Gang-Nail Australia Ltd v Multinail Truss Systems Pty Lyf

Case [1992] FCA 26


JUDGMENT No. .?~k .... / - . 2 . ~
IN THE FEDERAL COURT 1
OF AUSTRALIA 1
VICTORIA DISTRICT REGISTRY 1
GENERAL DIVISION
1 No. VG 305 of 1989
BETWEEN: 

GANG-NAIL AUSTRALIA LTD.

Applicant

- and -

MULTINAIL TRUSS SYSTEMS PTY. LTD.

Firstnamed Respondent

- and -
HYDRO-AIR AUSTRALIA PTY. LTD.

Secondnamed Respondent

Coram:  Olney J
Place:  Melbourne
Date :  3 February 1992

EX TEMPORE DECISION

The principles that I apply are these. First, the applicant was successful in obtaining judgment in respect of an the consequences that flow from that success in terms of infringement in respect of the PT plates and is entitled to

The question of costs was reserved at the time judgment in this matter was handed down in order to afford the parties an opportunity to consider their positions. Having now heard argument I propose to rule on the question.

having its damages, if it suffered any, appropriately determined or else an account taken. The case ran for a substantial period, mainly because there was another issue involved - namely, the question of infringement of the P and

MN plates, upon which the applicant was unsuccessful.

Nevertheless, the applicant was forced to court and at the end of the day enjoyed some success. My first conclusion is that the applicant ought to have an order for costs.

Second, it is sometimes appropriate in a case where the issues are very readily discernible and where it is possible to say that part of the case had to do with one specific issue and part had to do with another to make some adjustment to the normal order that costs follow the event so as to take account of the fact that the applicant, in respect of the unsuccessful issues, has kept the Court and the other party engaged for an unnecessarily long period of time. The appropriate way to do this is to make some order discounting the costs which would otherwise be recoverable.

expert evidence. Expert witnesses' statements were prepared In this particular case there was a considerable amount of

in advance of the trial- and the experts were called and cross-examined. That took up a very substantial part of the hearing time. It seems to me that to be fair, the cost to the applicant of obtaining the expert evidence on the general issue upon which the applicant was unsuccessful is not something that ought to be carried by the respondent, either

entirely or proportionately.

Further, having heard argument and recognising that it is a difficult issue, but nevertheless comforted by the fact that it is a matter entirely within my discretion, I have reached the conclusion that the applicant should have 75 per cent of the balance of its costs, that is its costs after excluding from the taxation the costs of the preparation of the applicant's expert witness statement. I appreciate the point that the applicant's expert witness statement also touched upon the issue on which the applicant has been successful but that was only a very minor part of the evidence. Although I have taken an arbitrary approach I believe that I have achieved a reasonably fair result. There will be an order accordingly.

I certify that this and the preceding 2 pages is a true copy of the Ex Tempore Decision of the Honourable Mr. Justice Olney

Associate: G%&- .
. -
Dated: - 1 7 4 3
Heard:  3 February 1992
Place:  Melbourne
Counsel for the applicant:  Mr. D. Shavin

I

Solicitors for the applicant:  Darvall McCutcheon
Counsel for the respondents:  Mr. B.N. Caine

I

Solicitors for the respondents:  Minter Ellison
Details
AGLC
Gang-Nail Australia Ltd v Multinail Truss Systems Pty Lyf [1992] FCA 26
Case
[1992] FCA 26
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Gang-Nail Australia Ltd (the applicant) sought a ruling on costs against Multinail Truss Systems Pty Ltd and Hydro-Air Australia Pty Ltd (the respondents) following a patent infringement case. The applicant had been successful in part of the case, specifically concerning PT plates, but unsuccessful on the MN plates. The matter was heard by Olney J in Melbourne on 3 February 1992. The court was required to determine the appropriate allocation of costs between the parties, taking into account the substantial duration of the proceedings and the partial success of the applicant.

The court found that while the applicant was entitled to costs for its partial success, it was appropriate to adjust the usual order that costs follow the event due to the complexity and length of the case. Notably, the case was prolonged by extensive expert evidence, which, while crucial, was only marginally relevant to the successful part of the case. The court ruled that the applicant should receive 75% of its costs after excluding the costs associated with the preparation of the expert witness statement. This approach was considered fair, given the disproportionate impact of the expert evidence on the unsuccessful issue.

The court's decision reflected a balance between recognising the applicant's partial success and acknowledging the undue prolongation of the case by the unsuccessful issue. The outcome was deemed equitable, ensuring that the applicant's costs for the expert evidence, which primarily related to the unsuccessful issue, were not entirely borne by the respondents. The court's ruling was grounded in discretion, aiming to achieve a just result considering the unique circumstances of the case.

The final orders of the court were that Gang-Nail Australia Ltd would receive 75% of its costs after excluding the costs associated with the preparation of the expert witness statement. This decision underscored the court's intent to fairly allocate costs while mitigating the impact of prolonged litigation on the applicant.

Orders

Orders of the court

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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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