Supreme Court
New South Wales
Medium Neutral Citation: In the matter of Cabramatta King Tea Pty Ltd [2022] NSWSC 462 Hearing dates: Last submissions 4 April 2022 Date of orders: 14 April 2022 Decision date: 14 April 2022 Jurisdiction: Equity - Corporations List Before: Black J Decision: Plaintiff granted leave to discontinue the proceedings with no order as to costs.
Catchwords: COSTS — Party/Party — General rule that costs follow the event — Proceedings discontinued — where plaintiff sought orders requiring the preparation and audit of a financial report and directors’ report —whether there is reason to depart from the default order as to costs in rule 42.19 of the Uniform Civil Procedure Rules 2005 (NSW)
Legislation Cited: Corporations Act 2001 (Cth), s 292, s 293, s 1324
Civil Procedure Act 2005 (NSW), s 98
Uniform Civil Procedure Rules 2005 (NSW), r 42.19, r 42.20
Cases Cited: - Australian Unity Funds Management Ltd v NorthWest Healthcare Australia RE Ltd [2021] NSWSC 1039
- Australiawide Airlines Ltd v Aspirion Pty Ltd [2006] NSWCA 365 at [10], [54]
- Bitannia Pty Ltd v Parkline Constructions Pty Ltd [2009] NSWCA 32
- Champagne View Pty Ltd v Shearwater Resort Management Pty Ltd [2000] VSC 214
- Commonwealth of Australia v Gretton [2008] NSWCA 117
- Davis v Certain Lloyds Underwriters [2022] NSWSC 131
- Fordyce v Fordham (2006) 67 NSWLR 497; [2006] NSWCA 274
- Garwolin Nominees Pty Ltd v Statewide Building Society [1984] VR 469
- Heath v Greenacre Business Park Pty Ltd [2016] NSWCA 34
- McNamara v San [2010] NSWSC 809
- Metro Hotel Sydney Pty Ltd v Kol Tov Pty Ltd [2010] NSWSC 1195
- Parlby v Blair [2013] NSWSC 100
- Re Minister for Immigration and Ethnic Affairs; Ex parte Lai Qin (1997) 186 CLR 622
- Re Myao Travel Pty Ltd [2020] NSWSC 1672
- Scott v Tuff-Kote (Australia) Pty Ltd [1975] 1 NSWLR 537
Category: Costs Parties: Yuans Sunshine Pty Limited (Plaintiff)
Cabramatta King Tea Pty Ltd (Defendant)Representation: Counsel:
Solicitors:
N D Riordan (Plaintiff)
G J Gemmell (Defendant)
H & H Lawyers (Plaintiff)
Zhang Partners (Defendant)
File Number(s): 2021/48445
Judgment
Background and affidavit evidence
-
By an Originating Process filed on 19 February 2021, the Plaintiffs, Yuans Sunshine Pty Ltd (“Yuans”) sought orders under s 1324 of the Corporations Act 2001 (Cth) requiring the preparation of a financial report and directors’ report in respect of the Defendant, Cabramatta King Tea Pty Ltd (“CKT”), pursuant to ss 292-293 of the Corporations Act and the audit of that financial report. By an Interlocutory Process dated 7 February 2022, Yuans sought an order that it be granted leave to discontinue the proceedings and that CKT pay its costs of the proceedings and that Interlocutory Process. CKT in turn indicated that it sought an order that Yuans pay its costs of the proceedings, pursuant to s 98 of the Civil Procedure Act 2005 (NSW) and r 42.19(2) of the Uniform Civil Procedure…
Continue reading Re Cabramatta King Tea Pty Ltd
Sign in free to access the full text
- AGLC
- Re Cabramatta King Tea Pty Ltd [2022] NSWSC 462
- Case
- [2022] NSWSC 462
- Decision Date
CaseChat Overview and Summary
The court considered the circumstances surrounding the discontinuation of the proceedings. It observed that the plaintiff had not succeeded in its application and that the proceedings had been discontinued without any admission of liability or benefit to the plaintiff. The court also noted that the plaintiff's application for costs was made in the context of the company's voluntary liquidation, which presented a unique set of circumstances. Given these factors, the court was required to assess whether there was any reason to deviate from the standard rule regarding costs.
In evaluating the matter, the court highlighted the principle that costs generally follow the event, meaning the party who initiated the proceedings typically bears the costs unless there are exceptional circumstances. The court found that in this case, the plaintiff had not demonstrated any exceptional circumstances that would warrant a departure from the default rule. The discontinuation of the proceedings without any admission of liability or benefit to the plaintiff further supported the application of the general rule. Consequently, the court ruled that the plaintiff was not entitled to costs.
The final order of the court was that the plaintiff's application for costs was dismissed. The court confirmed that the general rule that costs follow the event applied, and there were no exceptional circumstances that would justify a different outcome in this instance.
Orders
Orders of the court
Full text does not contain this section.
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.