FEDERAL COURT OF AUSTRALIA
Keen v Telstra Corporation Limited (No 2) [2006] FCA 930
COSTS – gross sum specified in order – approach to quantification of gross sum – Federal Court Rules O 62 r 4(2)(c)
Federal Court Rules O 62 r 4(2)(c)
LA-RAINE LESLEY KEEN v TELSTRA CORPORATION LIMITED
NSD 2528 OF 2005
RARES J
4 JULY 2006
SYDNEY
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
NSD 2528 OF 2005
BETWEEN:
LA-RAINE KEEN
APPLICANTAND:
TELSTRA CORPORATION LIMITED
RESPONDENTJUDGE:
RARES J
DATE OF ORDER:
4 JULY 2006
WHERE MADE:
SYDNEY
THE COURT ORDERS THAT:
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
NSD 2528 OF 2005
BETWEEN:
LA-RAINE LESLEY KEEN
APPLICANTAND:
TELSTRA CORPORATION LIMITED
RESPONDENT
JUDGE:
RARES J
DATE:
4 JULY 2006
PLACE:
SYDNEY
REASONS FOR JUDGMENT
(REVISED FROM THE TRANSCRIPT)
I will make an order pursuant to O 62 r 4(2)(c) of the Federal Court Rules for the sum of the applicant's costs of the proceedings to be fixed in a total amount for the following reasons. I noted in my reasons for judgment in [49], the amount at issue in this matter is insubstantial. Ms Keen had to come to the court in order to have the decision of the Tribunal as to the manner in which the review was to be heard under s 69A of the Administrative Appeals Tribunal Act 1975 (Cth) reviewed. She has succeeded in that part of her appeal but substantially failed on the other two matters that were raised as questions of law.
Telstra submits that I should reserve the costs of the proceedings until after the outcome of the further review I have ordered is known. Alternatively, it submits that each party ought pay its own costs and thirdly it submits that following inquiries made of a registrar of the court an amount of between $10,000 to $15,000 would be allowed on an assessment of a matter of this kind were it taxed.
Ms Keen argues that, excluding GST, her total costs of this appeal amount to about $38,000 including the $21,000 for solicitors’ fees, $12,000 for counsel. Those amounts it should be noted include fees charged for attending the unsuccessful mediation which the parties voluntarily had with a registrar of the court.
The purpose of a fixed costs order under O 62 r 4(2)(c) is to save the parties the time, trouble, delay, expense and aggravation in having a taxation proceed on a matter. The court deals as a commonplace with administrative appeals of this nature. This appeal raised three issues of law of no particular complexity or difficulty so far as the need for large amounts of solicitors’ preparation were concerned. I must say I am quite staggered that an amount of $21,000 before GST has been incurred in solicitors costs…
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- Case
- [2006] FCA 930
- Decision Date
CaseChat Overview and Summary
The court considered the purpose of a fixed costs order under O 62 r 4(2)(c) to avoid the expense, delay, and aggravation involved in protracted litigation arising out of taxation. The court also noted that the appeal raised three issues of law of no particular complexity or difficulty, and was of an insubstantial amount. The court was particularly concerned with the excessive costs incurred by the applicant, including fees charged for attending the unsuccessful mediation. In light of these considerations, the court determined that fixing the amount of costs was appropriate to prevent further argument and delay in finalising the matter. The court fixed the sum of $13,500 to be paid by the respondent to the applicant, taking into account the applicant's partial success and the failed mediation. The court also acknowledged that further taxation would likely be required before the Administrative Appeals Tribunal, which would incur additional costs for both parties.
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Background
Background to the litigation
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Ratio Decidendi
Legal Principle Established
Established by: RARES J
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