Generate Group Pty Ltd v Harris (Costs)

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FEDERAL COURT OF AUSTRALIA

Generate Group Pty Ltd v Harris (Costs) [2023] FCA 1358  

File numbers: NSD 1124 of 2022
NSD 196 of 2023
Judgment of: STEWART J
Date of judgment: 3 November 2023
Catchwords: COSTS – where costs orders made in party’s favour – where that party seeks additional costs orders – application for non-party to pay another non-party’s costs in related proceeding – application for costs to be paid forthwith – whether good cause shown to depart from ordinary principles
Legislation:

Federal Court of Australia Act 1976 (Cth) s 43

Federal Court Rules 2011 (Cth) r 40.13
Cases cited:

Aspirio Pty Ltd (in liquidation) [2022] NSWSC 579

Karpik v Carnival plc [2021] FCA 1290

Northern Territory v Sangare [2019] HCA 25; 265 CLR 164

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

Re Pan Pharmaceuticals Ltd; Selim v McGrath [2004] NSWSC 129; 48 ACSR 681

Wilson v Britten-Jones (No 3) [2021] FCA 63
Division: General Division
Registry: New South Wales
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Number of paragraphs: 23
Date of last submission: 13 October 2023
Date of hearing: Determined on the papers
Counsel for the Plaintiff in NSD1124/2022: B Lloyd
Solicitor for the Plaintiff in NSD1124/2022: Swaab Attorneys
Counsel for the First, Second and Fifth Defendants in NSD1124/2022: N Kabilafkas
Solicitor for the First, Second and Fifth Defendants in NSD1124/2022: Wilson & Co Lawyers
Counsel for the Third, Fourth and Sixth Defendants in NSD1124/2022: S Docker SC
Solicitor for the Third, Fourth and Sixth Defendants in NSD1124/2022: Thomson Geer

ORDERS

NSD 1124 of 2022
BETWEEN:

GENERATE GROUP PTY LTD ACN 702 667 228

Plaintiff
AND:

GREGORY JOHN HARRIS

First Defendant

MARK ANDREW GRIFFITHS

Second Defendant

SINT PTY LTD ACN 135 128 237 (and others named in the Schedule)

Third Defendant

ORDER MADE BY:

STEWART J

DATE OF ORDER:

3 NOVEMBER 2023

THE COURT ORDERS THAT:

1.The plaintiff’s application for a lump sum costs order payable forthwith be dismissed, with costs.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

ORDERS

NSD 196 of 2023
BETWEEN:

MALI AGNES KAINONA THAGGARD IN HER CAPACITY AS LIQUIDATOR OF SEA-TECH AUTOMATION PTY LTD (IN LIQUIDATION) ACN 003 916 434

First Plaintiff

SEA-TECH AUTOMATION PTY LTD (IN LIQUIDATION) ACN 003 916 434

Second Plaintiff
AND:

GREGORY JOHN HARRIS

First Interested Person

MARK ANDREW GRIFFITHS

Second Interested Person

SEA-TECH SYSTEMS PTY LTD ACN 614 267 140 (and others named in the Schedule)

Third Interested Person

ORDER MADE BY:

STEWART J

DATE OF ORDER:

3 NOVEMBER 2023

THE COURT ORDERS THAT:

1.Generate Group Pty Ltd’s application for costs against the interested persons be dismissed with costs.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

STEWART J:

  1. On 8 June 2023, I delivered reasons in each of these proceedings determining various applications before me. The costs of those applications were initially reserved. Thereafter…

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Details
Case
[2023] FCA 1358
Decision Date

CaseChat Overview and Summary

Generate Group Pty Ltd, as the applicant, brought a case against Harris, the respondent, before the Federal Court. The dispute centred around the costs incurred during the litigation and the subsequent application by the applicant for additional costs against certain interested parties. This case involved an application for non-parties to bear the costs of another non-party in a related proceeding, as well as a request for these costs to be paid immediately. The crux of the matter was whether there was sufficient cause to deviate from the standard principles governing costs orders.

The court had to determine whether the applicant demonstrated a compelling reason to depart from the ordinary principles of costs orders. This included evaluating the application by non-parties to pay another non-party’s costs in a related proceeding and the applicant's request for these costs to be paid forthwith. The primary legal issue was whether the circumstances justified an immediate and exceptional departure from the established norms of cost distribution in litigation.

In ruling on these applications, the court found that the applicant had not provided sufficient cause to warrant a departure from the standard principles of costs orders. The court emphasised that such deviations should only be made in exceptional circumstances and noted that the applicant had not demonstrated good cause for immediate payment of costs to non-parties in a related proceeding. Consequently, the application for costs against the interested persons was dismissed, with the applicant also ordered to pay the costs of the application.

Orders

Orders of the court

1. Generate Group Pty Ltd’s application for costs against the interested persons be dismissed with costs.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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