Valmont Interiors Pty Limited v Giorgio Armani Australia Pty Limited (No. 2)

Case [2021] NSWDC 9


District Court


New South Wales

Medium Neutral Citation: Valmont Interiors Pty Limited v Giorgio Armani Australia Pty Limited (No. 2) [2021] NSWDC 9
Hearing dates: Determined on the papers
Date of orders: 12 February 2021
Decision date: 12 February 2021
Jurisdiction:Civil
Before: Smith SC, DCJ
Decision:

1. The following judgments entered on 27 August 2020 be set off against each other with effect from the date of these orders:

a.   the judgment in favour of the plaintiff in the sum of $130,973.00; and

b.   the judgment in favour of the defendant on the cross-claim in the sum of $235,611.29.

2.   Order 3 made on 27 August 2020 be vacated.

3.   Save for the order referred to in order 2 above, all previous costs orders other than any adverse costs orders made against the defendant be vacated.

4.   The plaintiff pay the defendant’s costs of the proceedings on an ordinary basis up to and including 23 April 2020 and on an indemnity basis thereafter.

5.   The plaintiff is to pay the defendant’s costs of the motion.

Catchwords:

COSTS – Orders of primary judgment – set off – vacating of cost order – ordinary/indemnity basis

Legislation Cited:

Civil Procedure Act 2005, s 96

Cases Cited:

Calderbank v Calderbank [1976] Fam 93

Category:Costs
Parties: Valmont Interiors Pty Limited (ACN 117 035 864)
- Plaintiff / Cross Defendant
Giorgio Armani Australia Pty Limited (ACN 084 424 037)
- Defendant / Cross Claimant
Representation:

Counsel:
Mr M Dawson and Mr D Elliott - Plaintiff
Mr M Klooster – Defendant

Solicitors:
EMK Counsel Co – Plaintiff
Madison Marcus Law Firm – Defendant
File Number(s): 2017/184944
Publication restriction: Nil

Judgment

  1. This matter was heard by me on 20 to 24 July and 29 July 2020. On 27 August 2020 I gave judgment and made the following orders:

“1.   Judgment for the plaintiff in the amount of $130,973.

2.   Judgment for the defendant on the cross claim in the amount of $235,611.29.

3.   The plaintiff to pay 50% of the defendant’s costs as agreed or assessed.”

  1. These reasons assume some familiarity with the reasons I gave for those orders.

  2. By amended notice of motion the defendant, Armani, seeks variation of those orders so that the judgment amounts are set off against each other and an order that the plaintiff pay its costs on an ordinary basis up to 23 April 2020 or 10 July 2020 and on an indemnity basis after that date.

  3. As I explained, at [231] of my primary judgment[1] , the costs orders were made against the high degree of probability that the costs of the proceedings exceeded the amount of the judgments and the importance of not increasing those costs any further than necessary. Unfortunately, those costs have increased as the parties remain in dispute about the appropriate costs orders. Before dealing with costs, I will first deal with the issue of whether I should make any order setting off the judgments in favour of each party.

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Details
AGLC
Valmont Interiors Pty Limited v Giorgio Armani Australia Pty Limited (No. 2) [2021] NSWDC 9
Case
[2021] NSWDC 9
Decision Date

CaseChat Overview and Summary

Valmont Interiors Pty Limited was the plaintiff in a legal dispute against Giorgio Armani Australia Pty Limited, which served as the defendant. The matter pertained to a commercial disagreement that eventually reached the court. The dispute was heard and decided in the Federal Circuit and Family Court of Australia. The court was tasked with resolving the legal issues surrounding the costs of the proceedings, specifically whether certain orders should be set aside and how the costs should be allocated between the parties.

The court had to decide whether the costs orders made previously should be vacated, and if so, to what extent. Additionally, the court had to determine the basis on which the plaintiff should pay the defendant's costs, whether on an ordinary or indemnity basis. The court also needed to address the setting off of the judgments against each other and the implications of these actions on the overall cost structure of the proceedings.

In its decision, the court ordered that the judgments entered on 27 August 2020 be set off against each other, effectively reducing the plaintiff's recovery. The court vacated certain cost orders and specified that the plaintiff was to pay the defendant's costs on an ordinary basis up to a certain date and on an indemnity basis thereafter. Furthermore, the plaintiff was directed to cover the defendant's costs associated with the motion. This nuanced approach to costs was grounded in the particular circumstances of the case and the court's interpretation of the applicable legal principles.

Orders

Orders of the court

1. The following judgments entered on 27 August 2020 be set off against each other with effect from the date of these orders:

a. the judgment in favour of the plaintiff in the sum of $130,973.00; and

b. the judgment in favour of the defendant on the cross-claim in the sum of $235,611.29.

2. Order 3 made on 27 August 2020 be vacated.

3. Save for the order referred to in order 2 above, all previous costs orders other than any adverse costs orders made against the defendant be vacated.

4. The plaintiff pay the defendant’s costs of the proceedings on an ordinary basis up to and including 23 April 2020 and on an indemnity basis thereafter.

5. The plaintiff is to pay the defendant’s costs of the motion.

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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