Murphy v Westpac Banking Corporation (No 2)

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FEDERAL COURT OF AUSTRALIA

Murphy v Westpac Banking Corporation (No 2) [2015] FCA 266

Citation: Murphy v Westpac Banking Corporation (No 2) [2015] FCA 266
Parties: LOUISE MURPHY v WESTPAC BANKING CORPORATION
STUART MOORE v WESTPAC BANKING CORPORATION
DANIELLE LAVARS v WESTPAC BANKING CORPORATION
COREY WITTENBERG v WESTPAC BANKING CORPORATION
WILLIAM LAWSON v WESTPAC BANKING CORPORATION
LUCKY POULOS v WESTPAC BANKING CORPORATION
PAUL SMITH v WESTPAC BANKING CORPORATION
File number(s): NSD 1157 of 2009
NSD 384 of 2010
NSD 31 of 2010
NSD 90 of 2010
NSD 690 of 2010
NSD 1980 of 2011
NSD 1839 of 2011
Judge: GRIFFITHS J
Date of judgment: 27 March 2015
Catchwords: COSTS – general principles – apportionment – multiple proceedings – offer to compromise – indemnity costs
Legislation: Federal Court of Australia Act 1976 (Cth) ss 43, 51A, 37M
Federal Court Rules2011 (Cth) rr 1.34, 25.01, 25.03, 25.14, 40.01, 40.02
Cases cited: Australian Competition and Consumer Commission v Australian Safeway Stores Pty Ltd (No 3) [2002] FCA 1294 Thorne v Doug Wade Consultants Pty Ltd [1985] VR 433 Flint v Richard Busuttil & Co Pty Ltd [2013] FCAFC 131; (2013) 216 FCR 375
Elyard Corporation Pty Ltd v DDB Needham Sydney Pty Ltd (1995) 61 FCR 385
Davies and Nicol as Joint and Several Liquidators of Harris Scarfe Ltd v Chicago Boot Co Pty Ltd [2011] SASC 197
Elite Protective Personnel Pty Ltd v Salmon (No 2) [2011] NSWCA 373
Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52
Griffith v Australian Broadcasting Corporation (No 2) [2011] NSWCA 145
IFTC Broking Services Ltd v Federal Commissioner of Taxation [2010] FCAFC 31; (2010) 268 ALR 1 Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd [2009] FCAFC 40
Kazar v Kargarian [2011] FCAFC 136; (2011) 197 FCR 113
Merost Pty Ltd v CPT Custodian Pty Ltd (No 2) [2014] FCA 594
Murphy v Westpac Banking Corporation [2014] FCA 1104
New South Wales Lotteries Corporation Pty Ltd v Kuzmanovski (No 2) [2001] FCAFC 152
Port Kembla Coal Terminal Ltd v Braverus Maritime Inc (No 2) [2004] FCA 1437; (2004) 212 ALR 281
Renshaw v Queensland Mining Corporation Limited [2014] FCAFC 172
Richardson v Oracle Corporation Australia Pty Ltd (No 2) [2014] FCAFC 139
Date of hearing: 16 March 2015
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 82
Counsel for the Applicants: Mr D Pritchard SC with Mr Y Shariff
Solicitor for the Applicants: Gillis Delaney
Counsel for the Respondent: Mr M Steele SC
Solicitor for the Respondent: Allens
Table of Corrections
29 April 2015 In the orders page for NSD 31 of 2010, in Order 7, “Orders (1), (2) and (5)” is replaced with “Order 5”.  
29 April 2015 In paragraph 74, “Orders (1), (2) and (5)” is replaced with “Order 5”.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1157 of 2009

BETWEEN:

LOUISE MURPHY
Applicant

AND:

WESTPAC BANKING CORPORATION
Respondent

JUDGE:

GRIFFITHS J

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Details
Case
[2015] FCA 266
Decision Date

CaseChat Overview and Summary

Murphy v Westpac Banking Corporation (No 2) was a matter before the Federal Court of Australia involving a dispute over the costs of multiple proceedings between the parties. The applicant sought a review of the costs orders made in previous proceedings, arguing that the apportionment of costs was unreasonable and that the offer to compromise should be taken into account. The respondent, Westpac Banking Corporation, argued that the costs should be apportioned in a different manner and that the offer to compromise should not be considered. The court had to determine the appropriate apportionment of costs between the parties and whether the offer to compromise should be taken into account.

The court held that the apportionment of costs should be reconsidered, taking into account the offer to compromise. The court found that the offer to compromise was genuine and that it should be taken into account when determining the costs orders. The court also found that the apportionment of costs should be based on the principle of indemnity costs, which means that the losing party should pay the costs of the winning party. The court further held that the respondent was to pay 50 per cent of the applicant's costs for the period up to and including 11 am on 6 December 2011, and that the applicant was to pay the respondent's costs on an indemnity basis for the period after 11 am on 6 December 2011.

The court made several orders, including that judgment be entered for the applicant in various amounts, that all previous costs orders be vacated, and that the respondent pay 50 per cent of the applicant's costs for the period up to and including 11 am on 6 December 2011. The court also ordered that the applicant pay the respondent's costs on an indemnity basis for the period after 11 am on 6 December 2011, and that the respondent file and serve an interlocutory application seeking an order that its costs be paid in a fixed and specific sum rather than be quantified by taxation. The respondent's liability under the orders was to be offset against the applicant's liability, and the orders were to be stayed pending a further order or if the court ordered that costs be awarded on a lump sum basis. The court also granted liberty to apply on the giving of 48 hours' notice.

Orders

Orders of the court

1. Judgment for the applicant in the amount of $34,000 plus interest from 14 November 2008 to 2 April 2012 in the amount of $9,758.28.

2. Vacate all previous costs orders.

3. The originating application otherwise be dismissed.

4. The respondent is to pay 50 per cent of the applicant’s costs for the period up to and including 11 am on 6 December 2011.

5. The applicant is to pay the respondent’s costs on an indemnity basis for the period after 11 am on 6 December 2011.

6. Within six weeks hereof, the respondent is to file and serve an interlocutory application seeking an order that its costs under order (5) be paid in a fixed and specific sum rather than be quantified by taxation, together with any supporting affidavits.

7. The respondent’s liability under orders (1) and (4) be offset against the applicant’s liability under order (5).

8. Liberty to apply on the giving of 48 hours’ notice.

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

1. Judgment for the applicant in the amount of $67,825.57 plus interest from 11 May 2010 to 27 March 2015 in the amount of $25,025.09.

2. Vacate all previous costs orders.

3. The originating application otherwise be dismissed.

4. The respondent is to pay the applicant’s cost of and incidental to the proceedings for the period up to and including 11 am on 6 December 2011.

5. The applicant is to pay the respondent’s costs on an indemnity basis for the period from 11 am on 6 December 2011.

6. Within six weeks hereof, the respondent is to file and serve an interlocutory application seeking an order that its costs under order (5) be paid in a fixed and specific sum rather than be quantified by taxation, together with any supporting affidavits.

7. The respondent’s liability under orders (1) and (4) be offset against the applicant’s liability under order (5).

8. Orders (1) and (4) be stayed pending the earlier of a further order or if the Court orders that costs be awarded on a lump sum basis, the making of such determination.

9. Liberty to apply on the giving of 48 hours’ notice.

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

1. Judgment for the applicant in the amount of $185,288.45 plus interest from 4 December 2009 to 27 March 2015 in the amount of $74,473.90.

2. Judgment for the applicant in the amount of $80,000 plus interest from 4 December 2009 to 27 March 2015 in the amount of $32,154.81.

3. Vacate all previous costs orders.

4. The originating application otherwise be dismissed.

5. The respondent is to pay the applicant’s costs of and incidental to the proceedings, to be taxed in default of agreement and subject to (6) and (7) below.

6. If the applicant proposes to seek a lump sum costs order, she should file and serve within six weeks hereof an interlocutory application and all supporting affidavits.

7. Order (5) be stayed pending the earlier of a further order or if the Court orders that costs be awarded on a lump sum basis, the making of such determination.

8. Liberty to apply on the giving of 48 hours’ notice.

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

1. Judgment for the applicant in the amount of $50,000 plus interest from 14 November 2008 to 2 April 2012 in the amount of $14,350.41.

2. Judgment for the applicant in the amount of $228,337.50 plus interest from 27 February 2009 to 27 March 2015 in the amount of $105,007.89.

3. Vacate all previous costs orders.

4. The originating application otherwise be dismissed.

5. The respondent is to pay 75 per cent of the applicant’s costs of and incidental to the proceeding, to be taxed in default of agreement and subject to (6) below.

6. If the applicant proposes to seek a lump sum costs order, he should file and serve within six weeks hereof an interlocutory application and all supporting affidavits.

7. Liberty to apply on the giving of 48 hours’ notice.

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

1. Judgment for the applicant in the sum of $45,000 plus interest from 14 November 2008 to 2 April 2012 in the amount of $12,915.37.

2. Vacate all previous costs orders.

3. The originating application otherwise be dismissed.

4. There be no order as to costs for the period up to and including 11 am on 13 December 2011.

5. The applicant is to pay the respondent’s costs on an indemnity basis for the period after 11 am on 13 December 2011.

6. Within six weeks hereof, the respondent is to file and serve an interlocutory application seeking an order that its costs under order (5) be paid in a fixed and specific sum rather than be quantified by taxation, together with any supporting affidavits.

7. Liberty to apply on the giving of 48 hours’ notice.

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

1. The originating application be dismissed.

2. Vacate all previous costs orders.

3. There be no order as to costs for the period up to and including 11 am on 13 December 2011.

4. The applicant is to pay the respondent’s costs on an indemnity basis for the period after 11 am on 13 December 2011.

5. Within six weeks hereof, the respondent is to file and serve an interlocutory application seeking an order that its costs under order (4) be paid in a fixed and specific sum rather than be quantified by taxation, together with any supporting affidavits.

6. Liberty to apply on the giving of 48 hours’ notice.

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

1. Judgment for the applicant in the sum of $42,000 plus interest from 14 November 2008 to 2 April 2012 in the amount of $12,054.34.

2. Vacate all previous costs orders.

3. The originating application otherwise be dismissed.

4. There be no order as to costs for the period up to and including 11 am on 13 December 2011.

5. The applicant is to pay the respondent’s costs on an indemnity basis for the period after 11 am on 13 December 2011.

6. Within six weeks hereof, the respondent is to file and serve an interlocutory application seeking an order that its costs under order (5) be paid in a fixed and specific sum rather than be quantified by taxation, together with any supporting affidavits.

7. Liberty to apply on the giving of 48 hours’ notice.

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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