Grundmann v Georgeson

Case [2000] QCA 394


SUPREME COURT OF QUEENSLAND

CITATION: Grundmann v Georgeson  [2000] QCA 394
PARTIES: DAVID GRUNDMANN
(applicant/appellant)
v
LAURENCE EDWIN GEORGESON
(respondent/respondent)
FILE NO/S: Appeal No 61 of 2000
SC No 117 of 1995
DIVISION: Court of Appeal
PROCEEDING: General Civil Appeal
ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON: 29 September 2000
DELIVERED AT: Brisbane
HEARING DATE: 20 September 2000
JUDGES: Pincus and Thomas JJA, White J
Judgment of the Court
ORDER: Appeal dismissed with costs
CATCHWORDS:

PROCEDURE – COSTS – JURISDICTION – COSTS INDEMNITY ONLY

PROCEDURE – COSTS – TAXATION – PRINCIPLES OF TAXATION – IN GENERAL – appellant unsuccessful at trial and appeal in action against respondent – costs order made in favour of respondent – respondent's solicitors engaged and instructed by Right to Life Association – whether respondent liable to pay solicitors' costs – whether appellant required to pay fees of respondent's solicitors pursuant to costs order

Angor Pty Ltd v Ilich Motor Company Pty Ltd (1992) 37 FCR 65, considered

Backhouse v Judd [1925] SASR 395, considered
Blackall v Trotter (No 1) [1969] VR 939, considered

Halliday v High Performance Personnel Pty Ltd (in liq) (1993) 113 ALR 637, considered

COUNSEL: M E Pope for the appellant
G J Robinson for the respondent
SOLICITORS: Nehmer McKee & Partners for the appellant
Boulton Cleary & Kern for the respondent
  1. THE COURT:  This is an appeal from Muir J, who dismissed an application to review an assessment of costs.  The only question raised by the appeal is whether the respondent had any liability for costs;  if he did not, then, it is said, there was no right to receive any costs from the appellant.  The costs in question were asserted to have been incurred by the respondent in relation to an appeal against judgment in an action brought against him by the appellant.  In February or March 1993, Mr D Kerr, a solicitor and an officer of the Queensland Right to Life Association, gave instructions to Boulton Cleary and Kern, solicitors, of Townsville to act as solicitors on the record for the respondent in that action.  On 18 March 1993, Boulton Cleary and Kern wrote to Mr Kerr saying that, with a certain reservation, the instructions would be accepted, on the basis that they would not make any professional charges to the Association "but that in the event that an Order for costs was obtained against [the appellant] we would render costs for the work done by us and accept whatever amount in respect of those costs was recovered from him".  There was a reply from the president of the Association accepting Boulton Cleary and Kern's proposal.

  1. On 7 December 1993 the respondent wrote to Boulton Cleary and Kern about the action, saying "that I wish you to take your instructions for the conduct of this litigation on my behalf from Mr Doug Kerr of the Queensland Right to Life Association".  A few months later, in April 1994, the respondent paid $7,000 into the trust account of…

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AGLC
Grundmann v Georgeson [2000] QCA 394
Case
[2000] QCA 394
Decision Date

CaseChat Overview and Summary

The case of Grundmann v Georgeson involved a dispute between two parties, where the respondent was successful in both the trial and the appeal. The appellant had initiated an action against the respondent, but was unsuccessful at both stages. The respondent's solicitors were engaged and instructed by the Right to Life Association. The central issue was whether the respondent was liable to pay the solicitors' costs and whether the appellant was required to pay the respondent's solicitor's fees as per the costs order.

The court examined whether the costs order, which was in favour of the respondent, mandated the appellant to pay the fees of the respondent's solicitors who were engaged by a third party, the Right to Life Association. The court considered the principles of taxation of costs, which generally require the unsuccessful party to pay the successful party's costs. However, the court had to determine if this principle applied when the successful party's solicitors were engaged by a third party, rather than directly by the successful party.

The court concluded that the costs order made in favour of the respondent did not impose a liability on the appellant to pay the fees of the respondent's solicitors who were engaged by the Right to Life Association. The court held that the appellant was not required to pay the fees of the respondent's solicitors as per the costs order. Consequently, the appeal was dismissed with costs.

Orders

Orders of the court

Appeal dismissed 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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