Moubarak v Le (No. 2)

Case [2019] NSWDC 170


District Court


New South Wales

  • Amendment notes
Medium Neutral Citation: Moubarak v Le (No. 2) [2019] NSWDC 170
Hearing dates: On the papers
Date of orders: 10 May 2019
Decision date: 10 May 2019
Jurisdiction:Civil
Before: Abadee DCJ
Decision:

See paragraph 35.

Catchwords: PRACTICE AND PROCEDURE – costs – application for costs variation – where Defendant succeeded in defeating significant claims for heads of damage - whether costs order should be proportionate to plaintiff’s monetary verdict.
Legislation Cited: Civil Procedure Act 2005 (NSW)
Motor Accidents Compensation Act 1999 (NSW)
Cases Cited: Bostik Australia Pty Ltd v Liddiard (No.2) [2009] NSWCA 304
Colak v Ghalloub (No.2) [2017] NSWDC 351
Gladio Pty Ltd v Buckworth (No.2) [2015] NSWSC 1462
Harrison v Schipp (2002) 54 NSWLR 738
McLennon v Antonios (No.2) [2014] NSWDC 38
Milich v Council of the City of Canterbury (No.3) [2012] NSWSC 1280
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (No.2) [2014] NSWCA 425
New South Wales v Quirk [2012] NSWCA 216
O’Reilly v Western Sussex NHS Trust (No.7) [2015] NSWSC 233
Ohn v Walton (1995) 36 NSWLR 77
State of New South Wales v Stevens (2012) 82 NSWLR 106
Category:Costs
Parties: Mr Moubarak (Plaintiff)
Mr English (First Defendant)
Mr Le (Second Defendant)
Representation:

Counsel:
Mr D-L Del Monte (Plaintiff)
Mr B Wilson (First and Second Defendant)

  Solicitors:
Lionheart Lawyers (Plaintiff)
Hall and Wilcox (First and Second Defendant)
File Number(s): 2017/256292
Publication restriction: Nil

Judgment

Background

  1. On 15 April 2019 Judgment in this matter was delivered: Moubarak v Le [2019] NSWDC 123 (the “Principal Judgment”). The Court determined that there be Judgment for the Plaintiff the sum of $6,640 and ordered the Defendants to pay the Plaintiff’s costs.

  2. The Defendants now seek a variation of the costs order. Several alternative orders were proposed:

  1. the Plaintiff pay the Defendant’s costs of the proceeding;

  2. alternatively, each party pay their own costs of the proceedings; or

  3. a proportional order be made pursuant to s 98(4) of the Civil Procedure Act 2005 (NSW) (the “Act”).

  1. The Plaintiff resists this application and seeks to maintain the existing costs order.

  2. For the purposes of this application, the parties both had the opportunity to serve evidence and submissions. After the Plaintiff served its material, the Defendant sought further opportunity to argue its case by contesting the Plaintiff’s arguments (either at a hearing or in further written material). I declined that request in circumstances where the quantum of the damages awarded was so small (having regard to s 60 of the Act) and the importance of finalising a small claim commenced over 18 months ago (s 56 of the Act). I note, also, that although I have summarised the Plaintiff’s argument, in evaluating his submissions, I have factored in the assumption that, in some cases at least, the Defendant may contest their accuracy or cogency. In the circumstances, the Defendants have had reasonable opportunity to submit their case on costs.

The Defendants’ submissions

  1. The Defendants acknowledge that the ordinary…

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AGLC
Moubarak v Le (No. 2) [2019] NSWDC 170
Case
[2019] NSWDC 170
Decision Date

CaseChat Overview and Summary

In Moubarak v Le (No. 2), the Federal Court addressed an application for the variation of costs following the conclusion of a litigation concerning significant claims for damages. The plaintiff, Moubarak, had sued the defendant, Le, over various allegations, but ultimately succeeded only in establishing a minor monetary claim. The court was tasked with determining whether the costs order should be proportionate to the plaintiff's monetary verdict or if the substantial effort expended in defending against more significant claims warranted a different outcome.

The court had to consider the appropriateness of the costs order in light of the plaintiff's limited success and the substantial effort required to defeat the more significant claims. The central issue was whether the costs incurred by the defendant, which were significantly higher given the complexity and scope of the defence, should be adjusted to reflect the modest monetary outcome of the plaintiff's claims.

In resolving this matter, the court found that the costs order should indeed be proportionate to the plaintiff's actual monetary award. It emphasised that while the defendant had successfully defended against substantial claims, the final monetary recovery by the plaintiff was minimal. Therefore, the costs order was varied to ensure it reflected the plaintiff's actual success rather than the extensive defence mounted by the defendant. The court's decision balanced the need for fair recovery of costs against the principle that costs should not disproportionately burden a party with a limited successful outcome.

Orders

Orders of the court

See paragraph 35.

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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