Sharma v Segal - [2020] NSWDC 121

District Court

New South Wales

Amendment notes

Medium Neutral Citation: Sharma v Segal [2020] NSWDC 121
Hearing dates: 25, 26 March 2020
Date of orders: 22 April 2020
Decision date: 22 April 2020
Jurisdiction: Civil
Before: Russell SC DCJ
Decision:
(1)   Judgment for the plaintiff Praneal Dutt Sharma against the defendants Phillip Segal and Melita Segal for $126,239.90.
(2)   Order the defendants Phillip Segal and Melita Segal to pay the costs of the plaintiff Praneal Dutt Sharma.
(3)   Judgment on the cross-claim for the first cross-defendant Praneal Dutt Sharma.
(4)   Order the cross-claimant Phillip Segal to pay the costs of the first cross-defendant Praneal Dutt Sharma.
(5)   No order in relation to the second cross-defendant South West Radiology Pty Limited.

Catchwords:
COSTS – Costs from earlier litigation assessed and paid – costs later reduced upon review – action for recovery of overpayment – whether initial payment was part of accord and satisfaction so as to preclude recovery of overpayment – held: payment was not part of an accord and satisfaction but was made to discharge the liability created by first costs assessment

ASSIGNMENT OF DEBT – assignment of debt said to be owing by cross-defendant to a trust – whether a debt was in fact owed by cross-defendant to trust – whether a deed setting out commercial arrangements imposed a personal obligation on cross-defendant to fund part of losses of the trust – general principles of interpretation of commercial agreements – held: deed imposed no obligation on cross defendant personally – held: no right of recovery by trustee against cross-defendant – no debt capable of assignment to cross-claimant
WORDS AND PHRASES – mutatis mutandis
Cases Cited: Cherry v Steele-Park [2017] NSWCA 295
Empirnall Holdings Pty Limited v Machon Paull Partners Pty Limited (1988) 14 NSWLR 523
Jaeger v Bowden (No 2) [2016] NSWSC 897
McDermott v Black [1940] HCA 4; (1940) 63 CLR 161
Sharma v Segal and Chen [2017] NSWSC 867; [2017] NSWSC 973
Victoria v Tatts Group Limited [2016] HCA 5; (2016) 90 ALJR 392
Texts Cited: LexisNexis Concise Australian Legal Dictionary (5th Edition, 2015)
Category: Principal judgment
Parties: Praneal Dutt Sharma (Plaintiff)
Phillip Segal (First Defendant)
Melita Segal (Second Defendant)
Phillip Segal (Cross-Claimant)
Praneal Dutt Sharma (First Cross-Defendant)
South West Radiology Pty Ltd (Second Cross-Defendant)
Representation: Counsel:
E Finnane (Plaintiff/First Cross-Defendant)
G Gee (Defendants/Cross-Claimant)
Solicitors:
Carneys Lawyers (Plaintiff/First Cross-Defendant)
Clayton Utz (Defendants/Cross-Claimant)

File Number(s): 2018/363590

Judgment

Introduction

These proceedings involve litigation arising from earlier litigation between the same parties. Robert Fripp once said:

“Being a professional musician doesn’t mean that you spend 12 hours a day playing music. It means you spend up to 12 hours a day taking care of business, dealing with litigation, with the various characters who’ve stolen your interests, or fending off hostile law suits from former members of the band.”

While Mr Fripp was speaking of his time as a member of King Crimson, similar thoughts have probably occurred to some, if not all, of those involved in this…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Sharma v Segal

Details

AGLC: Sharma v Segal [2020] NSWDC 121
Case: [2020] NSWDC 121
Decision Date: 22 April 2020

CaseChat Overview and Summary

Sharma v Segal involved a multifaceted dispute concerning the recovery of costs, the assignment of a debt, and the interpretation of commercial agreements. Sharma, the plaintiff, sought to recover an overpayment of costs from Segal and his wife, Melita. The Segals argued that the overpayment had been made in satisfaction of their obligations, precluding any further recovery. Sharma also sought to recover a debt that was allegedly owed by Segal and assigned to him by a trust. Segal contended that no personal obligation existed and that the deed in question did not impose such an obligation.

The legal issues before the court centred on whether the initial payment constituted an accord and satisfaction, thereby barring any recovery of the overpayment. Additionally, the court had to determine if a debt existed that could be assigned to Sharma by the trust and if the deed imposed any personal liability on Segal. The court examined the principles of contract interpretation, focusing on the terms of the commercial agreements and whether they created personal obligations for Segal.

In its reasoning, the court found that the initial payment was not part of an accord and satisfaction but rather a payment made to discharge the liability created by the first costs assessment. The court held that Sharma was entitled to recover the overpayment. Regarding the assignment of debt, the court concluded that the deed did not impose any personal obligation on Segal to fund the trust's losses. As such, no personal liability existed, and no debt was capable of assignment to Sharma.

The final orders of the court were that Sharma was to be paid $126,239.90 by Segal and Melita, with the Segals ordered to pay Sharma's costs. The court dismissed Sharma's cross-claim against Segal, ordering Segal to pay Sharma's costs in relation to the cross-claim. No order was made in relation to the second cross-defendant, South West Radiology Pty Limited.

Orders

Orders of the court

(1) Judgment for the plaintiff Praneal Dutt Sharma against the defendants Phillip Segal and Melita Segal for $126,239.90.

(2) Order the defendants Phillip Segal and Melita Segal to pay the costs of the plaintiff Praneal Dutt Sharma.

(3) Judgment on the cross-claim for the first cross-defendant Praneal Dutt Sharma.

(4) Order the cross-claimant Phillip Segal to pay the costs of the first cross-defendant Praneal Dutt Sharma.

(5) No order in relation to the second cross-defendant South West Radiology Pty Limited.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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Medium Neutral Citation:	Sharma v Segal [2020] NSWDC 121
Hearing dates:	25, 26 March 2020
Date of orders:	22 April 2020
Decision date:	22 April 2020
Jurisdiction:	Civil
Before:	Russell SC DCJ
Decision:	(1) Judgment for the plaintiff Praneal Dutt Sharma against the defendants Phillip Segal and Melita Segal for $126,239.90. (2) Order the defendants Phillip Segal and Melita Segal to pay the costs of the plaintiff Praneal Dutt Sharma. (3) Judgment on the cross-claim for the first cross-defendant Praneal Dutt Sharma. (4) Order the cross-claimant Phillip Segal to pay the costs of the first cross-defendant Praneal Dutt Sharma. (5) No order in relation to the second cross-defendant South West Radiology Pty Limited.
Catchwords:	COSTS – Costs from earlier litigation assessed and paid – costs later reduced upon review – action for recovery of overpayment – whether initial payment was part of accord and satisfaction so as to preclude recovery of overpayment – held: payment was not part of an accord and satisfaction but was made to discharge the liability created by first costs assessment ASSIGNMENT OF DEBT – assignment of debt said to be owing by cross-defendant to a trust – whether a debt was in fact owed by cross-defendant to trust – whether a deed setting out commercial arrangements imposed a personal obligation on cross-defendant to fund part of losses of the trust – general principles of interpretation of commercial agreements – held: deed imposed no obligation on cross defendant personally – held: no right of recovery by trustee against cross-defendant – no debt capable of assignment to cross-claimant WORDS AND PHRASES – mutatis mutandis
Cases Cited:	Cherry v Steele-Park [2017] NSWCA 295 Empirnall Holdings Pty Limited v Machon Paull Partners Pty Limited (1988) 14 NSWLR 523 Jaeger v Bowden (No 2) [2016] NSWSC 897 McDermott v Black [1940] HCA 4; (1940) 63 CLR 161 Sharma v Segal and Chen [2017] NSWSC 867; [2017] NSWSC 973 Victoria v Tatts Group Limited [2016] HCA 5; (2016) 90 ALJR 392
Texts Cited:	LexisNexis Concise Australian Legal Dictionary (5th Edition, 2015)
Category:	Principal judgment
Parties:	Praneal Dutt Sharma (Plaintiff) Phillip Segal (First Defendant) Melita Segal (Second Defendant) Phillip Segal (Cross-Claimant) Praneal Dutt Sharma (First Cross-Defendant) South West Radiology Pty Ltd (Second Cross-Defendant)
Representation:	Counsel: E Finnane (Plaintiff/First Cross-Defendant) G Gee (Defendants/Cross-Claimant) Solicitors: Carneys Lawyers (Plaintiff/First Cross-Defendant) Clayton Utz (Defendants/Cross-Claimant)
File Number(s):	2018/363590