Veljanovski v Tortorella Pty Ltd; Tortorella Pty Ltd v Veljanovski

Case [2019] NSWCATCD 88


Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Veljanovski v Tortorella Pty Ltd; Tortorella Pty Ltd v Veljanovski [2019] NSWCATCD 88
Hearing dates: Written submissions 21 June 2019; 5 July 2019.
Date of orders: 5 August 2019
Decision date: 05 August 2019
Jurisdiction:Consumer and Commercial Division
Before: L Wilson, Senior Member
Decision:

1. The Tribunal makes an order dispensing with a hearing as to costs, pursuant to s.50 of the Civil and Administrative Tribunal Act 2013.

2. Mr Veljanovski pay Tortorella Pty Ltd’s legal costs as agreed to assessed, within 14 days of the agreement or assessment, pursuant to s.60 of the Civil and Administrative Tribunal Act 2013.

Catchwords:

COSTS – Gross sum – Indemnity costs – Mediation not a Calderbank offer

Legislation Cited:

Civil and Administrative Tribunal Act 2013 (NSW)

Civil and Administrative Tribunal Rules 2014 (NSW)

Cases Cited:

Dey v Victorian Railways Commissioners (1949) 78 CLR 62

General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125

Megerditchian v Kurmond Homes Pty Ltd [2014] NSWCATAP 120

Paraskevopoulos v Bajic (No. 2) [2018] NSWCATCD 40

Zucker v Burbank Montague Pty Ltd [2018] NSWCATAP 135

Texts Cited:

Nil

Category:Costs
Parties:

In COM19/08307:
Sasha Veljanovski (Applicant)
Tortorella Pty Ltd (Respondent)

In COM18/53438:
Tortorella Pty Ltd (Applicant)
Sasha Veljanovski (Respondent)
Representation: Solicitors:
CVC Law (Tortorella Pty Ltd)
Robert Webley & Associates (Veljanovski)
File Number(s): COM19/08307 and COM18/53438
Publication restriction: Nil

REASONS FOR DECISION

  1. Sasha Veljanovski had been the sublessor to Tortorella Pty Ltd (sublessee) in a retail lease. After the sublessee vacated the retail premises, the sublessor would not return to the sublessee the rent it had paid in advance, namely $17,636.67. A dispute about this ensued leading to the sublessee requesting a mediation with the sublessor, under Part 8 of the Retail Leases Act 1994. The sublessor refused the Registrar if Retail Tenancy Disputes offer of mediation.

  2. Therefore, on 13 December 2018 lodged an application in the Tribunal to recover his rent paid in advance and for $8,500 for the costs of undertaking repairs and restoration which the sublessee claimed he was not obliged to undertake.

  3. On 22 January 2019 the sublessee’s claim had its first directions hearing, at which time, directions were made for the sublessor to lodge his cross claim against the sublessee.

  4. On 18 February 2019 the sublessor lodged his cross claim in which he sought more than $30,000 damages from the sublessee.

  5. On 7 June 2019 the Tribunal heard and determined both claims together. Neither party was completely successful; the sublessor’s claim was dismissed in its entirety and the sublessee’s claim for $8,500 was dismissed but the sublessor was directed to repay to it the rent in advance, which constituted the bulk of the relief claimed by the sublessee.

  6. Thereafter the Tribunal offered the sublessee an opportunity to make an application for costs, followed by an opportunity for the sublessor to respond to such an application. Both parties filed submissions and evidence in accordance with those directions.

Order dispensing with…

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Details
AGLC
Veljanovski v Tortorella Pty Ltd; Tortorella Pty Ltd v Veljanovski [2019] NSWCATCD 88
Case
[2019] NSWCATCD 88
Decision Date

CaseChat Overview and Summary

In the proceedings between Veljanovski and Tortorella Pty Ltd, the dispute centred around indemnity costs following a failed mediation attempt. The case was heard by the Civil and Administrative Tribunal of New South Wales. The core issue before the tribunal was whether the mediation attempt constituted a Calderbank offer, which would have significant implications for the determination of costs.

The tribunal had to decide if the mediation proposal made by Veljanovski could be considered a Calderbank offer. This type of offer is a conditional offer to settle, made in the course of proceedings, which if rejected, results in the party making the offer being entitled to indemnity costs if they ultimately succeed. The tribunal examined the content and context of the mediation proposal, determining that it did not meet the criteria of a Calderbank offer. The proposal lacked the requisite conditions and did not unequivocally offer to settle the proceedings if the other party accepted.

Consequently, the tribunal ruled that the mediation attempt was not a Calderbank offer. As a result, Veljanovski was not entitled to indemnity costs. The tribunal ordered that Veljanovski pay the legal costs of Tortorella Pty Ltd as agreed or assessed within 14 days of the agreement or assessment. This decision underscored the importance of clear and conditional terms in any proposal intended to qualify as a Calderbank offer.

Orders

Orders of the court

1. The Tribunal makes an order dispensing with a hearing as to costs, pursuant to s.50 of the Civil and Administrative Tribunal Act 2013.

2. Mr Veljanovski pay Tortorella Pty Ltd’s legal costs as agreed to assessed, within 14 days of the agreement or assessment, pursuant to s.60 of the Civil and Administrative Tribunal Act 2013.

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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