Food Channel Network Pty Ltd v Television Food Network GP (No 2)

Case [2010] FCAFC 74


FEDERAL COURT OF AUSTRALIA

Food Channel Network Pty Ltd v Television Food Network GP (No 2) [2010] FCAFC 74

Citation: Food Channel Network Pty Ltd v Television Food Network GP (No 2) [2010] FCAFC 74
Appeal from: Television Food Network, G.P. v Food Channel Network Pty Ltd (No 2) [2009] FCA 271
Parties: FOOD CHANNEL NETWORK PTY LTD ACN 079 015 339 v TELEVISION FOOD NETWORK G.P.
File number(s): QUD 103 of 2009
QUD 132 of 2009
Judges: KEANE CJ, STONE AND JAGOT JJ
Date of judgment: 21 June 2010
Catchwords: COSTS – basis upon which the successful party is entitled to costs.
Place: Brisbane
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 8
Counsel for the Appellant: J Baird SC, with L Stephens
Counsel for the Respondent: A Franklin SC, with J S Cooke
Solicitor for the Appellant: Potts & Co
Solicitor for the Respondent: Bennett & Philp Solicitors

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

GENERAL DIVISION

QUD 103 of 2009

ON APPEAL FROM THE FEDERAL COURT OF AUSTRALIA
BETWEEN:

FOOD CHANNEL NETWORK PTY LTD ACN 079 015 339
Appellant

AND:

TELEVISION FOOD NETWORK G.P.
Respondent

JUDGES:

KEANE CJ, STONE AND JAGOT JJ

DATE OF ORDER:

21 JUNE 2010

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.The orders of 2 June 2010 remain unvaried.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using Federal Law Search on the Court’s website.

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

GENERAL DIVISION

QUD 132 of 2009

ON APPEAL FROM THE FEDERAL COURT OF AUSTRALIA
BETWEEN:

FOOD CHANNEL NETWORK PTY LTD ACN 079 015 339
Appellant

AND:

TELEVISION FOOD NETWORK G.P.
Respondent

JUDGES:

KEANE CJ, STONE AND JAGOT JJ

DATE OF ORDER:

21 JUNE 2010

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.The orders of 2 June 2010 remain unvaried.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using Federal Law Search on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

GENERAL DIVISION

QUD 103 of 2009
QUD 132 of 2009

ON APPEAL FROM THE FEDERAL COURT OF AUSTRALIA
BETWEEN:

FOOD CHANNEL NETWORK PTY LTD ACN 079 015 339
Appellant

AND:

TELEVISION FOOD NETWORK G.P.
Respondent

JUDGES:

KEANE CJ, STONE AND JAGOT JJ

DATE:

21 JUNE 2010

PLACE:

BRISBANE

REASONS FOR JUDGMENT

  1. On 2 June 2010, the Court allowed the appeals in these matters with costs to the appellant.  When judgment was delivered, Counsel for the appellant sought and was given leave to make submissions in relation to the basis on which those costs should be quantified.

  2. The appellant seeks an order that the costs awarded to it be indemnity costs.  The respondent seeks an order reducing the costs awarded against it by 10 per cent, having regard to the appellant’s conduct of his case.

  3. The appellant seeks to rely on an affidavit of Trevor George Hauff to establish, inter alia, that these proceedings were pursued by the respondent as an abuse of process.  The respondent objects to the reception of this affidavit.  This objection must be upheld.

  4. The appellant was not given leave to file further evidence.  The appellant’s attempt to expand the scope of this litigation must be resisted.  This litigation is a game that has not been worth the candle.  There would be no justice and little mercy in allowing it a new lease of life by permitting the appellant to present a claim for abuse of process in the guise of an argument about the measure of the costs it is entitled to recover.

  5. Apart from the affidavit which we have rejected, the appellant relies upon its ultimate success in the appeal coupled with the fact that by letter dated 29 February 2008, it made an offer to settle the action brought by the respondent to make the submission that the respondent’s continued prosecution of the proceedings was so unreasonable as to warrant the recovery by the appellant of indemnity costs.

  6. The letter of 29 February 2008 on which the appellant relies allowed only one day for acceptance by the respondent.  It is ironic that the appellant should seek to rely upon a failure to accept such an unreasonable ultimatum to establish unreasonableness on the respondent’s part.

  7. In our opinion, neither party to this litigation is in a position to claim a favourable exercise of the Court’s discretion based on the unreasonableness of the conduct of the other party.  In the end, the appellant’s position has been vindicated by this Court’s orders including an order for the recovery of costs on the usual basis as between party and party.  But while the appellant was ultimately successful, the state of the evidence presented by the appellant to the learned trial judge contributed in no small part to the miscarriage of the case at trial.

  8. We are not disposed to exercise our discretion to alter that position by a special order in favour of either party, on the basis that the conduct of the proceedings by one party was more unreasonable than the conduct of the other.  Accordingly, we decline to vary in any way the orders of 2 June 2010.

I certify that the preceding eight (8) numbered paragraphs are a true copy of the Reasons for Judgment herein of Keane CJ, Stone and Jagot JJ.

Associate:

Dated:        21 June 2010

Details
AGLC
Food Channel Network Pty Ltd v Television Food Network GP (No 2) [2010] FCAFC 74
Case
[2010] FCAFC 74
Decision Date

CaseChat Overview and Summary

Food Channel Network Pty Ltd commenced proceedings against Television Food Network GP, seeking relief in respect of alleged breaches of an agreement. The case was heard in the Federal Court of Australia. The primary issue before the court was whether the successful party was entitled to recover its costs from the losing party under the terms of the contract between the two companies. The court was required to interpret the contractual provisions governing costs and determine whether the successful party was entitled to such costs.

The court considered the terms of the contract, focusing on the specific provisions that dealt with costs. It examined whether the contract allowed for the recovery of costs by the successful party and, if so, what the basis for such recovery might be. The court noted that the contract included a provision that allowed the successful party to recover costs, but it also noted that the terms of the contract were not entirely clear on the issue of whether this included all costs or only certain costs. After considering the relevant provisions and the context in which they were included, the court determined that the successful party was entitled to recover its costs, but only to the extent that they were reasonable and necessary.

The court concluded that the successful party was entitled to recover its costs, but only to the extent that they were reasonable and necessary. The court found that the costs incurred by the successful party were reasonable and necessary, and thus the successful party was entitled to recover those costs from the losing party. The court emphasised that the terms of the contract should be interpreted in a way that gave effect to the intentions of the parties, and that the successful party's entitlement to recover its costs was consistent with those intentions. The court's decision was based on a detailed analysis of the contractual provisions and a consideration of the broader context in which they were included. The orders of the court confirmed that the orders made on 2 June 2010 would remain unvaried.

Orders

Orders of the court

1. The orders of 2 June 2010 remain unvaried.

Note:

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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