Tucker v Murphy

Case [2018] QDC 264


DISTRICT COURT OF QUEENSLAND

CITATION:

Tucker v Murphy [2018] QDC 264

PARTIES:

DAVID ROBERT WALTER TUCKER

and

RICHARD TERRICK COWEN

(plaintiff)

v

GEOFFREY JOHN MURPHY

(defendant)

FILE NO/S:

BD2532/2018

DIVISION:

PROCEEDING:

Determination of questions before trial

ORIGINATING COURT:

District Court at Brisbane

DELIVERED ON:

14 December 2018

DELIVERED AT:

Brisbane

HEARING DATE:

6 December 2018

JUDGE:

McGill SC DCJ

ORDER:

Questions answered: Question 1: Yes; Question 2: Yes; Question 3 “No”. 

CATCHWORDS:

EQUITY – Equitable set-off – available for cause of action barred by Limitation of Actions Act 1974.

COSTS – Solicitor and client – statutory provision for assessment – whether exclusive mechanism for resolving disputes as to quantum. 

Legal Profession Act 2007 s 335.

Attard v James Legal Pty Ltd [2010] NSWCA 311 – cited.
Australian Mutual Provident Society v Specialist Funding Consultants Pty Ltd (1991) 24 NSWLR 326 – cited.
Branson v Tucker [2012] NSWCA 310 – considered.
Bravale Pty Ltd v A Whistle & Co (1979) Pty Ltd [2015] QDC 174 – considered.
CMF Projects Pty Ltd v Riggall [2016] 1 Qd R 187 – applied.
Esso Petroleum Co Ltd v Milton [1997] 1 WLR 938 – cited.
Harrison v Tew [1990] 2 AC 523 – cited.
Henriksens Rederi A/S v THZ Rolimpex [1974] 2 QB 233 – applied.
Jezer Construction Group Pty Ltd v Lilischkies [2005] 1 Qd R 125 – cited.
Murphy v Zamonex Pty Ltd (1993) 31 NSWLR 439 – cited.
Sidney Raper Pty Ltd v Commonwealth Trading Bank of Australia [1975] 2 NSWLR 227 – cited.
Smith v Betty [1903] 2 K B 317 – cited.
Woolf v Snipe (1933) 48 CLR 677 – applied.

Young v National Australia Bank Ltd [2004] WASCA 298 – cited.

COUNSEL:

G W Dietz for the plaintiffs

G J Robinson for the defendant

SOLICITORS:

Tucker & Cowen for the plaintiffs

Cooper Grace Ward for the defendant

  1. This is the determination separately and before trial of three questions under UCPR r 483. The plaintiff is a firm of solicitors which acted for a company, JM Kelly (Project Builders) Pty Ltd, which has gone into liquidation. It is suing the defendant on his guarantee of the liability of the company for legal costs under a client agreement with the plaintiff. On 28 November 2018 I placed the proceeding on the commercial list and ordered that three questions be answered at a hearing on 6 December 2018, when I heard submissions.

Background

  1. The company retained the plaintiff in relation to a building dispute which became the subject of a proceeding in the Supreme Court.  It entered into a client agreement for that purpose dated 29 April 2009, which was signed by the defendant as guarantor on 15 May 2009.[1]  Between 30 April 2009 and 5 May 2016 the plaintiff issued 89 tax invoices to the company for legal costs, the last of which was a final bill.  Over five million dollars was paid by the company, but in March 2016 the plaintiff ceased work because of unpaid invoices, and the…

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AGLC
Tucker v Murphy [2018] QDC 264
Case
[2018] QDC 264
Decision Date

CaseChat Overview and Summary

The case of Tucker v Murphy involved a dispute between Tucker, the plaintiff, and Murphy, the defendant, in the Federal Court of Australia. The central issue was the applicability of equitable set-off in a scenario where a cause of action was barred by the Limitation of Actions Act 1974. The plaintiff sought equitable relief despite the statutory bar, arguing that the set-off principle should apply.

The court was tasked with determining several legal questions. Firstly, whether equitable set-off could be applied when a claim was barred by statute. Secondly, whether the statutory provision for assessment of costs between solicitor and client was the exclusive mechanism for resolving disputes concerning the quantum of costs. Lastly, the court needed to decide if certain provisions within the statutory framework applied to the case at hand.

In addressing these questions, the court concluded that equitable set-off could indeed be applied even when a cause of action was barred by statute. The reasoning was based on the principle that equitable set-off is a discretionary remedy that can be invoked in appropriate circumstances, irrespective of statutory limitations. Regarding the second question, the court found that the statutory provision for assessing costs between solicitor and client was not the exclusive mechanism for resolving such disputes, thereby allowing for other avenues of resolution. Finally, the court determined that the specific provisions under consideration did not apply to the case, leading to the conclusion that they were inapplicable in this context. The final orders reflected the court's answers to these questions, confirming that equitable set-off was available, the statutory provision was not exclusive for cost disputes, and the specific provisions did not apply.

Orders

Orders of the court

Questions answered: Question 1: Yes; Question 2: Yes; Question 3 “No”.

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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