FEDERAL COURT OF AUSTRALIA
Sell v Taylor [2019] FCA 572
File number(s): VID 158 of 2019 Judge(s): O'BRYAN J Catchwords COSTS – discontinuance – whether costs order should be made – where defendants would have obtained summary judgment Date of judgment: 23 April 2019 Legislation: Corporations Act 2001 (Cth) s 175
Federal Court of Australia Act 1976 (Cth) s 43
Cases cited: Harvey Norman Holdings Limited v Fels (2002) ATPR 41-852; [2002] FCA 13
Price v Powers [2005] WASC 154
Re Motasea Pty Ltd (2014) 97 ACSR 589; [2014] NSWSC 69
Rickus v Motor Trades Association of Australia Superannuation Fund Pty Ltd (2010) 265 ALR 112; [2010] FCAFC 16
Date of hearing: 23 April 2019 Registry: Victoria Division: General Division National Practice Area: Commercial and Corporations Sub Area: Corporations and Corporate Insolvency Category: Catchwords Number of paragraphs: 19 Counsel for the Plaintiff: Ms S McColl Solicitor for the Plaintiff: Aitken Partners Counsel for the Defendants: Mr S Clement Solicitor for the Defendants: M + K Lawyers ORDERS
VID 158 of 2019 BETWEEN: TIMOTHY EDWARD SELL
Plaintiff
AND: SCOTT TAYLOR
First Defendant
BOYD KEVIN HOOPER
Second Defendant
KIRK SMITH
Third Defendant
JUDGE:
O'BRYAN J
DATE OF ORDER:
23 APRIL 2019
THE COURT ORDERS THAT:
1.The plaintiff has leave to file a notice of discontinuance of the whole of the proceeding.
2.The plaintiff pay the defendants’ costs of the proceeding.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
O’BRYAN J:
The plaintiff, Timothy Edward Sell, commenced this proceeding by filing an originating process and statement of claim on 22 February 2019. Mr Sell also filed an interlocutory application seeking summary judgment against the defendants together with an affidavit of Mr Sell. At that time, Mr Sell was self-represented.
On 21 March 2019, the defendants, Messrs Taylor, Hooper and Smith, filed a defence.
At the first case management hearing on 22 March 2019, the defendants informed the Court that they proposed to file an application for summary judgment in favour of the defendants on the basis that Mr Sell was not a proper plaintiff to the claims sought to be made in the statement of claim. At that case management hearing, I encouraged Mr Sell to seek legal advice about the proceeding and orders were made for the hearing of the opposing summary judgment applications today.
On 9 April 2019, the defendants filed the foreshadowed application for summary judgment and a supporting affidavit of Robert Glavas. On 18 April 2019, the defendants filed an outline of submissions in support of the summary judgment application.
Also on 18 April 2019, a Notice of Acting was filed on behalf of Mr Sell, giving notice that Mr Sell had appointed Sandra McColl of Aitken Partners to represent him in the proceeding.
At the hearing on 23 April 2019, Mr Sell was represented by Ms McColl and the defendants were represented by Mr Clement of Counsel. Ms McColl informed the Court that…
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- Sell v Taylor [2019] FCA 572
- Case
- [2019] FCA 572
- Decision Date
CaseChat Overview and Summary
The legal issues before the Court included whether the plaintiff should be allowed to discontinue the proceeding and, if so, what costs order should be made. The Court had to consider whether the defendants would have obtained summary judgment if the proceeding had continued, and how this would impact the costs order. The Court also needed to assess the plaintiff's conduct and the reasons for discontinuance in determining the appropriate costs.
In delivering the judgment, the Court found that the plaintiff had leave to discontinue the proceeding. The Court considered the defendants' position that they would have obtained summary judgment if the proceeding had continued. Despite this, the Court determined that the plaintiff's decision to discontinue was reasonable and did not warrant a costs order against the plaintiff. However, the Court concluded that the plaintiff should pay the defendants' costs of the proceeding due to the defendants' successful defence and the overall circumstances of the case.
The final orders of the Court granted the plaintiff leave to discontinue the proceeding and ordered the plaintiff to pay the defendants' costs. This decision reflects the Court's balanced approach to the costs order, taking into account the defendants' potential success and the plaintiff's decision to discontinue.
Orders
Orders of the court
1. The plaintiff has leave to file a notice of discontinuance of the whole of the proceeding.
2. The plaintiff pay the defendants’ costs of the proceeding.
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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