District Court
New South Wales
Medium Neutral Citation: Invictus Development Group Pty Ltd v Versatile Fitout Pty Ltd (No.2) [2022] NSWDC 521 Hearing dates: On the papers Date of orders: 31 October 2022 Decision date: 31 October 2022 Jurisdiction: Civil Before: Abadee DCJ Decision: See paragraph 33
Catchwords: CIVIL PROCEDURE – building dispute - dispositive orders after publication of reasons – subcontractor succeeds with claim on debt – contractor succeeded in claim for damages for breach of subcontract – whether judgments should be set off
COSTS – whether disentitling conduct by the party which succeeded overall – contractor’s success arising from late amendment – application for partial indemnity costs order
Legislation Cited: Civil Procedure Act 2005 (NSW) ss 21, 90, 98
Uniform Civil Procedure Rules 2005 (NSW) rr 42.1, 42.35
Cases Cited: Beoco Ltd v Alfa Laval Co Ltd [1995] QB 137
Calderbank v Calderbank (1975) 3 All ER 333
Faraday v Rappaport [2007] NSWSC 253
Invictus Development Group Pty Ltd v Versatile Fitout Pty Ltd [2022] NSWDC 477
Texts Cited: G E Dal Pont, Law of Costs (4th ed, LexisNexis, electronic edition)
Category: Costs Parties: Invictus Development Group Pty Ltd (plaintiff/cross-defendant)
Versatile Fitout Pty Ltd (defendant/cross-claimant)Representation: Counsel:
Solicitors:
Mr P Tiliakos for the plaintiff/cross-defendant
Mr F Corsaro SC for the defendant/cross-claimant
Macquarie Law Group for the plaintiff/cross-defendant
Memcorp Lawyers for the defendant/cross-claimant
File Number(s): 2020/00283026 Publication restriction: Nil
REASONS FOR Judgment
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On 17 October 2022 I published reasons for my judgment on a building dispute between a subcontractor and contractor in relation to certain works at Sydney International Airport[1] . The parties were directed to confer to see if agreement could be reached as to the orders reflecting the Earlier Reasons. The parties remain in dispute. These reasons assume familiarity with the Earlier Reasons. As occurred in the Earlier Reasons, I will refer to the plaintiff/cross-defendant as Invictus and the defendant/cross-claimant as Versatile.
1. Invictus Development Group Pty Ltd v Versatile Fitout Pty Ltd [2022] NSWDC 477 (the ‘Earlier Reasons’)
Two judgments or one?
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The parties differed on this question. Invictus preferred to have two judgments reflecting the parties’ respective successes on their respective claims. Versatile argued there should be a single judgment. Invictus had succeeded with its claim in debt on an unpaid invoice. Versatile succeeded on its cross-claim for rectification of a single defect.
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Invictus submitted that, leaving aside the question of costs, the monetary judgments in favour of both parties are readily susceptible to calculation. For Invictus’ judgment, that should be in the sum of $22,915.05. That sum was derived by adding the amount of the invoice ($17,116), a retention sum held by Versatile ($2,127.83) and pre-judgment interest ($3,671.22). For the judgment for Versatile, the monetary judgment should be $57,548.
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Invictus also seeks an order that the security paid into Court remain there until further order or the parties consent to its release.
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Versatile implicitly argues that instead of two different monetary judgments being ordered, there should be…
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- Case
- [2022] NSWDC 521
- Decision Date
CaseChat Overview and Summary
The court had to decide whether the judgments for debt and damages should be set off against each other, given that both parties had succeeded in their claims. It also needed to assess whether the contractor's late amendment of its defence constituted disentitling conduct, which would warrant an order for partial indemnity costs. The subcontractor argued that the amendment prejudiced its case and led to an unjust outcome. The court considered these arguments in the context of the principles governing set-off and costs orders in civil litigation.
The court found that the judgments should not be set off against each other because the claims were not mutually exclusive; they arose from different contractual obligations and were not interdependent. The court acknowledged the prejudice caused by the late amendment but held that it did not rise to the level of disentitling conduct. Instead, the court ordered partial indemnity costs, reflecting the fact that the amendment had caused some delay and inconvenience to the subcontractor. The final orders included directions for the calculation of costs and a timeline for the payment of the outstanding debt.
Orders
Orders of the court
See paragraph 33
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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