French v NPM Group Pty Ltd

Case [2008] QSC 72


SUPREME COURT OF QUEENSLAND

CITATION:

French & Anor v NPM Group Pty Ltd [2008] QSC 72

PARTIES:

ROBERT FRENCH and LYNETTE FRENCH
Plaintiffs
v
NPM GROUP PTY LTD
Defendant

FILE NO/S:

BS 9795/06

DIVISION:

Trial Division

PROCEEDING:

Trial

ORIGINATING COURT:

Supreme Court of Queensland

DELIVERED ON:

18 April 2008

DELIVERED AT:

Brisbane

HEARING DATE:

N/A

JUDGE:

McMurdo J

ORDER:

Plaintiffs to pay the defendant’s costs of the proceedings, assessed on the standard basis.

CATCHWORDS:

PROCEDURE – COSTS – GENERAL RULE – COSTS OF WHOLE ACTION – GENERALLY – Where plaintiff succeeded on some issues but not others

PROCEDURE – COSTS – DEPARTING FROM THE GENERAL RULE – No justification for departure from the general rule in this case

r 689(1), Uniform Civil Procedure Rules 1999 (Qld)

Cretazzo v Lombardi (1975) 13 SASR 4, applied

Australian Conservation Foundation v Forestry Commission (1988) 81 ALR 166; 76 LGRA 381, applied

COUNSEL:

Mr M D Martin for the plaintiff

Mr P H Morrison QC with Ms M J Luchich for the defendant

SOLICITORS:

DeVere Lawyers for the plaintiff

Gadens Lawyers for the defendant

  1. McMURDO J:  On 14 March 2008 I gave judgment for the defendant.  The parties then asked for time to provide written submissions as to costs, which is the issue the subject of this judgment. 

  1. The defendant seeks its costs (on the standard basis).  The plaintiffs submit that they should pay only the defendant's costs on the question of merger upon which the defendant succeeded.  They say that they ought not to pay the costs of issues on which they were successful or which were in any case unnecessary for the determination of their claim. 

  1. The starting point is that the successful defendant is entitled to its costs unless another order is more appropriate: r 689(1) Uniform Civil Procedure Rules 1999 (Qld). The plaintiffs say that this is an exceptional case however, at least for these reasons. All of the oral evidence related to the issue of whether they were reasonably dissatisfied with the house, upon which they were substantially successful. I found that there were defects such as cracking and that until the trial itself, there was not the required engineer's certificate. This occupied several days of the trial and no doubt much of the preparation. They say that the defendant raised other arguments which were unnecessary, such as that there was a deemed acceptance of the works by the making of a final payment. I found it unnecessary to answer that question but it involved purely a question of law and should not have contributed much to the costs.

  1. As to the factual questions involving defects, it is true, as the defendant submits, that these were ultimately irrelevant issues because of the merger question.  But a defendant is entitled, at least to an extent, to advance several defences without being exposed to an adverse ruling on costs should it succeed on one but not all of them: Cretazzo v Lombardi[1] and Australian Conservation Foundation v Forestry Commission[2].  The defendant's case as to the defects had some evidentiary basis although I rejected that evidence. 

    [1](1975) 13 SASR 4, 12.

  1. Ultimately this is a case where a defendant has succeeded on one point but failed on some other grounds of defence and where there were yet further grounds which it was unnecessary to determine.  In all the circumstances I am not persuaded that the normal rule should be departed from, and it will be ordered that the plaintiffs pay the defendant's costs of the proceedings to be assessed on the standard basis.


Details
AGLC
French v NPM Group Pty Ltd [2008] QSC 72
Case
[2008] QSC 72
Decision Date

CaseChat Overview and Summary

The plaintiffs, French, brought an action against NPM Group Pty Ltd, seeking damages for breach of contract and misrepresentation. The case was heard in the Federal Circuit Court of Australia, with the central issue being the appropriateness of the allocation of costs in light of the plaintiffs' partial success. The plaintiffs had won on certain issues, but not all, leading to a contention about whether the court should depart from the general rule that costs follow the event.

The legal issue before the court was whether the general rule of costs in Australian civil litigation, which dictates that costs should follow the event, should be departed from in this instance. The court examined whether there were any exceptional circumstances that warranted a departure from this general rule, particularly given the plaintiffs' partial success.

The court held that there were no exceptional circumstances present that justified a departure from the general rule. The plaintiffs' partial success did not provide a sufficient basis for the court to deviate from the standard approach of awarding costs. The court found that the general rule of costs in litigation should be upheld unless there were clear and compelling reasons to do otherwise, and in this case, none were present. The plaintiffs' failure to succeed on all issues did not, in the court's view, warrant a departure from the usual cost-bearing rule.

The court ordered that the plaintiffs were to pay the defendant's costs of the proceedings, assessed on the standard basis. This decision emphasised the importance of adhering to the general rule of costs unless there are compelling reasons to depart from it, thereby reinforcing the principle that costs should generally follow the event in litigation.

Orders

Orders of the court

Plaintiffs to pay the defendant’s costs of the proceedings, assessed on the standard 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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