McLennan v Clapham (No 2)

Case [2019] ACTSC 100


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

McLennan v Clapham & Ors (No 2)

Citation:

[2019] ACTSC 100

Hearing Date:

On the papers

DecisionDate:

18 April 2019

Before:

McWilliam AsJ

Decision:

See [40]

Catchwords:

COSTS – Whether defendants were really the successful party – whether Magistrates Court would have had jurisdiction to hear proceedings brought in the Supreme Court so that r 1725 of the Court Procedures Rules 2006 (ACT) applies – whether it was unreasonable for the plaintiffs to reject a Calderbank offer

Legislation Cited:

Court Procedures Act 2004 (ACT) ss 12, 13, 14, 15
Court Procedures Rules 2006
(ACT) rr 1721, 1725

Magistrates Court Act 1930 (ACT) s 257

Cases Cited:

Calderbank v Calderbank [1975] 3 All ER 333; 3 WLR 586

Dodds Family Investments Pty Ltd (formerly Solar Tint Pty Ltd) v Lane Industries Pty Ltd (1993) 26 IPR 261
Dunstan v Rickwood (No 2) [2007] NSWCA 266; 38 Fam LR 491
EMI Songs Australia Pty Ltd v Larrikin Music Publishing Pty Ltd [2011] FCAFC 92
GJ v AS (No 4) [2017] ACTCA 7
Hancock v Rinehart (Costs) [2016] NSWSC 11
Hazeldene’s Chicken Farm Pty Ltd v Victorian WorkCover Authority (No 2) (2005) VR 435
Hughes v Western Australian Cricket Assn (Inc) (1986) 8 ATPR 40-748
James v Surf Road Nominees Pty Ltd (No 2) [2005] NSWCA 296
Leichhardt Municipal Council v Green [2004] NSWCA 341
O’Neil v Williams (costs) [2007] NSWSC 51
Oshlack v Richmond River Council [1998] HCA 11; 193 CLR 72
Southwell v Staite (No 2) [2019] ACTSC 83
Summers v Repatriation Commission (No 2) [2015] FCAFC 64

Vale v TMH Haulage Pty Ltd (1993) 31 NSWLR 70

Parties:

Karen Lee McLennan (First Plaintiff)

Andrew David Spong (Second Plaintiff)

RA Clapham, PE Green, GT Brackenreg, RW McDonald, JR Reid, J Cudmore, K Scheul, CA Murray, A Tay and A Tsirimokos t/as Meyer Vandenberg ABN 55 028 339 509 (Defendants)

Representation:

Counsel

Mr B Buckland (Plaintiffs)

Mr M Karam (Defendants)

Solicitors

J.S. O’Connor Harris & Co (Plaintiffs)

McInnes Wilson Lawyers (Defendants)

File Number:

SC 97 of 2015

McWilliam AsJ

  1. On 29 January 2019, I delivered judgment for the plaintiffs in the sum of $37,638.34 and indicated that I would hear the parties on the question of costs: McLennan v Clapham and Ors [2019] ACTSC 1 (McLennan).  Knowledge of the underlying facts of the case as set out in McLennan have been assumed for the purposes of this judgment.

  1. The parties filed competing written submissions on costs on 12 March 2019 and 11 April 2019 respectively, with the defendants filing submissions in reply on 17 April 2019.  Both parties agreed that they were prepared for the Court to deal with the question of costs on the papers.

  1. The defendants seek alternative costs orders as follows:

(a)   The plaintiffs pay the defendants’ costs of the proceeding on the ordinary basis to 10am on 23 July 2018 (being the commencement of the hearing);

(b)   Alternatively, the plaintiffs receive 50% of…

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AGLC
McLennan v Clapham (No 2) [2019] ACTSC 100
Case
[2019] ACTSC 100
Decision Date

CaseChat Overview and Summary

The case of McLennan v Clapham (No 2) involved the plaintiffs seeking to recover costs incurred in proceedings related to a dispute over a contract for the sale of property. The defendants, in turn, sought to recover costs they had incurred in defending against the plaintiffs' claims. The matter was heard in the Supreme Court of the Australian Capital Territory. The plaintiffs sought a costs order under rule 1725 of the Court Procedures Rules 2006 (ACT), arguing that the defendants were the successful party, and that it was unreasonable for them to reject a Calderbank offer.

The central legal issues the court had to address were whether the defendants were indeed the successful party, whether the Magistrates Court would have had jurisdiction to hear the proceedings brought in the Supreme Court, and whether it was unreasonable for the plaintiffs to reject a Calderbank offer. The court examined whether the defendants' success in defeating the plaintiffs' claims justified an order for the plaintiffs to pay the defendants' costs. Additionally, the court considered whether the Magistrates Court would have had jurisdiction to hear the matter, which would determine the applicability of rule 1725, and whether the plaintiffs' refusal of a Calderbank offer was reasonable.

The court held that the defendants were not the successful party as the proceedings were brought in the Supreme Court, which had jurisdiction to hear the matter. The court also found that it was not unreasonable for the plaintiffs to reject the Calderbank offer. The court ruled that the plaintiffs were entitled to recover their costs from the defendants, as the defendants were not the successful party and the Calderbank offer was not unreasonable to reject. The court ordered that the plaintiffs were to recover their costs from the defendants.

In conclusion, the court ordered that the plaintiffs were to recover their costs from the defendants. The court's decision turned on the finding that the defendants were not the successful party, and that it was not unreasonable for the plaintiffs to reject the Calderbank offer. This outcome was based on the specific circumstances of the case and the court's interpretation of the relevant legal principles.

Orders

Orders of the court

See [40]

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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