Rumball v Mortimore

Case [2000] WASC 126


RUMBALL & ORS -v- MORTIMORE [2000] WASC 126



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2000] WASC 126
Case No:CIV:2236/19994 FEBRUARY 2000
Coram:OWEN J16/05/00
13Judgment Part:1 of 1
Result: Defendant to pay plaintiffs' non-litigation costs
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Parties:ROBERT BRUCE RUMBALL
SUSAN ELIZABETH RUMBALL
THOMAS CARROLL ELLENBERG
CHARLES WILLIAM MORTIMORE

Catchwords:

Procedure
Costs
Recovery action by mortgagee
Indemnity costs sought but not granted
Whether costs order overrode contractual right to costs under mortgage

Legislation:

Supreme Court Rules 1971 (WA), O 66

Case References:

ANZ Banking Group (New Zealand) Ltd v Gibson [1986] 1 NZLR 556
Bank of Western Australia Limited v Ponga, unreported; (Master Sanderson) SCt of WA; Library No 980697; 2 December 1998
Citibank Savings Ltd v Nicholson, unreported; FCt SCt of SA; 1 April 1998
Cotterell v Stratton [1872] LR 8 Ch App 295
Gomba Holdings (UK) Ltd v Minories Finance Pty Ltd (No 2) [1992] 4 All ER 588
Re Shanahan (1941) 58 WN (NSW) 132
Rumball & Ors v Mortimore [1999] WASC 66
Sandtara Pty Ltd v Australian European Finance Corporation Ltd (1990) 20 NSWLR 82
Shercliffe v Engadine Acceptance Corporation Pty Ltd (No 2) (1982) 3 BPR 9207
Stobbart v Mocraj & Ors [1999] WASC 252
Union Finance Association Ltd v Howarth (1903) 4 SR (NSW) 31

Collins v Westralian Sands (1993) 9 WAR 56
Department of Health & Social Security v Envoy Farmers Ltd [1976] 1 WLR 108
Mosman Park v Walker (1991) 73 LGRA 30
Reichel v McGrath (1889) 14 App Cas 665
Somasundaram v M Julius Melchoir & Co [1988] 1 WLR 1394

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CHAMBERS
CITATION : RUMBALL & ORS -v- MORTIMORE [2000] WASC 126 CORAM : OWEN J HEARD : 4 FEBRUARY 2000 DELIVERED : 16 MAY 2000 FILE NO/S : CIV 2236 of 1999 BETWEEN : ROBERT BRUCE RUMBALL
    SUSAN ELIZABETH RUMBALL
    THOMAS CARROLL ELLENBERG
    Plaintiffs

    AND

    CHARLES WILLIAM MORTIMORE
    Defendant



Catchwords:

Procedure - Costs - Recovery action by mortgagee - Indemnity costs sought but not granted - Whether costs order overrode contractual right to costs under mortgage




Legislation:

Supreme Court Rules 1971 (WA), O 66




Result:

Defendant to pay plaintiffs' non-litigation costs




(Page 2)

Representation:


Counsel:


    Plaintiffs : Mr D J Garnsworthy
    Defendant : Mr K E Yin


Solicitors:

    Plaintiffs : Slee Anderson & Pidgeon
    Defendant : Jackson McDonald


Case(s) referred to in judgment(s):

ANZ Banking Group (New Zealand) Ltd v Gibson [1986] 1 NZLR 556
Bank of Western Australia Limited v Ponga, unreported; (Master Sanderson) SCt of WA; Library No 980697; 2 December 1998
Citibank Savings Ltd v Nicholson, unreported; FCt SCt of SA; 1 April 1998
Cotterell v Stratton [1872] LR 8 Ch App 295
Gomba Holdings (UK) Ltd v Minories Finance Pty Ltd (No 2) [1992] 4 All ER 588
Re Shanahan (1941) 58 WN (NSW) 132
Rumball & Ors v Mortimore [1999] WASC 66
Sandtara Pty Ltd v Australian European Finance Corporation Ltd (1990) 20…

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Rumball v Mortimore [2000] WASC 126
Case
[2000] WASC 126
Decision Date

CaseChat Overview and Summary

The matter before the court involved a dispute between Rumball, the plaintiff, and Mortimore, the defendant, concerning the recovery of costs incurred in an action initiated by the mortgagee. The plaintiff sought indemnity costs, which were not granted. The central issue was whether the costs order made by the court had the effect of overriding the contractual right to costs under the mortgage agreement. This case was heard in the Supreme Court of Victoria.

The legal question before the court was whether the costs order made by the court in the recovery action could override the contractual right to costs under the mortgage. Specifically, the court had to determine if the terms of the costs order took precedence over the contractual right to costs that was agreed upon by the parties at the time of the mortgage agreement. This issue was significant because it impacted the ability of the plaintiff to recover the costs incurred in the recovery action.

The court examined the relevant provisions of the mortgage agreement and the orders made in the recovery action. The court found that the costs order did not override the contractual right to costs. The court held that the contractual right to costs remained valid and enforceable, and that the costs order did not have the effect of overriding that right. The court's reasoning was based on the principle that the terms of the mortgage agreement were binding on the parties and could not be altered by subsequent court orders unless expressly stated. The court further held that the costs order was limited to the specific costs incurred in the recovery action and did not affect the contractual right to costs under the mortgage agreement.

The court ordered that the defendant pay the plaintiff's non-litigation costs, as per the terms of the mortgage agreement. The court did not grant the plaintiff's request for indemnity costs, as the court found that the costs order did not override the contractual right to costs. The court's decision clarified the scope of the costs order and affirmed the enforceability of the contractual right to costs.

Orders

Orders of the court

Defendant to pay plaintiffs' non-litigation costs

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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