JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
TITLE OF COURT : THE COURT OF APPEAL (WA)
CITATION: STRZELECKI HOLDINGS PTY LTD -v- JORGENSEN [2019] WASCA 96
CORAM: MURPHY JA
MITCHELL JA
PRITCHARD JA
HEARD: 6 NOVEMBER 2018
DELIVERED : 4 JULY 2019
FILE NO/S: CACV 25 of 2018
BETWEEN: STRZELECKI HOLDINGS PTY LTD
Appellant
AND
STEPHEN LAURENCE JORGENSEN
ROBYN MIRIEL JORGENSEN
Respondents
ON APPEAL FROM:
Jurisdiction : DISTRICT COURT OF WESTERN AUSTRALIA
Coram: EATON DCJ
File Number : CIV 1811 OF 2011
Catchwords:
Costs - Whether successful party who fails on particular issue should be deprived of costs of that issue - Relevant principles - Whether matter of unusual difficulty, complexity or importance
Costs - Indemnity costs - Calderbank offers - Whether rejection of offers unreasonable
Legislation:
District Court of Western Australia Act 1969 (WA)
District Court Rules 2005 (WA)
Legal Profession Act 2008 (WA)
Rules of the Supreme Court 1971 (WA)
Strata Titles Act 1985 (WA)
Supreme Court Act 1935 (WA)
Trade Practices Act 1974 (Cth)
Result:
Appeal upheld and costs orders made by the primary judge varied
Cross-appeal dismissed
Category: A
Representation:
Counsel:
| Appellant | : | Mr M L Bennett |
| Respondents | : | Mr N Dillon |
Solicitors:
| Appellant | : | Bennett + Co |
| Respondents | : | Murcia Pestell Hillard |
Case(s) referred to in decision(s):
Amaca Pty Ltd (formerly James Hardie and Co Pty Ltd) v Moss [2007] WASCA 162 (S)
Bowen v Alsanto Nominees Pty Ltd [2011] WASCA 39 (S)
Calderbank v Calderbank [1975] 3 All ER 333
Cardno BSD Pty Ltd v Water Corporation [No 2] [2011] WASCA 161
EMI Records Ltd v Ian Cameron Wallace Ltd [1983] Ch 59
Ford Motor Company of Australia Limited v Lo Presti [2009] WASCA 115; (2009) 41 WAR 1
Frigger v Lean [2012] WASCA 66
Hazeldene's Chicken Farm Pty Ltd v Victorian WorkCover Authority (No 2) [2005] VSCA 298; (2005) 13 VR 435
House v The King [1936] HCA 40; (1936) 55 CLR 499
McGarry v The Queen [2001] HCA 62; (2001) 207 CLR 121
Mickelberg v The State of Western Australia [2007] WASC 140 (S)
Naidoo v Williamson [2008] WASCA 179
Nikolaou v Papasavas, Phillips and Co (1989) 166 CLR 394
Norbis v Norbis (1986) 161 CLR 513
Oshlack v Richmond River Council (1998) 193 CLR 72
Owston Nominees No 2 Pty Ltd v Clambake Pty Ltd [2011] WASCA 76 (S)
Premier Building & Consulting Pty Ltd v Spotless Group Ltd (No 13) [2007] VSC 516
Re Bond Corporation Holdings Ltd (1990) 1 WAR 465
Sakari Resources Ltd v Purvis [2016] WASCA 24 (S)
Shire of Manjimup v Cheetham [2010] WASCA 225
Sino Iron Pty Ltd v Mineralogy Pty Ltd [No. 2] [2017] WASCA 76 (S)
Souter v Condor Developments Pty Ltd [2012] WASCA 227
Strzelecki Holdings Pty Ltd v Jorgensen [2016] WASCA 177
Strzelecki Holdings Pty Ltd v Jorgensen [No 3] [2015] WADC 115
Strzelecki Holdings Pty Ltd v Jorgensen [No 4] [2018] WADC 19
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- Case
- [2019] WASCA 96
- Decision Date
CaseChat Overview and Summary
The primary legal issues the court had to decide revolved around the principles governing costs in litigation, specifically whether a successful party should be deprived of costs for a particular issue where they failed on another issue. The court also had to consider whether the matter was of unusual difficulty, complexity, or importance, which would warrant an indemnity costs order. Another significant issue was whether the rejection of Calderbank offers was reasonable. A Calderbank offer is an offer to settle a case made without admission of liability, and its rejection can impact the costs order.
The Court of Appeal found that the primary judge erred in making the costs orders. The court held that the order for Strzelecki to pay two-thirds of the Jorgensens' costs up to 15 October 2013 was unreasonable given the dominance of an unsuccessful issue in the proceedings. Regarding the indemnity costs order from 16 October 2013, the Court of Appeal determined that the primary judge incorrectly identified the offers as Calderbank offers and wrongly concluded that Strzelecki's rejection of these offers was unreasonable. Consequently, the appeal was allowed, and both costs orders were set aside. The court ordered that Strzelecki pay two-thirds of the defendants' costs, including the costs of specific hearings, to be taxed if not agreed. In respect of the cross-appeal, an extension of time was granted for the filing of the cross-appeal notice, but the cross-appeal itself was dismissed.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Strzelecki and the Jorgensens sought leave to appeal, in respect of the appeal and cross-appeal respectively. The applications for leave to appeal in each case were referred to the hearing of the appeal and the cross-appeal. However, previous decisions of this Court have established that leave to appeal is not required because the appeal is from a decision of a judge of the District Court.[5] The Jorgensens require an extension of time within which to cross‑appeal, because they were one day late in filing their Notice of Cross Appeal. The Jorgensens' application for an extension of time in which to cross‑appeal was referred to the hearing of the appeal and cross‑appeal.[5] Cardno BSD Pty Ltd v Water Corporation [No 2] [2011] WASCA 161 [9] ‑ [11] (Martin CJ), [12] (Newnes JA), [95] - [102] (Murphy JA); Souter v Condor Developments Pty Ltd [2012] WASCA 227 [23] ‑ [25] (Newnes JA, Buss JA & Murphy JA agreeing). For the reasons outlined below, the appeal should be allowed, both of the Costs Orders should be set aside, and in lieu thereof there should be an order in the following terms:1.The plaintiff is to pay two thirds of the defendants' costs (including reserved costs) of the Action, including the costs of the hearing on 27 July 2017 and 6 February 2018, those costs to be taxed if not agreed. In so far as the cross-appeal is concerned, an extension of time in which to cross-appeal should be granted, but the cross-appeal should be dismissed. The long history of this Action, and its outcome, are set out in the Primary Decision, and in the Appeal Decision. However, for ease of reference, the following summary provides some context for the discussion of the issues raised in the present appeal. The Jorgensens entered into the Contract with Strzelecki to purchase the Apartment in May 2007. The Contract was conditional upon certain events occurring, one of which was the registration of the proposed strata plan which was annexed to the Contract (Contract Plan). The Contract also contained a condition that 'the purchaser acknowledges that the property is zoned tourism which limits occupancy by any individual to a maximum of 90 days' (Use Restriction). That condition reflected the fact that the land on which the Complex was to be built was zoned for tourism under the relevant planning instruments. The Jorgensens paid the agreed deposit, and the balance of the purchase price was to be paid on settlement, after the Complex was built. Between 2008 and 2010, and before the registration of a strata plan for the Complex, Strzelecki endeavoured to secure a change in the Use Restriction which applied under the relevant planning instruments. It ultimately succeeded in securing the removal of the Use Restriction in respect of some of the apartments. Strzelecki also sought to achieve the same outcome by varying the strata plan it proposed to lodge in relation to the Complex. It lodged a strata plan for registration in which the Use Restriction applied only to those apartments that it had already sold (November Plan). However, the November Plan was never registered. The strata plan which was registered (December Plan) was endorsed with a Use Restriction which applied to all of the apartments.