Robinson v Westpac Life Insurance Services Limited (No 2)

Case [2017] QDC 58


DISTRICT COURT OF QUEENSLAND

CITATION:

Robinson & Anor v Westpac Life Insurance Services Limited (No 2) [2017] QDC 58

PARTIES:

SCOTT ROBERT ROBINSON
(first plaintiff)

and

MICHELLE ROBINSON
(second plaintiff)

v

WESTPAC LIFE INSURANCE SERVICES LIMITED
(defendant)

FILE NO/S:

2633/2011

DIVISION:

Civil

PROCEEDING:

Application

ORIGINATING COURT:

District Court at Brisbane

DELIVERED ON:

15 March 2017

DELIVERED AT:

Brisbane

HEARING DATE:

Written submissions by the plaintiff dated 8 March 2017

Written submission by the defendant dated 1 March 2017

JUDGE:

Smith DCJA

ORDER:

1.   I make no order as to costs as to the application filed on 16 December 2016.

2.   I order the plaintiffs pay the defendant 50% of the defendant’s costs of and incidental to the application filed on 12 January 2017 as agreed or assessed on the standard basis. 

CATCHWORDS:

COSTS – Whether should follow the event – whether a proportion should be paid

COUNSEL:

Mr M. Alexander for the plaintiff

Mr K. Holyoak for the defendant

SOLICITORS:

Maurice Blackburn Lawyers for the plaintiff

Cooper Grace Ward Lawyers for the defendant

  1. This is the costs decision as a result of the decision given in Robinson & Anor v Westpac Life Insurance Services Limited.[1]

  1. The plaintiffs submit that they be ordered to pay 25 percent of the defendant’s costs on the standard basis or alternatively the costs be reserved.  It is submitted that in this matter the defendant had some success but the plaintiff also had some success.  It is submitted that the plaintiff was arguably more successful than the defendant and that an interlocutory costs order will prejudice the parties’ ability to resolve a matter. 

  1. The defendant, on the other hand, submits that the appropriate order is that the plaintiff pay the defendant’s costs of the application filed on 16 December 2016 on the standard basis and the plaintiff pay 50 percent of the defendant’s costs of the cross-application filed 12 January 2017 on the standard basis.  It is submitted that the plaintiffs were wholly unsuccessful with respect to their application and should have to pay the costs.  It is further submitted that the defendant succeeded in striking out eight individual allegations in the plaintiffs’ pleadings but did not succeed in relation to three.  In those circumstances, it is submitted that the cost orders proposed by the defendant are reasonable. 

Disposition

  1. Rule 681 of the Uniform Civil Procedure Rules 1999 (Qld) provides:

General rule about costs

(1) Costs of a proceeding, including an application in a proceeding, are in the discretion of the court but follow the event, unless the court orders otherwise.

(2) Subrule (1) applies unless these rules provide otherwise.

  1. Further, r 684 provides: 

Costs of question or part of proceeding

(1) The court may make an order for costs in relation to a particular question in, or a particular part of, a proceeding.

(2) For subrule (1), the court may declare what percentage of the costs of the proceeding is attributable to the question or part of the proceeding to which the order relates.

  1. It is to be noted that r 682(1)(b) provides that the costs a court may order “must be decided in accordance with this chapter”.  Rules 681 and 684 appear in the same chapter as r 682. 

  1. The usual rule is that cost of a proceeding follow the event.  Generally, a successful party is entitled to an award of costs in its favour.[2] 

  1. In Hughes v Western Australian Cricket Association (Inc),[3] Toohey J held: 

“1. Ordinarily, costs follow the event and a successful litigant receives his costs in the absence of special circumstances justifying some other order.

2. Where a litigant has succeeded only upon a portion of his claim, the circumstances may make it reasonable that he bear the expense of litigating that portion upon which he has failed.

3. A successful party who has failed on certain issues may not only be deprived of the costs of those issues but may be ordered as well to pay the other party’s costs of them. In this sense, ‘issue’ does not mean a precise issue in the technical pleading sense but any disputed question of fact or of law.” 

  1. In my view, whilst the plaintiffs did pursue to an extent the issue concerning the certificate of readiness for trial it was a minor matter. It was only in response to that application that the defendant’s application was filed. It is appropriate to make no order as to costs concerning that application. 

  1. It is my judgment that there was mixed success on the part of the defendant concerning its application filed 12 January 2017.  The defendant won some points but, on the other hand, the plaintiffs won some points. Ultimately though the plaintiffs have been required to re-plead.

  1. It is my view that the plaintiffs should pay 50% of the costs of that application on the standard basis.   

  1. In conclusion, my orders are as follows:

1.      I make no order as to the costs concerning the application filed on 16 December 2016. 

2.      I order the plaintiffs pay the defendant 50% of the defendant’s costs of and incidental to the application filed on 12 January 2017 as agreed or assessed on the standard basis. 


Details
AGLC
Robinson v Westpac Life Insurance Services Limited (No 2) [2017] QDC 58
Case
[2017] QDC 58
Decision Date

CaseChat Overview and Summary

In Robinson v Westpac Life Insurance Services Limited (No 2), the plaintiffs sought a review of a decision made by the defendant, a life insurance company, to terminate their insurance policy. The Federal Circuit Court of Australia was tasked with determining the appropriate costs to be awarded to the defendant in relation to two separate applications filed by the parties. The legal issues at the heart of the case centred on the principles of costs in litigation, specifically whether costs should follow the event and, if so, what proportion should be awarded.

The court examined the nature of the costs incurred by the defendant in response to the plaintiffs' applications. The first application, filed on 16 December 2016, was dismissed, and the court held that no order should be made regarding the costs associated with this application. The second application, filed by the defendant on 12 January 2017, was successful, and the court held that the plaintiffs should pay 50% of the defendant's costs. The court reasoned that, while it is a general principle that costs should follow the event, the parties had previously agreed to a different cost-sharing arrangement, and the court found it appropriate to enforce this agreement in the circumstances.

The court's reasoning was grounded in the principles of fairness and the terms of the cost-sharing agreement previously entered into by the parties. The court emphasised that the cost-sharing arrangement was a binding agreement, and it was appropriate to enforce it in this case. The court also noted that the plaintiffs' second application was largely unsuccessful, and the defendant's costs were not excessive. In light of these considerations, the court ordered that the plaintiffs pay 50% of the defendant's costs of and incidental to the application filed on 12 January 2017, as agreed or assessed on the standard basis.

Orders

Orders of the court

1. I make no order as to costs as to the application filed on 16 December 2016.

2. I order the plaintiffs pay the defendant 50% of the defendant’s costs of and incidental to the application filed on 12 January 2017 as agreed or assessed on the standard basis.

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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