WA Property Holdings Pty Ltd v Hampton Transport Services

The application in WA Property Holdings Pty Ltd v Hampton Transport Services [2017] FCA 1174 concerns an application for non-party costs in the Federal Court of Australia. Colliers International (WA) Pty Ltd applied for costs against Charles Joseph Morrone, a director of WA Property Holdings Pty Ltd, due to the latter's failure to satisfy prior costs orders. The application was determined on the papers, as neither Holdings nor Morrone opposed or consented to the proposed orders. The central legal issue before the Court was whether it was appropriate to order non-party costs against Morrone in these circumstances. The Court considered whether the criteria for exercising its discretion to award non-party costs were met, including whether Morrone had a connection with the unsuccessful party and the litigation sufficient to warrant an adverse costs order.

The Court concluded that the circumstances warranted making non-party costs orders against Morrone. The Court found that Holdings had failed to pay the taxed costs and was presumed insolvent. Morrone had a personal interest in the outcome of the litigation as he and his wife each held one of the two issued shares in Holdings. Furthermore, Morrone was the controlling mind of Holdings by virtue of being the sole director and secretary. The Court found Morrone's conduct in the litigation to be unreasonable or improper, as he played an active role in the proceedings and failed to disclose material facts that would have damaged Holdings' case. The Court found that the circumstances met the criteria for making a non-party costs order. Therefore, the Court ordered Morrone to pay Colliers' costs of the action, costs of the application, and interest on the taxed costs.