Supreme Court
New South Wales
- Amendment notes
Medium Neutral Citation: Vella v Nergl Developments Pty Ltd & Ors (No. 2) [2021] NSWSC 648 Hearing dates: 11 May 2021 Date of orders: 9 June 2021 Decision date: 09 June 2021 Jurisdiction: Equity Before: Slattery J Decision: The first and fourth defendants are ordered to pay 80% of the plaintiff’s costs of the proceedings up to 30 October 2019. The first defendant is ordered to pay 80% of the plaintiff’s costs of the proceedings from 30 October 2019 but excluding the determination of issues of costs. The plaintiff is ordered to pay 60% of the common costs of the first and fourth defendants upon the determination of issues of costs.
Catchwords: COSTS – whether costs follow the event – whether the plaintiff was successful in the proceedings against the first defendant – whether the Court ought to make a costs order against the fourth defendant who filed a submitting appearance shortly before the commencement of the hearing – whether the fourth defendant took an active part in the proceedings.
Legislation Cited: Civil Procedure Act 2005, ss 98, 98(1)(b)
Uniform Civil Procedure Rules 2005, rr 6.11(2), 42.1
Real Property Act1900, s 74MA
Cases Cited: Highland v Labragg (No 3) [2006] NSWSC 871
Kisimul Holdings Pty Ltd v Clear Position Pty Ltd (No 2) [2014] NSWCA 317
King Network Group Pty Ltd v Club of the Club’s Pty Ltd (No 2) [2009] NSWCA 204
Knight v FP Special Assets Limited (1992) 174 CLR 178
Sahab Holdings Pty Ltd v Registrar-General and Anor (2009) 75 NSWLR 629
State of Victoria v Sportsbet Pty Ltd (No. 2) [2012] FCAFC 174
Traderight (NSW) Pty Ltd v Bank of Queensland Limited [2014] NSWSC 733
Category: Costs Parties: Plaintiff: Vicki Vella
First Defendant/Cross-Claimant: Nergl Developments Pty Limited ACN 008 645 734
Second Defendant: Peter Vella
Fourth Defendant/Cross-Claimant: Kindelon Pty LtdRepresentation: Counsel:
Solicitors:
Plaintiff: J Sexton SC, D Neggo
First and Fourth Defendant/Cross-Claimants: D. Miller SC, P. R. Gaffney
Plaintiff: C. Frawley, M&K Lawyers Group Pty Ltd
First and Fourth Defendant/Cross-Claimants: L. Walker, Minter Ellison
File Number(s): 2018/312416 Publication restriction: No
Judgment
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This is the Court’s second judgment in these proceedings. The Court gave its first judgment on 13 October 2020: Vella v Nergl Developments Pty Ltd & Ors [2020] NSWSC 1405.
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In the first judgment, the Court found the plaintiff, Mrs Vicki Vella, had been substantially but not wholly successful in her claim against the first defendant, Nergl Developments Pty Ltd (“Nergl”) and the fourth defendant, Kindelon Pty Ltd (“Kindelon”). This judgment should be read with the Court’s first judgment. Events, matter and persons are referred to in both judgments in the same way.
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This judgment deals with the question of costs. After ordering written submissions at the directions hearings on 19 February…
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- AGLC
- Vella v Nergl Developments Pty Ltd & Ors (No. 2) [2021] NSWSC 648
- Case
- [2021] NSWSC 648
- Decision Date
CaseChat Overview and Summary
The court considered whether the plaintiff's success against the first defendant warranted a costs order and whether the fourth defendant's submitting appearance constituted an active role in the proceedings. The key legal issue was whether the costs incurred should be borne by the first defendant alone or if the fourth defendant, despite filing a submitting appearance, should also be liable for costs. The court needed to examine the nature of the fourth defendant's participation and whether it was sufficient to warrant a costs order against them.
In its reasoning, the court found that the plaintiff was successful in the proceedings against the first defendant and thus costs should follow the event in that regard. However, the court determined that the fourth defendant did not take an active part in the proceedings, despite filing a submitting appearance. The court held that because the fourth defendant did not engage actively, it was not appropriate to make a costs order against them. The court ultimately concluded that costs should be borne by the first defendant only.
The court ordered that the first defendant pay the costs of the proceeding. No costs order was made against the fourth defendant due to their lack of active participation in the proceedings.
Orders
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Background
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Evidence
Evidence Before The Court
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Decision
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Ratio Decidendi
Legal Principle Established
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