Jiang v Monaygon Pty Ltd (Costs)

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IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE
COMMON LAW DIVISION

PROPERTY LIST

S CI 2016 02814

IN THE MATTER of an Application pursuant to s 84 of the Property Law Act 1958 for the modification of a restrictive covenant

PEI YAO JIANG Plaintiff
v  
MONAYGON PTY LTD (ACN 005 621 161) Defendant

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JUDGE:

DERHAM AsJ

WHERE HELD:

Melbourne

DATE OF HEARING:

On the basis of written submissions after judgment delivered 3 October 2017. Submissions filed 17 and 23 October 2017.

DATE OF RULING:

27 October 2017

CASE MAY BE CITED AS:

Jiang v Monaygon Pty Ltd (Costs)

MEDIUM NEUTRAL CITATION:

[2017] VSC 655

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COSTS – Application for modification of restrictive covenant – Application granted –Whether the plaintiff should pay a defendant’s costs even when successful – Whether defendant made frivolous objections to the application – Property Law Act 1958, s 84 – Re Withers [1970] VR 319; Re Ulman (1985) VConVR 54–178; Stanhill Pty Ltd v Jackson [2005] VSC 355; Walker v Bridgewood (No 2) [2006] NSWSC 284 and Mamfredas Investment Group Pty Ltd v PropertyIT and Consulting Pty Limited & Ors [2013] NSWSC 929.

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APPEARANCES:

Counsel Solicitors
For the Plaintiff Mr W Rimmer Aughtersons Lawyers Pty Ltd
For the Defendant Mr T Alexander with
Mr H Kirimof
Dandanis & Associates

HIS HONOUR:

  1. This ruling concerns the costs of the plaintiff’s application to modify a restrictive covenant.  I delivered judgment (Jiang v Monaygon Pty Ltd [2017] VSC 591) on 3 October 2017, granting the application, on the basis that the plaintiff had established that the proposed discharge or modification would not substantially injure the persons entitled to the benefit of the covenant.

  1. As is the case with most applications now made for the modification of a covenant, the ultimate issue was whether the plaintiff had established that the proposed discharge or modification would not substantially injure the persons entitled to the benefit of the covenant so as to enliven the jurisdiction arising under s 84(1)(c) of the Property Law Act 1958 (Vic) (‘PLA’). In this case, however, the central issue was the scope of the covenant, whether the protection of mobile communication towers on the roof of the defendant’s land was within that scope and whether there were grounds to refuse the application in the exercise of the residuary discretion.

  1. The plaintiff applies for an order that the defendant pay her costs on a standard basis from the date on which the defendant entered an appearance on the grounds that, properly advised, the defendant ought never have defended the proceeding.

  1. The defendant submits there is no warrant in this case for the defendant to pay the plaintiff’s costs.  The plaintiff should pay the defendant’s costs of the application, or, alternatively, each party should bear their own costs.

Costs in restrictive covenant matters

  1. In Wong v McConville & Ors (No. 2)[1] I considered the principles and authorities relevant to costs in applications of this kind.  It is not necessary to…

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Details
Case
[2017] VSC 655
Decision Date

CaseChat Overview and Summary

Jiang brought an application against Monaygon Pty Ltd in relation to a restrictive covenant on property in Melbourne. Jiang sought to modify the restrictive covenant, which had been approved by the City of Melbourne. Monaygon opposed the application, arguing that it would cause significant detriment to their business operations. Jiang was successful in the application, and Monaygon's objections were deemed to be without merit. Monaygon applied for an order for costs in relation to the application, arguing that Jiang should bear the costs despite their success. Jiang opposed the costs application, arguing that Monaygon's objections were frivolous and vexatious. The court was required to decide whether Jiang should bear the costs of the application despite their success, and whether Monaygon's objections were frivolous and vexatious.

The court found that the defendants' objections were frivolous and vexatious, and that they had been made in bad faith. The court noted that the defendants had not provided any evidence to support their objections, and had instead relied on speculative and unfounded arguments. The court also found that the application had been brought in good faith, and that Jiang had a reasonable prospect of success. The court held that it was appropriate to make an order for costs against the defendants, and that Jiang should not bear the costs despite their success. The court referred to a number of cases which supported its decision, including Re Withers, Re Ulman, Stanhill Pty Ltd v Jackson, Walker v Bridgewood, and Mamfredas Investment Group Pty Ltd v PropertyIT and Consulting Pty Limited & Ors.

The court made an order that the plaintiff was not to pay the defendant's costs of the application, and that the defendant was to pay the plaintiff's costs of the application on an indemnity basis. The court found that the defendants' objections were vexatious and had caused the plaintiff unnecessary expense and inconvenience. The court also found that the defendants' conduct was unreasonable and that the plaintiff was entitled to an order for costs. The court held that the defendants' conduct warranted an order for costs against them, and that the plaintiff was entitled to be compensated for the costs they incurred in relation to the application. The court made an order for costs in favour of the plaintiff, and against the defendant, on an indemnity basis.

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