Osaka Enterprises Pty Limited v Seaview Pacific Pty Limited (No 2)

Case [2010] QSC 186


SUPREME COURT OF QUEENSLAND

CITATION:

Osaka Enterprises Pty Limited v Seaview Pacific Pty Limited (No 2) [2010] QSC 186

PARTIES:

OSAKA ENTERPRISES PTY LIMITED ACN 062 874 560

(Plaintiff)

v

SEAVIEW PACIFIC PTY LIMITED ACN 112 132 939

(Defendant)

FILE NO/S:

9806 of 2009

DIVISION:

Trial Division

PROCEEDING:

Application

ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON:

31 May 2010

DELIVERED AT:

Brisbane

HEARING DATE:

Written submissions

JUDGE:

McMurdo J

ORDER:

The plaintiff is to pay the defendant’s costs of the proceedings.

CATCHWORDS:

PROCEDURE – COSTS – GENERAL RULE – COSTS FOLLOW THE EVENT – COSTS OF WHOLE ACTION – GENERALLY – where the proceedings were determined in the defendant’s favour – where four defences were raised but only one was upheld – whether this case is an exception to the general rule that costs should follow the event.

Uniform Civil Procedure Rules 1999 (Qld) r 681, cited

Australand Corporation (Qld) Pty Ltd v Johnson & Ors [2007] QSC 128, cited
Osaka Enterprises Pty Limited v Seaview Pacific Pty Limited [2010] QSC 112, cited

Waterman v Gerling Australia Insurance Co Pty Ltd (No 2) [2005] NSWSC 1111, cited

COUNSEL:

N O’Bryan SC with S E Brown for the plaintiff

M D Martin for the defendant

SOLICITORS:

J M Goncalves for the plaintiff

Tucker & Cowen Solicitors for the defendant

  1. This judgment concerns the costs of the proceedings which I determined in the defendant’s favour.[1]  The plaintiff’s claim was dismissed and I gave judgment for the defendant on its counterclaim.  The defendant seeks its costs of the proceedings to be assessed upon the standard basis.  The plaintiff concedes that it should pay some of the defendant’s costs, but only to the extent of 70 per cent. 

  1. The plaintiff’s argument is that of the four defences which were raised,[2] only one was upheld.  Further, it is said that one of the others was without any foundation, because it was clearly precluded by an estoppel.[3]  The question then is whether those circumstances make this case an exception to the general rule that costs should follow the event.[4]  The fact that a successful party has failed on some of its arguments is not in itself a basis for departing from the general rule.[5]

    [2]See Ibid, [2].

    [3]Ibid, [40].

    [4]Uniform Civil Procedure Rules 1999 (Qld) r 681.

  1. The hearing occupied one day.  But it may be accepted that the defendant’s costs were somewhat higher for having advanced these other arguments.  Nevertheless, none of the arguments, including that singled out by the plaintiff in this context, was so hopeless as to justify some impact upon the ordinary rule as to costs.  Importantly, the extent of the evidence, and therefore the cost involved in its preparation and presentation, would not have been significantly different had only the successful point been argued.  In my conclusion the plaintiff should pay the defendant’s costs of the proceedings to be assessed.


Details
AGLC
Osaka Enterprises Pty Limited v Seaview Pacific Pty Limited (No 2) [2010] QSC 186
Case
[2010] QSC 186
Decision Date

CaseChat Overview and Summary

Osaka Enterprises Pty Limited sought to recover damages against Seaview Pacific Pty Limited in a dispute arising from a failed business arrangement. The matter was heard in the Supreme Court of Queensland, where Seaview Pacific successfully defended the action on one of the four defences raised. Following the successful defence, Seaview Pacific applied for costs under the general rule that costs follow the event. This rule typically means that the losing party in litigation pays the winning party's costs. However, Osaka Enterprises argued that the case should be considered an exception to this general rule because multiple defences were raised and only one was upheld.

The court was required to determine whether the presence of multiple defences, of which only one was successful, constituted a sufficient ground to depart from the established principle that costs follow the event. The court considered whether the multiple defences contributed to the overall complexity of the case and the length of the proceedings, potentially justifying a different costs allocation. In examining the specific circumstances, the court assessed the nature of the defences, the effort expended by each party, and the outcome of the proceedings.

After careful consideration, the court found that the case did not present exceptional circumstances warranting a deviation from the general rule. The court determined that the procedural history and the nature of the successful defence did not justify a departure from the principle that costs follow the event. Consequently, the court ruled that Osaka Enterprises should bear the costs of the proceedings. This decision affirmed the application of the general rule of costs allocation in cases where the defendant successfully defends on one of multiple raised defences.

The plaintiff is ordered to pay the defendant's costs of the proceedings. This includes the costs associated with the entire action, as the defendant was successful in its defence. The order reflects the court's adherence to the established principle that, absent exceptional circumstances, costs follow the event.

Orders

Orders of the court

The plaintiff is to pay the defendant’s costs of the proceedings.

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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