Court of Appeal
Supreme Court
New South Wales
Medium Neutral Citation: Kumaran v Employsure Pty Ltd (No 2) [2022] NSWCA 247 Hearing dates: On the papers (last submissions 29 November 2022) Date of orders: 6 December 2022 Decision date: 06 December 2022 Before: Gleeson JA; Leeming JA; Kirk JA Decision: (1) The plaintiff pay 65 per cent of the defendants’ costs of the proceedings at first instance as agreed or assessed.
(2) The respondent to pay the appellants’ costs of the appeal as agreed or assessed.
(3) For the avoidance of doubt, order (2) does not include any costs in this appeal referable to the “protectable interest” issue.
Catchwords: COSTS – costs at first instance following different outcome on appeal – costs of appeal – whether costs should follow the event, or whether fractional costs order should be made
Legislation Cited: Restraint of Trade Act 1976 (NSW)
Uniform Civil Procedure Rules 2005 (NSW), r 42.1
Cases Cited: Calvo v Ellimark Pty Ltd (No 2) [2016] NSWCA 197
Doppstadt Australia Pty Ltd v Lovick & Son Developments Pty Ltd (No 2) [2014] NSWCA 219
McMurchy v Employsure Pty Ltd; Kumaran v Employsure Pty Ltd [2022] NSWCA 201
Windsurfing International Inc v Petit [1987] AIPC 90-441
Category: Costs Parties: Arumugam Kumaran (First appellant)
ELMO Software Limited Pty Ltd (ABN 13 102 455 087) (Second appellant)
Employsure Pty Ltd (ABN 40 145 676 026) (Respondent)Representation: Counsel:
Solicitors:
I M Neil SC / P Lowson (Appellants)
P J Brereton SC / P Moorhouse (Respondent)
K & L Gates (Appellants)
Kardos Scanlan (Respondent)
File Number(s): 2021/328225 Decision under appeal
- Court or tribunal:
- Supreme Court of New South Wales
- Jurisdiction:
- Equity Division
- Citation:
- Date of Decision:
- 26 October 2021
- Before:
- Sackar J
- File Number(s):
- 2021/16210; 2021/53385
Judgment
-
THE COURT: The Court delivered judgment in two related appeals on 11 October 2022: McMurchy v Employsure Pty Ltd; Kumaran v Employsure Pty Ltd [2022] NSWCA 201 (the appeal judgment). The McMurchy appeal was dismissed with costs. In the Kumaran appeal, the Court held that the primary judge erred in finding that a post-employment restraint against competition for a duration of nine months was reasonable. The Court allowed the appeal and set aside several orders below, including an order that the defendants (Mr Kumaran and ELMO Software Ltd (ELMO)) pay the plaintiff’s (Employsure) costs of the proceedings as agreed or assessed, and in lieu, ordered that the summons filed 24 February 2021 be dismissed. The Court reserved the question of costs on appeal and directed the parties to file and serve submissions as to appropriate consequential costs orders in this Court and below, noting that the question of costs would be determined on the papers. Those submissions have now been received.
Costs at first instance
-
Mr Kumaran and ELMO seek an order that Employsure pay their costs of the proceedings below as agreed or assessed, relying upon the usual rule in Uniform Civil Procedure Rules 2005 (NSW) (UCPR), r 42.1, that costs should follow the…
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- Case
- [2022] NSWCA 247
- Decision Date
CaseChat Overview and Summary
The court was required to determine whether costs should follow the event in the proceedings at first instance, or if a fractional costs order was more appropriate. Additionally, the court had to consider the costs of the appeal.
The court ordered that the plaintiff pay 65 per cent of the defendants’ costs of the proceedings at first instance. The respondent was ordered to pay the appellants’ costs of the appeal. For clarity, it was specified that the order for costs of the appeal did not include any costs referable to the "protectable interest" issue.
Orders
Orders of the court
(1) The plaintiff pay 65 per cent of the defendants’ costs of the proceedings at first instance as agreed or assessed.
(2) The respondent to pay the appellants’ costs of the appeal as agreed or assessed.
(3) For the avoidance of doubt, order (2) does not include any costs in this appeal referable to the “protectable interest” issue.
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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