SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY
Case Title: | Mohamed v Adrija Pty Ltd (No 3) |
Citation: | [2022] ACTSC 256 |
Hearing Dates: | 26 August 2022 |
DecisionDate: | 20 September 2022 |
Before: | McWilliam AsJ |
Decision: | 1. The respondent is to pay the appellants’ costs of the appeal. 2. The appellants are to pay 10% of the respondent’s costs of the proceeding in the court below. |
Catchwords: | COSTS – APPLICATION FOR COSTS – whether a special costs order should be made – where appellants were successful on appeal – where a Calderbank offer was made in relation to the proceeding in the court below – where respondent awarded damages on appeal – where quantum of damages awarded exceeded the earlier offer of settlement – whether it was unreasonable for the appellants to reject the settlement offer – whether respondent ought be deprived of its costs where the only claim on which the respondent succeeded occupied a minor part of the proceeding in the court below |
Legislation Cited: | Court Procedures Rules 2006 (ACT) r 1721 |
Cases Cited: | Calderbank v Calderbank[1975] 3 All ER 333 Cooper v Singh [2017] ACTCA 21 Waters v PC Henderson (Australia) Pty Ltd [1994] NSWCA 338; 254 ALR 328 |
Parties: | Abdiwahaab Barkhadle Mohamed (First Appellant) Sagal Ahmed (Second Appellant) Adrija Pty Ltd (ACN 119 998 720) (Respondent) |
Representation: | Counsel A Bartzis (Appellants) S Onitiri (Respondent) |
| Solicitors Starnet Legal Pty Ltd (Appellants) WMG Legal (Respondent) | |
File Number: | SCA 2 of 2020 |
McWilliam AsJ:
The application before the Court concerns the costs orders to be made following the judgment delivered in respect of an appeal from the Magistrates Court: see Mohammed v Adrija (No 2) [2022] ACTSC 89. The underlying dispute between the parties was a residential building dispute. The builder (the respondent) claimed moneys following the contract coming to an end, and the owners (the appellants) counter-claimed against the builder in relation to the work that was carried out.
The appeal was successful. The judgment in the court below (in the sum of $244,703.56) was set aside. Judgment was instead entered for $88,058.00, plus interest payable in the sum of $55,623.83. The details and issues that were in dispute and how they were resolved will not be repeated here.
Following that result, the respondent has sought that the parties each pay their own costs of the appeal and that the appellants pay…
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- Case
- [2022] ACTSC 256
- Decision Date
CaseChat Overview and Summary
The court examined the principles governing costs in the context of a Calderbank offer. It considered the circumstances surrounding the offer and the appellants' decision to reject it. The court noted that the rejection was not unreasonable given the potential for a more favourable outcome on appeal. Additionally, the court assessed the proportion of the proceeding that the successful claim occupied. It concluded that the successful claim was a minor part of the overall proceeding and, therefore, the respondent should not be deprived of its costs.
In its reasoning, the court highlighted the importance of proportionality in assessing costs orders, particularly in relation to Calderbank offers. It determined that the appellants' success on appeal did not warrant a departure from the usual costs order, where the successful party is entitled to costs. The court found that the appellants' rejection of the settlement offer was reasonable and that the respondent should not be penalised for the minor nature of its successful claim.
The final orders were that the respondent was to pay the appellants’ costs of the appeal and that the appellants were to pay 10% of the respondent’s costs of the proceeding in the court below. This outcome reflected the court's consideration of the principles of proportionality and the reasonableness of the appellants' decision to reject the settlement offer.
Orders
Orders of the court
1. The respondent is to pay the appellants’ costs of the appeal.
2. The appellants are to pay 10% of the respondent’s costs of the proceeding in the court below.
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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