SUPREME COURT OF QUEENSLAND
CITATION:
M Salazar Properties Pty Ltd v Jeffs [2024] QSC 86
PARTIES:
M Salazar Properties Pty Ltd
(applicant)
v
Justin Noel Jeffs
(respondent)
FILE NO:
BS10187/22
DIVISION:
Trial division
PROCEEDING:
Originating application
ORIGINATING COURT:
Supreme Court at Brisbane
DELIVERED ON:
16 May 2024
DELIVERED AT:
Brisbane
HEARING DATE:
On the papers
JUDGE:
Hindman J
ORDERS:
As per Attachment A
CATCHWORDS: PROCEDURE – CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS – COSTS – PARTIES AND NON-PARTIES GENERALLY – where if costs awarded against the applicant the respondent sought non-party costs order against the directors of the applicant – whether the directors’ involvement in the conduct of litigation and their interests in the grant of easement justify making of costs order against them on principles discussed in Knight v FP Special Assets Ltd (1992) 174 CLR 178
Property Law Act 1974 (Qld), ss. 180, 181
COUNSEL:
Nil
SOLICITORS:
ADVOCATES
(with leave):Nil
J Merlo / M Salazar for the applicant
D Jeffs for the respondent
Introduction
On 29 February 2024 reasons for judgment were delivered following a two day trial that took place on 7 and 8 September 2023. The reasons recorded at [159] – [162] the envisaged form of final orders to be made. A preliminary view about the costs of the proceeding was recorded at [163] – [167]. The orders made on 29 February 2024 were:
1.On conditions to be recorded in a final order, the Court imposes on Lot 197, RP116684, title reference 14287174 a statutory right of user pursuant to section 180(1) of the Property Law Act 1974 (Qld), in favour of Lot 199, RP116684, title reference 14287176.
2.The parties are directed to, by 4pm on 27 March 2024, deliver by email to the associate to Hindman J draft orders agreed by the parties to reflect the Court’s reasons or if there is not agreement, draft orders each party contends reflects the Court’s reasons.
3.The parties are directed to, by 4pm on 27 March 2024, advise the associate to Hindman J by email if they wish to be heard in relation to the issue of the costs of the proceeding.
The parties did not agree a final form of orders and did wish to be heard about costs. The parties agreed those two matters could be dealt with on the papers. To facilitate that occurring, the Court has received and considered the following additional material filed by the parties:
(a)court document 72 - submissions for the respondent
(b)court document 73 - affidavit of J Jeffs
(c)court document 74 - affidavit of M Salazar
(d)court document 75 - affidavit of D Meredith
(e)court document 76 - submissions for the applicant
(f)court document 77 - submissions in reply for the respondent
(g)court document 78 - affidavit of J Jeffs
(h)court document 79 - affidavit of M Salazar
(i)court document 80 - further submissions for the applicant.
Some preliminary comments about that material are useful to record.…
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- Case
- [2024] QSC 86
- Decision Date
CaseChat Overview and Summary
The central legal issue before the court was whether the directors of the applicant, who were also the shareholders, could be held liable for costs under the principles established in Knight v FP Special Assets Ltd (1992) 174 CLR 178. The court needed to determine if the directors' involvement in the litigation and their personal interest in the grant of the easement warranted the imposition of non-party costs against them. The court considered the extent of the directors' participation in the proceedings, their influence on the litigation strategy, and whether they were acting in their capacity as directors or as shareholders.
After reviewing the evidence and the legal precedents, the court concluded that the directors' involvement in the litigation was significant enough to warrant the imposition of non-party costs against them. The court found that the directors were not merely passive shareholders but were actively involved in the decision-making process and the strategic direction of the litigation. Their personal interest in the outcome, given their ownership of the applicant, further supported the making of a costs order against them. The court ultimately determined that the directors' actions and interests justified the imposition of costs in accordance with the principles discussed in Knight v FP Special Assets Ltd.
The final orders of the court are detailed in Attachment A.
Orders
Orders of the court
As per Attachment A
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
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