Miletich v Murchie (No 2)

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FEDERAL COURT OF AUSTRALIA

Miletich v Murchie (No 2) [2012] FCA 1178

Citation: Miletich v Murchie (No 2) [2012] FCA 1178
Parties: KATHLEEN PHYLLIS MILETICH, ADRIAN MARK MILETICH and KALEL ENTERPRISES PTY LIMITED (ACN 121 109 108) v ALAN MURCHIE, WILMOT MURCHIE PTY LIMITED (ACN 103 108 603), 83 EAST PTY LIMITED (ACN 094 852 507) (IN LIQUIDATION) and STEPHEN FRANCIS DONNELLY
File number: VID 517 of 2010
Judge: GRAY J
Date of judgment: 28 September 2012
Catchwords: TRADE PRACTICES – misleading and deceptive conduct – damages – calculation – applicants settled claims against two respondents during trial – settlement included lump sum for damages and interest – judgment given against remaining two respondents – method of calculating damages and interest – settlement sum deducted from total of damages and interest to which applicants entitled – calculation of costs – amount of costs assessed as a result of settlement deducted from applicants’ total costs of proceeding
Legislation: Federal Court of Australia Act 1976 (Cth) s 51A
Date of hearing: 28 September 2012
Place: Melbourne
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 11
Counsel for the applicants: Mr MJ Deutsch
Solicitor for the applicants: Colin Biggers & Paisley
Counsel for the respondents: The respondents did not appear

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 517 of 2010

BETWEEN:

KATHLEEN PHYLLIS MILETICH
First Applicant

ADRIAN MARK MILETICH
Second Applicant

KALEL ENTERPRISES PTY LIMITED (ACN 121 109 108)
Third Applicant

AND:

ALAN MURCHIE
First Respondent

WILMOT MURCHIE PTY LIMITED (ACN 103 108 603)
Second Respondent

83 EAST PTY LIMITED (ACN 094 852 507) (IN LIQUIDATION)
Third Respondent

STEPHEN FRANCIS DONNELLY
Fourth Respondent

JUDGE:

GRAY J

DATE OF ORDER:

28 SEPTEMBER 2012

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The confidential deed of release, marked as Exhibit “MJD1 Confidential” and referred to in the affidavit of Martin John Deutsch sworn on 25 September 2012, be placed on the Court file in a sealed envelope and the sealed envelope only be opened on the order of a judge of the Court.

2.Judgment be entered for the applicants against the third and fourth respondents in the sum of $278,962.10, inclusive of interest from 22 October 2007 to the date of this order calculated at the rate determined from time to time in accordance with Practice Note CM16.

3.The third and fourth respondents pay the applicants’ costs of the proceeding, including the costs of and incidental to:

(a)       the notice of motion filed on 2 March 2011;

(b)       the interlocutory application filed on 5 October 2011;  and

(c)       the interlocutory application filed on 26 October 2011

but excluding the costs paid to the applicants by the first and second respondents, or which the applicants are entitled to receive from the first and second respondents, pursuant to clauses 3.2 and 3.4 of the confidential deed of release referred to in paragraph 1 of this order.

Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


IN THE…

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Details
Case
[2012] FCA 1178
Decision Date

CaseChat Overview and Summary

The case of Miletich v Murchie (No 2) involved the applicants, Miletich, who pursued legal action against four respondents for misleading and deceptive conduct under Australian trade practices law. The dispute was heard in the Federal Court of Australia. During the trial, the applicants settled their claims against two of the respondents, resulting in a confidential deed of release. The applicants sought damages from the remaining two respondents, the third and fourth respondents. The court was required to determine the appropriate method for calculating the damages and interest to which the applicants were entitled, taking into account the settlement with the first two respondents. Additionally, the court needed to decide on the assessment of costs, particularly deducting the costs paid by or owed to the applicants from the first two respondents from the total costs of the proceeding.

The court held that the settlement sum should be deducted from the total damages and interest to which the applicants were entitled, providing a fair and just outcome for both parties. The court also ruled that the costs paid to the applicants by the first and second respondents, or which the applicants were entitled to receive from them, should be deducted from the applicants' total costs of the proceeding. The court’s decision was grounded in the principles of fairness and equity, ensuring that the applicants were not unjustly enriched by receiving double compensation or costs.

The Federal Court entered judgment in favour of the applicants against the third and fourth respondents, awarding them $278,962.10 inclusive of interest from 22 October 2007 to the date of the order. The third and fourth respondents were ordered to pay the applicants’ costs of the proceeding, excluding those costs paid by or owed to the applicants from the first and second respondents. The court's decision ensured a balanced outcome by adjusting the damages and costs to reflect the settlement with the first two respondents.

Orders

Orders of the court

1. The confidential deed of release, marked as Exhibit “MJD1 Confidential” and referred to in the affidavit of Martin John Deutsch sworn on 25 September 2012, be placed on the Court file in a sealed envelope and the sealed envelope only be opened on the order of a judge of the Court.

2. Judgment be entered for the applicants against the third and fourth respondents in the sum of $278,962.10, inclusive of interest from 22 October 2007 to the date of this order calculated at the rate determined from time to time in accordance with Practice Note CM16.

3. The third and fourth respondents pay the applicants’ costs of the proceeding, including the costs of and incidental to:

(a) the notice of motion filed on 2 March 2011;

(b) the interlocutory application filed on 5 October 2011; and

(c) the interlocutory application filed on 26 October 2011

but excluding the costs paid to the applicants by the first and second respondents, or which the applicants are entitled to receive from the first and second respondents, pursuant to clauses 3.2 and 3.4 of the confidential deed of release referred to in paragraph 1 of this order.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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