Hanrick v Donsky

Case [2025] QDC 118


DISTRICT COURT OF QUEENSLAND

CITATION:

Hanrick v Donsky [2025] QDC 118

PARTIES:

RICHARD HANRICK

(Applicant)

v

TIMOTHY DONSKY

(Respondent)

FILE NO/S:

886/25

DIVISION:

Civil

PROCEEDING:

Application

ORIGINATING COURT:

District Court of Queensland, Brisbane

DELIVERED ON:

8 August 2025

DELIVERED AT:

Brisbane

HEARING DATE:

15 July 2025

JUDGE:

Grigg DCJ

ORDER:

Applicant pay the respondent’s costs thrown away by reason of the adjournment on a standard basis

CATCHWORDS:

PRACTICE AND PROCEDURE – COSTS – COSTS ORDER – Standard costs – General rule – Costs follow the event – whether the adjournment application could have been made prior to the hearing – whether the applicant’s wish to proceed by way of originating application warranted an indemnity costs order.

LEGISLATION:

Property Law Act 1974 (Qld) s 179

Uniform Civil Procedure Rules 1999 (Qld) r 11(a), 14, 14(2), 429H, 702, 704(1)

CASES:

Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd [2020] FCA 598
Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225
Down v Murray [2017] QDC 313
MA v Qin (No 2) [2025] VSC 364

Smits v Tabone [2007] QCA 337

COUNSEL:

R McDermott for the Applicant

C Doyle for the Respondent

SOLICITORS:

RB Lawyers for the Applicant

Kilmartin Knyvett Lawyers for the Respondent

Introduction

  1. The parties are in dispute about a trench that runs along the cadastral boundary line of their respective properties. The applicant is concerned that the existence of the trench will cause damage to buildings on the applicant’s property if it is not filled in.

  2. It is not controversial that the parties agreed that the respondent could dig the trench in April 2024, to allow the respondent to install a pipe along the length of the respondent’s property. The parties dispute, among other things, is whether it was part of the agreement that the trench would be refilled within a reasonable time.

  3. The applicant commenced the claim by originating application on 17 April 2025, seeking final relief in the form of a mandatory injunction.

  4. At the original hearing for the matter, Counsel for the respondent submitted that the matter should have proceeded by way of claim and statement of claim. The respondent also informed the Court that he objected to the admission of the entirety of a report prepared by a structural engineer, Mr Meng. The applicant was intending to rely on Mr Meng’s report as an expert witness report. The respondent objected to the admission of Mr Meng’s report on the grounds that it:

    (a)was non-compliant with the expert evidence rules in the Uniform Civil Procedure Rules 1999 (Qld) (UCPR);[1]

    (b)is deficient in that Mr Meng fails to explain how he reaches his conclusions.

    [1] See rule 429H Requirements for report.

  5. Following the discussion about these matters raised by the respondent, I adjourned the hearing briefly so the parties could discuss how best to proceed and attempt to agree on directions for the progress of the matter.

  6. After the adjournment, the parties agreed to the following directions being made:

    (a)that pursuant to r 14(2)…

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Details
AGLC
Hanrick v Donsky [2025] QDC 118
Case
[2025] QDC 118
Decision Date

CaseChat Overview and Summary

Hanrick v Donsky is a case involving the determination of costs, specifically the application of indemnity costs, following a dispute between the parties. The case was heard by the Queensland Court of Appeal, where the primary focus was on whether certain costs incurred due to an adjournment could be ordered on an indemnity basis, and whether the applicant's decision to proceed with an originating application warranted such an order.

The legal issues before the court included whether the adjournment application could have been made prior to the hearing and if the applicant's choice to proceed by way of an originating application justified an indemnity costs order. The court had to consider the principles surrounding the exercise of discretion to order indemnity costs, drawing from various authorities that outline the circumstances under which such orders may be appropriate. These principles include instances where allegations of fraud are knowingly false, proceedings are commenced for ulterior motives, or the proceedings are unduly prolonged by groundless contentions. The court also needed to determine if there was unreasonable conduct that warranted a shift from the usual party and party costs.

In reaching its decision, the court carefully reviewed the relevant authorities and the specific circumstances of the case. It concluded that while the circumstances did not warrant an indemnity costs order, the applicant was to bear the costs thrown away due to the adjournment on a standard basis. This decision reflected the court's assessment that the application for adjournment could have been made prior to the hearing and that the applicant's decision to proceed with the originating application did not meet the threshold for an indemnity costs order. The court's reasoning was grounded in the principles that an indemnity costs order is not the norm and requires evidence of unreasonable conduct or a hopeless case.

Orders

Orders of the court

Applicant pay the respondent’s costs thrown away by reason of the adjournment on a standard basis

Background

Background to the litigation

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Evidence

Evidence Before The Court

Principles relevant to the exercise of a discretion to order indemnity costs are set out in numerous authorities, including Smits v Tabone and Blue Coast Yeppoon Pty Ltd v Tabone [2007] QCA 337 (Smits). In Smits, Cullinane J summarised the principles by reference to Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225 as follows:42. The normal order for costs is on the standard basis and some special reason is required for any departure from that.43. Sheppard J in Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225 discussed the subject generally and identified categories of cases in which it would be appropriate to make such an order. These categories were not meant to be exhaustive:"Notwithstanding the fact that that is so, it is useful to note some of the circumstances which have been thought to warrant the exercise of the discretion. I instance the making of allegations of fraud knowing them to be false and the making of irrelevant allegations of fraud (both referred to by Woodward J in Fountain and also by Gummow J in Thors v Weekes(1989) 92 ALR 131 at 152; evidence of particular misconduct that causes loss of time to the Court and to other parties (French J in Tetijo); the fact that the proceedings were commenced or continued for some ulterior motive (Davies J in Ragata) or in wilful disregard of known facts or clearly established law (Woodward J in Fountain and French J in J-Corp (supra)); the making of allegations which ought never to have been made or the undue prolongation of a case by groundless contentions (Davis J in Ragata); an imprudent refusal of an offer to compromise (eg Messiter v Hutchinson(1987) 10 NSWLR 525; Maitland Hospital v Fisher (No 2)(1992) 27 NSWLR 721 at 724 (Court of Appeal); Crisp v Kent (unreported, Court of Appeal, NSW, Kirby P, Priestley JA, Cripps JA, No 40744/1992, 27 September 1993) and an award of costs of an indemnity basis against a contemnor (eg Megarry V-C in EMI Records (supra)). Other categories of cases are to be found in the reports."44. In Rosniak v Government Insurance Office (1997) 41 NSWLR 608, the New South Wales Court of Appeal sounded a cautious note at 616:"… the Court requires some evidence of unreasonable conduct, albeit that it need not rise as high or vexation. This is because party and party costs remain the norm, although it is common knowledge that they provide an inadequate indemnity. Any shift to a general or common rule that indemnity costs should be the order of the day is a matter for the legislature or the rule-maker."45. In Baillieu Knight Frank (NSW) Pty Ltd v Ted Manny Real Estate Pty Ltd (1992) 30 NSWLR 359, Powell J expressed the view that an order for indemnity costs was warranted where in effect the proceedings had no reasonable prospect of success.46. Rolfe A/JA (as he then was) in Huntsman Chemical Company Australia Ltd v International Pools Australia Pty Ltd (1995) 36 NSWLR 242 at 273 after reviewing the authorities, said:"In my opinion the authorities support the proposition that where a party persists in a hopeless case, that justifies, for all the reasons given, the making of an order for costs on an indemnity basis."47. See also cases such as Di Carlo v Dubois & Ors [2002] QCA 225.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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