Court of Appeal
Supreme Court
New South Wales
Medium Neutral Citation: Sims v The Commonwealth (No 2) [2023] NSWCA 30 Hearing dates: On the papers Date of orders: 23 February 2023 Decision date: 23 February 2023 Before: Bell CJ; Meagher JA; White JA Decision: (1) Vary orders 1 and 2 made by the District Court of New South Wales on 19 November 2021 as follows:
“(1) Judgment and verdict for the plaintiff in the sum of $117,253.03.
(2) Interest thereon at the rates pertaining from time to time pursuant to s 100 of the Civil Procedure Act 2005 (NSW) commencing on and from 5 February 2018 to 19 November 2021.”
(2) Set aside order 3 made by the District Court of New South Wales on 19 November 2021.
(3) The Commonwealth is to pay 75% of Mr Sims’ costs at first instance on an ordinary basis.
(4) The Commonwealth is to pay 90% of Mr Sims’ costs of the appeal on an ordinary basis.
Catchwords: COSTS – mixed outcome on appeal – where quantum of damages awarded to the respondent at first instance was substantially reduced on appeal – where principal issue on appeal was resolved in favour of the appellant – where settlement offers made by both parties before the proceedings at first instance – whether it was unreasonable for the respondent to reject the appellant’s settlement offers – appropriate costs orders with respect to the costs of the trial and the appeal
Cases Cited: Bostik Australia Pty Ltd v Liddiard (No 2) [2009] NSWCA 304
Ryde Developments Pty Ltd v The Property Investing Alliance Pty Ltd [2018] NSWCA 40
Category: Costs Parties: Jeremy Mark Sims (Appellant)
Commonwealth of Australia (Respondent)Representation: Counsel:
S Duggan (Appellant)
J Hogan-Doran SC with D Robertson (Respondent)Solicitors:
Blake Lawyers (Appellant)
Australian Government Solicitor (Respondent)
File Number(s): 2021/00358248 Publication restriction: N/A Decision under appeal
- Court or tribunal:
- District Court of New South Wales
- Jurisdiction:
- Civil
- Citation:
- Date of Decision:
- 19 November 2021
- Before:
- Weber SC DCJ
- File Number(s):
- 2019/00142574
JUDGMENT
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THE COURT: The Court gave judgment in this matter on 4 October 2022: Sims v Commonwealth of Australia [2022] NSWCA 194. An appeal was allowed and the parties were directed to formulate orders in accordance with the Court’s reasons, and to file written submissions as to costs. These short reasons addressing costs assume familiarity with our earlier reasons.
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Noting that an order has already been made allowing the appeal, the parties are agreed that the following order should also be made:
“Vary orders 1 and 2 made by the District Court of New South Wales on 19 November 2021 as follows:
(a) Judgment and verdict for the plaintiff in the sum of $117,253.03;
(b) Interest thereon at the rates pertaining from time to time pursuant to s 100 of the Civil Procedure Act 2005 (NSW) commencing on and from 5 February 2018 to 19 November 2021.”
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The Commonwealth was the plaintiff in the proceedings at first instance and…
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- AGLC
- Sims v The Commonwealth (No 2) [2023] NSWCA 30
- Case
- [2023] NSWCA 30
- Decision Date
CaseChat Overview and Summary
The Court of Appeal was required to determine the appropriate costs orders for both the trial and the appeal, given the mixed outcome. Specifically, the court had to consider whether it was unreasonable for Mr Sims to have rejected the settlement offers made by the Commonwealth before the first instance proceedings.
The Court of Appeal reasoned that while Mr Sims had achieved a judgment at first instance, the significant reduction in the damages awarded on appeal, coupled with the resolution of the principal issue in favour of the Commonwealth, warranted a departure from the usual order that costs follow the event. The court applied principles relating to the apportionment of costs in circumstances of a mixed outcome and where settlement offers may be relevant to the reasonableness of a party's conduct.
Consequently, the Court of Appeal varied the first instance orders regarding the judgment and interest awarded to Mr Sims, reducing the quantum. The court then made specific orders for costs, requiring the Commonwealth to pay 75% of Mr Sims’ costs at first instance on an ordinary basis, and 90% of Mr Sims’ costs of the appeal on an ordinary basis.
Orders
Orders of the court
(1) Vary orders 1 and 2 made by the District Court of New South Wales on 19 November 2021 as follows:
“(1) Judgment and verdict for the plaintiff in the sum of $117,253.03.
(2) Interest thereon at the rates pertaining from time to time pursuant to s 100 of the Civil Procedure Act 2005 (NSW) commencing on and from 5 February 2018 to 19 November 2021.”
(2) Set aside order 3 made by the District Court of New South Wales on 19 November 2021.
(3) The Commonwealth is to pay 75% of Mr Sims’ costs at first instance on an ordinary basis.
(4) The Commonwealth is to pay 90% of Mr Sims’ costs of the appeal on an ordinary basis.
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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