Newell; Muriniti v De Costi

Link copied
Case Copied 75 min read

Court of Appeal


Supreme Court


New South Wales

  • Summary available
  • Amendment notes
Medium Neutral Citation: Newell; Muriniti v De Costi [2018] NSWCA 49
Hearing dates: 10 and 11 July 2017
Decision date: 20 March 2018
Before: Beazley P at [1];
Gleeson JA at [241];
White JA at [242]
Decision:

(1)   To the extent required, grant leave in each proceeding to the applicant to appeal from the orders.

 

(2)   In each proceeding, appeal allowed in part.

 

(3)   In each proceeding, cross-appeal dismissed.

 

(4)   Declare that the appellant in proceedings 2016/385849, Mr Newell, is liable to indemnify the respondents in respect of the costs incurred by the respondents by reason of:

 

(a)   the joinder of the fifth respondent as cross-defendant;

 

(b)   the filing or service of more than three versions of the cross-claim;

 

(c)   the failure to reduce the evidence in the various affidavits of Mr Wachtenheim to one affidavit or to at least many fewer affidavits than those served;

 

(d)   the making, deployment, submissions, and hearing in respect of the illegal tape recording that was the subject of the second judgment: De Costi Seafoods (No 2) including the costs of the application dealt with in De Costi Seafoods (No 2);

 

(e)   the failure to discover correspondence between Mr Newell, Mr Muriniti and Mr Shnider;

 

(f)   the affidavit of Mr Ng;

 

(g)   the allegations of impropriety against Mr Thorpe;

 

(h)   the allegations of impropriety that the respondents obtained a misleading affidavit from Mr Shnider and Mr Shnider’s evidence.

 

(5)   Declare that the appellant in proceedings 2016/382130, Mr Muriniti, is liable to indemnify the respondents in respect of the costs incurred by the respondents by reason of:

 

(a)   the joinder of the fifth respondent as cross-defendant;

 

(b)   the filing or service of more than three versions of the cross-claim;

 

(c)   the failure to reduce the evidence in the various affidavits of Mr Wachtenheim to one affidavit or to at least many fewer affidavits than those served;

 

(d)   the instructions given by Mr Muriniti to Mr Dent;

 

(e)   the false account contained in Mr Wachtenheim’s affidavit dated 15 December 2011 as to how he was alerted to the issue of the understatement of sales revenue in Mr Wachtenheim’s affidavit dated 23 August 2011;

 

(f)   the making, deployment, submissions and hearing in respect of the illegal tape recording that was the subject of the second judgment: De Costi Seafoods (No 2) including the costs of the application dealt with in De Costi Seafoods (No 2);

 

(g)   the non-production of a diary indicated by the chronology of events forwarded by Mr Muriniti to Mr Dent;

 

(h)   the failure to discover correspondence between Mr Newell, Mr Muriniti and Mr Shnider;

 

(i)   the affidavit of Mr Ng;

 

(j)   the allegations of impropriety against Mr Thorpe;

 

(k)   the allegations of impropriety that the respondents obtained a misleading affidavit from Mr Shnider and Mr Shnider’s evidence.

 

(6)   Remit both proceedings to the District Court for further hearing and determination in accordance with the above declarations and these reasons;

 (7)   Otherwise…
CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Newell; Muriniti v De Costi and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2018] NSWCA 49
Decision Date

CaseChat Overview and Summary

This matter concerned appeals from orders of the District Court of New South Wales, brought by Mr Newell and Mr Muriniti (the applicants) against De Costi Seafoods Pty Ltd and others (the respondents). The dispute arose from proceedings in the District Court where the applicants sought to indemnify the respondents for costs incurred due to the applicants' conduct. The Court of Appeal of New South Wales was required to determine whether the primary judge had erred in their approach to quantifying the indemnity costs and whether the applicants' conduct constituted "serious neglect, serious incompetence or serious misconduct" under the relevant legislation.

The Court of Appeal considered the meaning of "costs payable" in the context of legal practitioner indemnification under section 348 of the *Legal Profession Act 2004* (NSW) and section 99 of the *Civil Procedure Act 2005* (NSW). It also examined whether the primary judge had erred in applying the rule in *Jones v Dunkel* (1959) 101 CLR 298, particularly in light of the applicants' potential constraints on giving evidence due to legal professional privilege, and whether they could rely on observations made in *Medcalf v Mardell* [2003] 1 AC 120.

The Court of Appeal allowed the appeals in part, finding that the applicants were liable to indemnify the respondents for specific categories of costs. These included costs arising from the joinder of a fifth respondent, the filing of multiple versions of a cross-claim, the failure to consolidate affidavits, the handling of an illegal tape recording, the non-discovery of correspondence, the affidavit of Mr Ng, and allegations of impropriety against Mr Thorpe and Mr Shnider. The Court also found Mr Muriniti liable for costs related to instructions given to Mr Dent, a false account in an affidavit, and the non-production of a diary. The proceedings were remitted to the District Court for further hearing and determination.

Orders

Orders of the court

(1) To the extent required, grant leave in each proceeding to the applicant to appeal from the orders.

(2) In each proceeding, appeal allowed in part.

(3) In each proceeding, cross-appeal dismissed.

(4) Declare that the appellant in proceedings 2016/385849, Mr Newell, is liable to indemnify the respondents in respect of the costs incurred by the respondents by reason of:

(a) the joinder of the fifth respondent as cross-defendant;

(b) the filing or service of more than three versions of the cross-claim;

(c) the failure to reduce the evidence in the various affidavits of Mr Wachtenheim to one affidavit or to at least many fewer affidavits than those served;

(d) the making, deployment, submissions, and hearing in respect of the illegal tape recording that was the subject of the second judgment: De Costi Seafoods (No 2) including the costs of the application dealt with in De Costi Seafoods (No 2);

(e) the failure to discover correspondence between Mr Newell, Mr Muriniti and Mr Shnider;

(f) the affidavit of Mr Ng;

(g) the allegations of impropriety against Mr Thorpe;

(h) the allegations of impropriety that the respondents obtained a misleading affidavit from Mr Shnider and Mr Shnider’s evidence.

(5) Declare that the appellant in proceedings 2016/382130, Mr Muriniti, is liable to indemnify the respondents in respect of the costs incurred by the respondents by reason of:

(a) the joinder of the fifth respondent as cross-defendant;

(b) the filing or service of more than three versions of the cross-claim;

(c) the failure to reduce the evidence in the various affidavits of Mr Wachtenheim to one affidavit or to at least many fewer affidavits than those served;

(d) the instructions given by Mr Muriniti to Mr Dent;

(e) the false account contained in Mr Wachtenheim’s affidavit dated 15 December 2011 as to how he was alerted to the issue of the understatement of sales revenue in Mr Wachtenheim’s affidavit dated 23 August 2011;

(f) the making, deployment, submissions and hearing in respect of the illegal tape recording that was the subject of the second judgment: De Costi Seafoods (No 2) including the costs of the application dealt with in De Costi Seafoods (No 2);

(g) the non-production of a diary indicated by the chronology of events forwarded by Mr Muriniti to Mr Dent;

(h) the failure to discover correspondence between Mr Newell, Mr Muriniti and Mr Shnider;

(i) the affidavit of Mr Ng;

(j) the allegations of impropriety against Mr Thorpe;

(k) the allegations of impropriety that the respondents obtained a misleading affidavit from Mr Shnider and Mr Shnider’s evidence.

(6) Remit both proceedings to the District Court for further hearing and determination in accordance with the above declarations and these reasons;

(7) Otherwise order that the appeals be dismissed.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.