CITATION: GIO v Nathan FOSSE (by his next friend Earl Patrick FOSSE) [1999] NSWCA 356 FILE NUMBER(S): CA 40428/99 HEARING DATE(S): 24 September 1999 JUDGMENT DATE:
24 September 1999PARTIES :
Government Insurance Office (Claimant)
Nathan FOSSE (by his next friend Earl Patrick FOSSE) (Opponent)JUDGMENT OF: Handley JA at 1; Beazley JA at 11; Stein JA at 2
LOWER COURT JURISDICTION: Supreme Court - Common Law Division LOWER COURT FILE NUMBER(S) : CL 23299/86 LOWER COURT JUDICIAL OFFICER: Master Harrison
COUNSEL: R.C. Tonner (Claimant)
K.P. Rewell/M. Sneddon (Opponent)SOLICITORS: Bartier Perry (Claimant)
Baker & Edwards (Opponent)CATCHWORDS: INDEMNITY COSTS ACTS CITED: SCR Part 52A Rule 22 CASES CITED: n/a DECISION: See para 7 for orders
IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEALCA 40428/99
HANDLEY JA
BEAZLEY JA
STEIN JA
Friday, 24 September 1999
GOVERNMENT INSURANCE OFFICE OF NEW SOUTH WALES v Nathan FOSSE (by his next friend Earl Patrick FOSSE)
JUDGMENT1 HANDLEY JA: I will ask Stein JA to give the first judgment.
2 STEIN JA: This is an application for leave to appeal and, if granted, it is agreed that the appeal may proceed. 3 The claimant, the defendant in the proceedings, made an offer of compromise of $2,325,000 plus costs. This offer was accepted by the opponent, the plaintiff in the proceedings, on 3 September 1998. There was then a binding agreement between the parties, subject to the approval of the Court since the plaintiff was a disabled person.4 "Plus costs" has a settled meaning in practice. The phrase is one which is commonly used and it means costs to the date of settlement on a party and party basis.
5 After the offer was accepted by the plaintiff, it was approved by the Court. This was a judgment of the Court which covered both damages and costs.
6 The question raised before us is whether the acceptance of the offer and subsequent approval by the Court and judgment, precluded the application of Part 52A Rule 22 of the Supreme Court Rules concerning indemnity costs. In my opinion, the acceptance of the offer and the subsequent approval by the Court and judgment precluded the application of Part 52A Rule 22. In my view, the master was wrong to conclude otherwise. 7 I would propose that the following orders be made:8 I would ask that Mr Tonner on behalf of the claimant give an undertaking to file the notice of appeal in the form which appears in the white book. 9 TONNER: Yes, that undertaking is given, your Honour. 10 HANDLEY JA: I agree. 11 BEAZLEY JA: I agree.
1. Leave to appeal be granted and the appeal be upheld with costs.
2. That the order made by the Master that the claimant pay the opponent's costs on an indemnity basis as from 30 July 1997 and the costs of the motion dated 20 January 1999 on a party and party basis be set aside.
3. Respondent to have a certificate under the Suitors’ Fund Act 1951 if qualified.
12 HANDLEY JA: The orders of the Court, made on the basis of the undertaking given by Mr Tonner on behalf of the claimant, now appellant, will be as announced by Stein JA.
oOo
- AGLC
- GIO v Nathan FOSSE (by his next friend Earl Patrick FOSSE) [1999] NSWCA 356
- Case
- [1999] NSWCA 356
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Court of Appeal was whether the primary judge had erred in ordering indemnity costs against GIO. Specifically, the court had to consider whether GIO's conduct in the litigation warranted such an order, which is typically reserved for cases where a party has acted vexatiously, oppressively, or unreasonably.
The Court of Appeal found that the primary judge had not erred in making the order for indemnity costs. Their Honours noted that GIO had pursued a "hopeless" defence and had failed to make any reasonable offer of settlement despite the clear evidence against them. This conduct was deemed to be unreasonable and to have unnecessarily prolonged the litigation, thereby justifying the award of indemnity costs.
The appeal was dismissed, and GIO was ordered to pay the costs of the respondent on an indemnity basis.
Orders
Orders of the court
See para 7 for orders
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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