Mills v Walsh (Costs)

Case [2023] NSWCA 97


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Mills v Walsh (Costs) [2023] NSWCA 97
Hearing dates: On the papers; written submissions closed 9 February 2023
Date of orders: 16 May 2023
Decision date: 16 May 2023
Before: Bell CJ at [1];
White JA at [2];
Brereton JA at [19]
Decision:

(1) Vary order (2) made on 8 December 2022 to read as follows: “(2)   Order that the appellant and the second respondent pay the first respondent’s costs of the appeal up to and including 6 September 2022 and that the appellant pay the first respondent’s costs of the appeal thereafter.”

Catchwords:

COSTS – Party/Party – Proceedings discontinued or dismissed – Court’s discretion – Proceedings discontinued by one appellant – Where discontinuing appellant by her conduct ratified conduct of solicitors in filing an appeal in her name – Whether fair and reasonable to otherwise order discontinuing appellant not jointly and severally liable for costs up to date of discontinuance – No basis to displace usual order as to costs

Legislation Cited:

Civil Procedure Act 2005 (NSW), s 98

Uniform Civil Procedure Rules 2005 (NSW), rr 42.19, 51.56

Cases Cited:

Bitannia Pty Ltd v Parkline Constructions Pty Ltd [2009] NSWCA 32

Fordyce v Fordham (2006) 67 NSWLR 497; [2006] NSWCA 274

Category:Costs
Parties: David Mills (Appellant)
Haiden Walsh (First Respondent)
Crystal Zhang (Second Respondent)
Representation:

Counsel:

H Woods (Appellant)
N Kabilafkas (Second Respondent)

Solicitors:

JCL Legal (Appellant)
Gerges Law Group (First Respondent)
Juris Cor Legal (Second Respondent)
File Number(s): 2022/9246
Publication restriction: N/A
 Decision under appeal 
Court or tribunal:
District Court of NSW
Jurisdiction:
Civil
Citation:

[2021] NSWDC 655

Date of Decision:
17 December 2021
Before:
Weber SC DCJ
File Number(s):
2019/17715

HEADNOTE

[This headnote is not to be read as part of the judgment]

The appellant Mr Mills and his estranged wife the second respondent Ms Zhang commenced an appeal in this Court against the first respondent Mr Walsh. Ms Zhang authorised solicitors Coleman & Greig to file a Notice of Intention to Appeal, however, did not respond to the fee proposal and draft Notice of Appeal sent by her solicitors, which was then filed. Whilst there were some communications with her solicitors, Ms Zhang did not clearly and unequivocally give instructions to discontinue the appeal until 2 September 2022. At the outset of the hearing of the substantive appeal on 6 September 2022, the Court made orders granting leave to Ms Zhang to discontinue the proceedings. The appeal was dismissed on 8 December 2022, and Mr Mills – pursuant to leave reserved by the Court when delivering judgment – seeks an order having the effect that Ms Zhang be liable jointly and severally with him for the costs of Mr Walsh, up to and including 6 September 2022.

Held, per White JA at [18] and Brereton JA at [28]; Bell CJ at [1] agreeing):

As to whether Ms Zhang authorised the appeal:

1. Ms Zhang by her conduct ratified the conduct…

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Mills v Walsh (Costs) [2023] NSWCA 97
Case
[2023] NSWCA 97
Decision Date

CaseChat Overview and Summary

In *Mills v Walsh (Costs)*, the Court of Appeal of New South Wales considered an application for costs following the discontinuance of an appeal. The dispute concerned the liability for costs when one appellant, by her conduct, had ratified the filing of an appeal in her name by her solicitors, despite later discontinuing her participation in the proceedings. The court was asked to determine whether it was fair and reasonable to depart from the usual order regarding costs in such circumstances.

The central legal issue before the court was whether the discontinuing appellant should be held jointly and severally liable for the costs incurred by the first respondent up to the date of discontinuance, notwithstanding the discontinuance itself. This required the court to consider the scope of its discretion in awarding costs and the principles that guide the determination of fairness and reasonableness when an appellant has, through their actions, affirmed the initiation of an appeal.

The court reasoned that the usual order for costs should generally apply unless there is a specific basis to displace it. In this instance, the conduct of the discontinuing appellant in ratifying the filing of the appeal meant that she was responsible for the costs incurred up to the point of discontinuance. The court found no compelling reason to depart from this principle. Consequently, the court varied the previous order, stipulating that the appellant and the second respondent were to pay the first respondent’s costs of the appeal up to and including 6 September 2022, and that the appellant alone was to pay the first respondent’s costs of the appeal thereafter.

Orders

Orders of the court

(1) Vary order (2) made on 8 December 2022 to read as follows: “(2) Order that the appellant and the second respondent pay the first respondent’s costs of the appeal up to and including 6 September 2022 and that the appellant pay the first respondent’s costs of the appeal thereafter.”

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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