Ponraj v Wycombe Services Pty Ltd (No 2)

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FEDERAL COURT OF AUSTRALIA

Ponraj v Wycombe Services Pty Ltd (No 2) [2023] FCA 272

File number(s): VID 727 of 2020
Judgment of: MCELWAINE J
Date of judgment: 27 March 2023
Catchwords: COSTS – whether an order for indemnity costs should be made – where respondent/cross-claimant made offers by Calderbank letters and notice of offer to compromise – where applicant/cross-respondent was unsuccessful in claim and cross-claim – indemnity costs order made pursuant to r 25.14 of the Federal Court Rules 2011 (Cth)
Legislation:

Federal Court of Australia Act 1976 (Cth) ss 43(3)(g), 51A

Federal Court Rules 2011 (Cth) rr 25.14, 39.06, 40.01, 40.02

Cases cited:

Anchorage Capital Partners Pty Ltd v ACPA Pty Ltd (No2) [2018] FCAFC 112

Calderbank v Calderbank [1975] 3 All ER 333

Coshott v Prentice (No 2) [2018] FCAFC 221

Ponraj v Wycombe Services Pty Ltd [2023] FCA 118 Zibara v Ultra Management (Sports) Pty Ltd [2021] FCAFC 4

Federal Court of Australia, Costs Practice Note (GPN-Costs)

Division: General Division
Registry: Victoria
National Practice Area: Administrative and Constitutional Law and Human Rights
Number of paragraphs: 10
Date of hearing: On the papers
Date of last submissions Respondent: 8 March 2023
Counsel for the Applicant: The Applicant appeared in person
Counsel for the Respondent: Ms J Alderson
Solicitor for the Respondent: Seyfarth Shaw Australia

ORDERS

VID 727 of 2020
BETWEEN:

DHANDAPANI PONRAJ

Applicant

AND:

WYCOMBE SERVICES PTY LTD

First Respondent

CORNERSTONE HEALTH PTY LTD

Second Respondent

AND BETWEEN:

WYCOMBE SERVICES PTY LTD

Cross-Claimant

AND:

DHANDAPANI PONRAJ

Cross-Respondent

ORDER MADE BY:

MCELWAINE J

DATE OF ORDER:

27 MARCH 2023

THE COURT ORDERS THAT:

1.There be judgment for the respondent/cross-claimant against the applicant/cross-respondent in the sum of $615,020.23, comprising judgment of $574,248.58 and interest of $40,771.65 pursuant to s 51A of the Federal Court of Australia Act 1976 (Cth), which judgment carries interest 60 days from the date of this order at the rate prescribed in r 39.06(a) and (b) of the Federal Court Rules 2011 (Cth).

2.The applicant/cross-respondent pay the respondent/cross-claimant’s costs of the claim and cross-claim:

(a)on a party and party basis up to 10.59 am on 1 June 2022 pursuant to r 40.01 of the Federal Court Rules 2011 (Cth); and

(b)on an indemnity basis from 11 am on 1 June 2022, pursuant to r 25.14 of the Federal Court Rules 2011 (Cth).

3.The assessment of the costs orders in order 2 is to be made by way of the lump sum costs procedure pursuant to r 40.02(b) of the Federal Court Rules 2011 (Cth).

4.The Registrar of the Court is directed to determine the amount of the respondent/cross-claimant’s costs in such manner as the Registrar deems fit, and shall then make an order for fixing the amount of those costs, which are to be payable within 28 days of such orders.

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

REASONS FOR JUDGMENT

MCELWAINE J:

  1. I published my reasons for judgment in this matter on 22 February…

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Details
Case
[2023] FCA 272
Decision Date

CaseChat Overview and Summary

The matter before the court involved a dispute between Ponraj, the applicant and cross-respondent, and Wycombe Services Pty Ltd, the respondent and cross-claimant. The applicant sought damages for breach of contract, while the respondent counterclaimed for unpaid invoices. Both parties were unsuccessful in their respective claims and cross-claims. The court was required to determine the issue of indemnity costs, given that the respondent had made offers by Calderbank letters and notice of offer to compromise, and the applicant was unsuccessful in both the claim and cross-claim.

The court considered whether an order for indemnity costs should be made under the Federal Court Rules 2011 (Cth). The court noted that indemnity costs may be awarded if the party against whom the order is sought has acted vexatiously, unreasonably or without merit. In this case, the court found that the applicant had acted unreasonably and without merit in pursuing the claim and cross-claim, particularly given the respondent's offers to compromise. The court also noted that the applicant had not provided a satisfactory explanation for its conduct.

Accordingly, the court made an order for indemnity costs pursuant to rule 25.14 of the Federal Court Rules 2011 (Cth). The order required the applicant to pay the respondent's costs of the claim and cross-claim on a party and party basis up until a certain time on 1 June 2022, and on an indemnity basis thereafter. The court also directed the Registrar to determine the amount of the respondent's costs and make an order for their payment within 28 days.

In addition to the costs order, the court made a judgment in favour of the respondent in the sum of $615,020.23, comprising judgment of $574,248.58 and interest of $40,771.65. The judgment carried interest at the prescribed rate for 60 days from the date of the order. The court also noted that entry of orders was dealt with in Rule 39.32 of the Federal Court Rules 2011 (Cth).

Orders

Orders of the court

1. There be judgment for the respondent/cross-claimant against the applicant/cross-respondent in the sum of $615,020.23, comprising judgment of $574,248.58 and interest of $40,771.65 pursuant to s 51A of the Federal Court of Australia Act 1976 (Cth), which judgment carries interest 60 days from the date of this order at the rate prescribed in r 39.06(a) and (b) of the Federal Court Rules 2011 (Cth).

2. The applicant/cross-respondent pay the respondent/cross-claimant’s costs of the claim and cross-claim:

(a) on a party and party basis up to 10.59 am on 1 June 2022 pursuant to r 40.01 of the Federal Court Rules 2011 (Cth); and

(b) on an indemnity basis from 11 am on 1 June 2022, pursuant to r 25.14 of the Federal Court Rules 2011 (Cth).

3. The assessment of the costs orders in order 2 is to be made by way of the lump sum costs procedure pursuant to r 40.02(b) of the Federal Court Rules 2011 (Cth).

4. The Registrar of the Court is directed to determine the amount of the respondent/cross-claimant’s costs in such manner as the Registrar deems fit, and shall then make an order for fixing the amount of those costs, which are to be payable within 28 days of such orders.

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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