Supreme Court
New South Wales
Medium Neutral Citation: Moussa v Camden Council (No.4) [2022] NSWSC 1422 Hearing dates: 25 August 2022 Date of orders: 25 August 2022 Decision date: 25 August 2022 Jurisdiction: Common Law Before: Garling J Decision: See [24]
Catchwords: COSTS — Party/Party — Exceptions to general rule that costs follow the event — Reasonableness of the conduct of the parties — Complete capitulation by respondent one day before hearing — Motion not proceeded on — Costs ordered against respondent
Legislation Cited: Civil Liability (Third Party Claims Against Insurers) Act 2017
Cases Cited: Franpina Developments Pty Ltd v John Anthony Arena Pty Ltd [2022] NSWSC 57
Texts Cited: Not applicable
Category: Procedural rulings Parties: Danny Moussa (P/A)
Camden Council (D1)
Cornish Group Spring Farm Pty Ltd (D2)
SMEC Testing Services Pty Ltd (In Liq) (D3)
Liberty Mutual Insurance Company (R)Representation: Counsel:
Solicitors:
D Priestley SC / J Burnett (P/A)
R Oldfield (D1)
M Hall (D2)
P Gaffney (R)
Mayweathers (P/A)
McCulloch & Buggy (D1)
Marsdens Law Group (D2)
Wotton + Kearney (D3/R)
File Number(s): 2020/359004 Publication restriction: Not applicable
EX TEMPORE Judgment
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This is an application for costs by the plaintiff with respect to the finalisation of his Motion which was filed on 24 June 2022 in the class action proceedings 2020/00359004.
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The proceedings were commenced against three defendants. One of those, SMEC Testing Services Pty Ltd (In Liq) (“SMEC”) is now - and has been for some years - in liquidation. Leave to proceed against that party was granted by the Court. No appearance has been filed for SMEC, and an issue arose as to whether that company held insurance coverage with respect to the class action proceedings.
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I note, by way of background, that there are other proceedings on foot between Cornish Group Spring Farm Pty Ltd (“Cornish Group”) as plaintiff and SMEC. In those proceedings, SMEC appears. It has appointed the same solicitors to act in that matter as act for the insurer involved in this Notice of Motion. To an extent, I am prepared to infer that some indemnity has been extended to SMEC with respect to the claim made by Cornish Group.
Notice of Motion
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On 24 June 2022, the plaintiff filed a Notice of Motion in which he sought the following orders:
The plaintiff be granted leave, pursuant to s 5 of the Civil Liability (Third Party Claims Against Insurers) Act 2017, to bring proceedings pursuant to s 4 of that act against Liberty Mutual Insurance Company trading in Australia as Liberty Specialty Markets Australia with respect to the liability of the third defendant asserted in these proceedings.
The plaintiff be granted leave to file its proposed further amended statement of claim in the form annexed.
Liberty Mutual Insurance Company pay the costs of and incidental to the motion if it opposes the making of order 1.
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The Motion was listed for hearing today before me. This morning I was informed by the plaintiff that it was no longer necessary to…
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- Case
- [2022] NSWSC 1422
- Decision Date
CaseChat Overview and Summary
The legal issues before the court included whether the conduct of the parties warranted an exception to the general rule that costs follow the event. Specifically, the court had to consider whether the complete capitulation of the respondent on the eve of the hearing justified an order for costs against the respondent. The court also needed to determine the reasonableness of the conduct of both parties throughout the litigation process.
In delivering the judgment, the court found that the respondent's complete capitulation on the day before the hearing was a significant factor that warranted an exception to the usual rule regarding costs. The court considered the respondent's conduct unreasonable, particularly given that the capitulation occurred at such a late stage. As a result, the court held that it was appropriate to make a costs order against the respondent. The court emphasised that such an order was necessary to reflect the respondent's unreasonable conduct and to uphold the integrity of the legal process.
The final orders of the court included an order that the defendant, Camden Council, pay the plaintiff's costs associated with the proceedings. This decision underscored the importance of the conduct of parties in litigation and the court's role in ensuring that costs orders reflect the circumstances of each case.
Orders
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Background
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Decision
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Ratio Decidendi
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