Sharif v Vitruvian Investments Pty Ltd (No 5)

In the case of Sharif v Vitruvian Investments Pty Ltd (No 5), the parties involved were Mr Sharif and Vitruvian Investments Pty Ltd. The dispute primarily concerned the assessment of costs to be awarded in the proceedings, focusing on the basis for the lump sum assessment, the relevance of antecedent conduct of the parties, and whether certain costs were unreasonably incurred or unreasonable in amount. The Federal Court was tasked with deciding these legal issues.

The court addressed the issue of whether the lump sum costs should be assessed on a party-and-party or indemnity basis. The court decided that the lump sum costs should be assessed on an indemnity basis with adjustments. It considered factors such as the antecedent conduct of the parties, the reasonableness of the costs incurred, and adjustments for costs related to fee earners not listed on the High Court Register of Practitioners. The court also ruled on the apportionment of costs between the proceedings transferred from the Supreme Court and those commenced in the Federal Court, concluding that a single lump sum costs order against all defendants would not amount to a non-party costs order.

The court's reasoning led to the conclusion that the lump sum costs to be recovered by Mr Sharif on an indemnity basis should be $1,150,000 (inclusive of GST). This decision took into account several factors, including the reduction for Mr Sharif's own costs, the unsuccessful hearing on the terms of relief, costs for practitioners not on the Register of Practitioners, and the differential in counsel fees. The court further determined that the costs of the proceedings in WAD 127 of 2022 and WAD 153 of 2022 be assessed as a single set of costs, with specific allowances for costs related solely to the proceedings in WAD 153 of 2022.

The final orders mandated that in WAD 127 of 2022, the defendants pay Mr Sharif $969,061.34 (inclusive of GST) in respect of his costs, while in WAD 153 of 2022, Mr Sharif pay the defendant $118,000 (inclusive of GST) in respect of his costs.