Pennicott Wilderness Journeys Pty Ltd v Tasmanian Cruises and Charters Pty Ltd (in liquidation)

The Federal Court of Australia dealt with a case involving Pennicott Wilderness Journeys Pty Ltd and Tasmanian Cruises and Charters Pty Ltd (in liquidation), where the latter was found to have breached certain court orders. The court was tasked with determining the appropriate penalties for the breaches and the costs associated with the proceedings. The central legal issues revolved around the quantum of penalties for civil contempt and the basis on which costs should be awarded.

The court held that the breaches were serious enough to warrant pecuniary penalties but not severe enough to justify imprisonment. The penalties imposed were $25,000 for Mr Pearce and $15,000 for Ms Jeffrey, with imprisonment in default of payment. The court emphasised the need for specific and general deterrence and noted that the penalties were reduced due to the brief duration of the breaches and the absence of previous similar conduct. The court also considered the contrition expressed by the respondents, albeit late, in mitigating the penalties.

Regarding costs, the court ruled that Pennicott Wilderness Journeys Pty Ltd was entitled to indemnity costs for the hearings and the preparation of final written submissions, as per precedents. However, the court did not consider the cross-examination concerns raised during the hearings to be sufficient grounds to deny indemnity costs. It also rejected the claim that Mr Pearce and Ms Jeffrey should be personally liable for previous costs orders against the liquidated respondent, as those orders were part of the respondent's debts. The court concluded that the costs related to the specific hearings and submissions should be paid on an indemnity basis, while other costs would be on a party and party basis.