Gray v Hobson (No 2)

Case [2018] NSWCA 131


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Gray v Hobson (No 2) [2018] NSWCA 131
Hearing dates: On the papers
Decision date: 18 June 2018
Before: Basten JA; Macfarlan JA; Simpson AJA
Decision:

(1)   In lieu of order (5) made on 1 March 2018:

 

(a)   Order that Mr Hobson pay Dr Gray’s costs of the trial up to and including 1 November 2016 on the ordinary basis.
(b)   Order that Mr Hobson pay Dr Gray’s costs of the trial from 2 November 2016 on the indemnity basis.
(c)   Otherwise dismiss Dr Gray’s notice of motion filed 15 March 2018.

 (2)   Dismiss Mr Hobson’s notice of motion filed 15 March 2018 with costs.
Catchwords:

APPEAL – costs of appeal – offer of compromise at trial – offer not renewed

 

APPEAL – costs of appeal – appellant successful on particular issues – judgment below set aside – whether costs to be apportioned by issue

 

COSTS – interest on costs – application to vary default position under statute – whether adequate reasons for ordering interest

  COSTS – offer of compromise – offer prior to trial – whether period offer open for acceptance was “reasonable in the circumstances”
Legislation Cited: Civil Procedure Act 2005 (NSW), s 101
Uniform Civil Procedure Rules 2005 (NSW), rr 20.26, 36.16, 42.14
Cases Cited: Kooee Communications Pty Ltd v Primus Telecommunications Pty Ltd (No 2) [2008] NSWCA 85
Leda v Weerden (No 3) [2006] NSWSC 220
McKeith v Royal Bank of Scotland Group PLC (No 2) [2016] NSWCA 260
Port Kembla Coal Terminal Ltd v Construction, Forestry, Mining and Energy Union (NSW Branch) (No 2) (2014) 88 NSWLR 471; [2014] NSWIC 3
Ryde Developments Pty Ltd v The Property Investors Alliance Pty Ltd (No 2) [2018] NSWCA 40
South West Helicopters Pty Ltd v Stephenson (No 2) [2018] NSWCA 99
Category:Costs
Parties: Dr Randolph Gray (Appellant)
Brendan Hobson (Respondent)
Representation:

Counsel:
S Woods (Appellant)
R de Meyrick (Respondent)

  Solicitors:
Norton Rose Fulbright Australia (Appellant)
Grieve Watson Kelly (Respondent)
File Number(s): CA 2017/168320
 Decision under appeal 
Court or tribunal:
Supreme Court
Jurisdiction:
Common Law
Citation:
[2017] NSWSC 589
Date of Decision:
17 May 2017
Before:
Harrison J
File Number(s):
SC 2013/80267

Judgment

  1. THE COURT: Judgment on this appeal was delivered on 1 March 2018: Sparks v Hobson; Gray v Hobson [2018] NSWCA 29. It allowed Dr Gray’s appeal and ordered the entry of judgment in his favour. Mr Hobson was ordered to pay Dr Gray’s costs of the proceedings at first instance and on appeal.

  2. Both parties applied by notice of motion filed within the 14 day period specified in r 36.16(3A) of the Uniform Civil Procedure Rules 2005 (NSW) (“UCPR”) for variation of the costs orders. It is convenient to deal with that of Dr Gray first.

Whether costs of trial should be payable on the indemnity basis

  1. Dr Gray seeks an order that the costs of the proceedings at first instance be payable on the ordinary basis up…

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AGLC
Gray v Hobson (No 2) [2018] NSWCA 131
Case
[2018] NSWCA 131
Decision Date

CaseChat Overview and Summary

The appeal concerned the costs of a trial and an application to vary the default position regarding interest on costs. The parties involved were Dr Gray and Mr Hobson. The dispute arose from a prior trial where an offer of compromise had been made.

The court was required to determine whether the appellant, Dr Gray, was successful on particular issues, thereby justifying setting aside the judgment below and apportioning costs by issue. Further, the court considered whether the period an offer of compromise was open for acceptance was reasonable in the circumstances, and whether adequate reasons existed for ordering interest on costs, thereby varying the default statutory position.

The court reasoned that the offer of compromise made prior to trial was not renewed, and that Dr Gray was successful on certain issues, leading to the judgment below being set aside. Consequently, the court ordered that Mr Hobson pay Dr Gray’s costs of the trial up to and including 1 November 2016 on the ordinary basis, and from 2 November 2016 on the indemnity basis. Dr Gray’s notice of motion filed on 15 March 2018 was otherwise dismissed. Mr Hobson’s notice of motion filed on the same date was also dismissed with costs.

Orders

Orders of the court

(1) In lieu of order (5) made on 1 March 2018:

(a) Order that Mr Hobson pay Dr Gray’s costs of the trial up to and including 1 November 2016 on the ordinary basis.

(b) Order that Mr Hobson pay Dr Gray’s costs of the trial from 2 November 2016 on the indemnity basis.

(c) Otherwise dismiss Dr Gray’s notice of motion filed 15 March 2018.

(2) Dismiss Mr Hobson’s notice of motion filed 15 March 2018 with costs.

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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