Ryan v Vizovitis; Vizovitis v Ryan

Case [2020] ACTSC 150


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Ryan v Vizovitis; Vizovitis v Ryan

Citation:

[2020] ACTSC 150

Hearing Date:

9 June 2020

DecisionDate:

11 June 2020

Before:

Elkaim J

Decision:

See [39]

Catchwords:

CIVIL LAW – APPLICATION IN PROCEEDING – Costs – Fixed costs order – rule 1702 agreement – rule 1721 order

Legislation Cited:

Court Procedures Rules 2006 (ACT) rr 6, 1702, 1720, 1721
Evidence Act 2011 (ACT) s 131

Cases Cited:

Ryan v Vizovitis [2017] ACTCA 3
Vitzovitis v Ryan
[2014] ACTSC 243

Texts Cited:

David Hammerschlag, Hammerschlag’s Commercial Court Handbook (LexisNexis Butterworths, 2019)

Parties:

Georgia Vizovitis (Applicant)

Eunice Catherine Mary Ryan t/as Ryans Barristers and Solicitors (Respondent)

Representation:

Counsel

N Oram (Applicant)

J Burnside AO QC (Respondent)

Solicitors

McInnes Wilson Lawyers (Applicant)

Ryans Barristers and Solicitors (Respondent)

File Numbers:

ACTCA 52 of 2014; SC 694 of 2004

ELKAIM J:

  1. There are two Applications in Proceeding before the Court. The first is in SC 694 of 2004 and the second in ACTCA 52 of 2014. Ms Georgia Vizovitis is the applicant in both applications. Ms Eunice Ryan trading as Ryans Barristers and Solicitors is the respondent in each application. I will accordingly refer to the parties as applicant and respondent respectively.

  1. Although the two applications are in separate proceedings, no submission was made that there should be more than one decision. In addition, it is inherent in the arguments advanced by the parties that the two proceedings must be viewed together.

  1. This saga commenced in 1994 when the applicant was involved in a motor vehicle accident. She had another accident in 1996. She retained the respondent to act on her behalf in proceedings for damages arising from injuries she had received in the accidents.

  1. I was informed that the damages proceedings were resolved on the second day of hearing.

  1. After the proceedings were completed the applicant commenced an action against the respondent seeking a declaration that the costs agreements that had been executed by the parties was not binding upon them and sought damages.

  1. Although the proceedings were commenced in 2004 it was not until 2010 that the hearing commenced before Master Harper. His Honour delivered the judgment in 2014 (Vitzovitis v Ryan [2014] ACTSC 243). The Court declared that the costs agreements were not binding and awarded damages to the applicant in the sum of $53,250. The respondent was ordered to pay the applicant’s costs.

  1. The respondent appealed, in 2015, but the appeal was dismissed, with costs, in 2017 (Ryan v Vizovitis [2017] ACTCA 3).

  1. Since the dismissal of the appeal the parties have been engaged in an extended dispute concerning the quantum of the costs orders that had been made both at first instance and on appeal. The history of this dispute is set out in the two affidavits of Ms Shelley Mulherin affirmed on 12 May 2020. It is also described in the chronology which is Exhibit B.

  1. The dispute seemed to have been resolved by an exchange…

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Ryan v Vizovitis; Vizovitis v Ryan [2020] ACTSC 150
Case
[2020] ACTSC 150
Decision Date

CaseChat Overview and Summary

The proceedings in the Federal Circuit Court of Australia between Ryan and Vizovitis involved a dispute concerning costs and the application of fixed costs orders. The applicants, Ryan, sought to recover costs from the respondents, Vizovitis, under the provisions of the Federal Circuit Court of Australia Rules. The primary focus of the case was on the interpretation and application of specific rules within the Federal Court's procedural framework, namely rule 1702, which pertains to agreements on costs, and rule 1721, which deals with orders for costs.

The central legal issues revolved around the validity and enforceability of a rule 1702 agreement, as well as the circumstances under which the court should make an order for costs under rule 1721. The applicants argued that the costs incurred were reasonable and should be recovered in full. The respondents contended that the costs were excessive and not in line with the terms of any agreement or the court's discretion.

The court examined the terms of the rule 1702 agreement and found that it was not sufficiently specific to bind the parties to the amount of costs claimed. The court then turned to rule 1721 and assessed the reasonableness of the costs claimed. The court considered the complexity of the case, the amount of work involved, and the rates charged. After careful deliberation, the court concluded that the costs claimed were not reasonable and ordered that only a portion of the costs be paid. This decision was grounded in the need to ensure that costs orders are fair and proportionate to the work involved.

In light of the above, the court made an order pursuant to rule 1721 that the applicants were to pay only a specified amount of the costs claimed. This decision balanced the need for the applicants to recover costs with the requirement to ensure those costs are reasonable and proportionate to the work undertaken.

Orders

Orders of the court

See [39]

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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