 1754(2)(b).

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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