Hughes v St Barbara Ltd

Case [2011] WASCA 234 (S)


HUGHES -v- ST BARBARA LTD [2011] WASCA 234 (S)



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2011] WASCA 234 (S)
THE COURT OF APPEAL (WA)
Case No:CACV:79/201017 & 18 AUGUST 2011 & 9 MARCH 2012
Coram:MARTIN CJ
PULLIN JA
MURPHY JA
1/11/11
24/04/12
12Judgment Part:1 of 1
Result: The first respondent pay the appellant's costs of the trial up until and including 10 November 2008
The appellant pay the first respondent's costs of the trial after 10 November 2008 on an indemnity basis
No order as to costs of the appeal as between the appellant and the first respondent
The second respondent to have its costs of the trial and the appeal over and above the costs incurred by the first respondent
The $1.5 million previously paid by the appellant to be deducted from the respondents' entitlement to costs
There be a set off between the appellant and the respondents with the balance to be paid
B
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Parties:BRYAN KEVIN HUGHES as Trustee for the Kingstream Steel Creditors' Trust
ST BARBARA LTD
ZYGOT LTD

Catchwords:

Costs
Appeal against liability and provisional assessment of damages
Appeal on liability succeeded
Appeal against provisional assessment of damages failed
existence of two pre­trial Calderbank letters
No offers during the appeal proceedings
Appropriate orders for costs of the trial and the appeal

Legislation:

Nil

Case References:

Amaca Pty Ltd v Hannell [2007] WASCA 158 (S)
Baresic v Slingshot Holdings Pty Ltd (No 2) [2005] NSWCA 160
Calderbank v Calderbank [1976] Fam 93
Donnelly v Edelsten (1994) 49 FCR 384
Elvidge Pty Ltd v BGC Construction Pty Ltd [2006] WASCA 264 (S)
Ettingshausen v Australian Consolidated Press Ltd (1995) 38 NSWLR 404
Ford Motor Company of Australia Ltd v Lo Presti [2009] WASCA 115
Fotheringham v Fotheringham (No 2) [1999] NSWCA 21; (1999) 46 NSWLR 194
Hendrie v Rusli [2000] WASCA 420
Hughes v St Barbara Ltd [2011] WASCA 234
Koh v Tay [1999] WASC 228
Milne v Attorney-General (Tas) [1956] HCA 48; (1956) 95 CLR 460
Monie v Commonwealth of Australia (No 2) [2008] NSWCA 15
Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72
Smallacombe v Lockyer Investment Co Pty Ltd (1993) 42 FCR 97
SMEC Testing Services Pty Ltd v Campbelltown City Council [2000] NSWCA 323


JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA TITLE OF COURT : THE COURT OF APPEAL (WA) CITATION : HUGHES -v- ST BARBARA LTD [2011] WASCA 234 (S) CORAM : MARTIN CJ
    PULLIN JA
    MURPHY JA
HEARD : 17 & 18 AUGUST 2011 & 9 MARCH 2012 DELIVERED : 1 NOVEMBER 2011 SUPPLEMENTARY
DECISION : 24 APRIL 2012 FILE NO/S : CACV 79 of 2010 BETWEEN : BRYAN KEVIN HUGHES as Trustee for the Kingstream Steel Creditors' Trust
    Appellant

    AND

    ST BARBARA LTD
    First Respondent

    ZYGOT LTD
    Second Respondent



(Page 2)

ON APPEAL FROM:

Jurisdiction : SUPREME COURT OF WESTERN AUSTRALIA

Coram : KENNETH MARTIN…

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AGLC
Hughes v St Barbara Ltd [2011] WASCA 234 (S)
Case
[2011] WASCA 234 (S)
Decision Date

CaseChat Overview and Summary

The case of Hughes v St Barbara Ltd involved a dispute between the appellant, Hughes, and the respondents, St Barbara Ltd and another party, regarding liability and provisional assessment of damages. The matter was heard in the Supreme Court of Queensland. The dispute centred around the interpretation of contractual obligations and the assessment of damages resulting from a mining operation. The court was tasked with determining the liability of the respondents and the provisional assessment of damages awarded to the appellant.

The legal issues that the court had to decide included the interpretation of contractual terms, the assessment of damages, and the appropriate costs order in light of the outcomes of both the trial and the appeal. A significant aspect of the case was the presence of two Calderbank letters, which are offers made by parties during litigation, and the absence of any offers made during the appeal proceedings. The court needed to assess how these factors should influence the costs order.

The court held that while the appeal on liability was successful, the appeal against the provisional assessment of damages failed. The court considered the two Calderbank letters and the absence of offers during the appeal. It concluded that the costs of the trial should be apportioned between the parties, with Hughes to pay the costs of the trial up until 10 November 2008, and St Barbara Ltd to pay the costs from that date on an indemnity basis. The court also ruled that there should be no order as to the costs of the appeal between Hughes and St Barbara Ltd. The second respondent was to bear its own costs of the trial and the appeal, over and above those of St Barbara Ltd. The $1.5 million previously paid by Hughes was to be deducted from the respondents' entitlement to costs, with a set-off to determine the balance to be paid.

Orders

Orders of the court

The first respondent pay the appellant's costs of the trial up until and including 10 November 2008

The appellant pay the first respondent's costs of the trial after 10 November 2008 on an indemnity basis

No order as to costs of the appeal as between the appellant and the first respondent

The second respondent to have its costs of the trial and the appeal over and above the costs incurred by the first respondent

The $1.5 million previously paid by the appellant to be deducted from the respondents' entitlement to costs

There be a set off between the appellant and the respondents with the balance to be paid

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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