JJES Pty Ltd v Sayan (No 2)

The matter before the Court was between JJES Pty Ltd, a company, and Sayan, an individual, who was a director of the company. The dispute revolved around the assessment of costs, specifically whether an order for non-party costs against a director was appropriate. The case was heard in the Supreme Court of Victoria. The Court was tasked with determining whether it was appropriate to make a non-party costs order against a director who was not directly involved in the proceedings but was connected to the company that was a party to the litigation.

The legal issue before the Court was whether a non-party costs order against a director was appropriate in the circumstances of this case. The Court considered whether the director had acted unreasonably in the conduct of the litigation and whether the making of such an order would serve as a deterrent to similar conduct in the future. The Court also considered whether the making of such an order would be just and equitable in all the circumstances of the case.

The Court held that it was appropriate to make a non-party costs order against the director. The Court found that the director had acted unreasonably in the conduct of the litigation by, among other things, making unfounded allegations against the other party and their legal representatives. The Court considered that the making of such an order would serve as a deterrent to similar conduct in the future and would be just and equitable in all the circumstances of the case. The Court also noted that the company, as the party to the litigation, was not in a position to bear the costs of the litigation and that it was appropriate to make an order against the director who was connected to the company.

The Court ordered that Sayan, the director, pay the costs of JJES Pty Ltd in the sum of $15,000 within 28 days of the judgment. The Court also ordered that if the costs were not paid within the specified time, interest would accrue on the amount owed at the rate of 9% per annum from the date of judgment until the date of payment.