Williamson v Carneys Lawyers (No 2)

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Supreme Court


New South Wales

Medium Neutral Citation: Williamson v Carneys Lawyers (No 2) [2015] NSWSC 1175
Hearing dates:17 August 2015
Decision date: 17 August 2015
Jurisdiction:Common Law
Before: Adamson J
Decision:

1. Dismiss the plaintiff’s notice of motion filed on 10 August 2015.

 2. Order the plaintiff to pay the first and third defendants’ costs of the proceedings on an ordinary basis up to an including 22 August 2014 and on an indemnity basis thereafter.
Catchwords: COSTS – whether order for costs should be deferred until conclusion of fresh proceedings – no basis for deferral shown – costs ordered on indemnity basis from day after expiry of Calderbank offer – no question of principle
Cases Cited: Calderbank v Calderbank [1975] 3 All ER 333
Williamson v Carneys Lawyers [2015] NSWSC 1080
Category:Costs
Parties: Hugh Francis Arthur Williamson (Plaintiff)
Carneys Lawyers Pty Ltd (First Defendant)
Rabobank Australia Limited (Second Defendant)
Wallace Edward Meakes (Third Defendant)
Representation:

Counsel:
Plaintiff in person
N Polorotoff (solicitor) (First and Third Defendants)

  Solicitors:
K&L Gates (First and Third Defendants)
File Number(s):2012/00302629

Judgment

Introduction

  1. Following delivery of reasons for judgment in this matter on 5 August 2015 (Williamson v Carneys Lawyers [2015] NSWSC 1080), both the plaintiff and the first and third defendants (the defendants) applied for special costs orders. The plaintiff applied by notice of motion for an order that the costs of these proceedings be reserved pending the outcome of separate proceedings which he has filed in this Court. The defendants applied for indemnity costs associated with an offer they had made to the plaintiff on 25 July 2014, which had not been accepted.

  2. Following the hearing of these applications, I refused the plaintiff’s application and made an order, on the defendants’ application, that the plaintiff pay the defendants’ costs of the proceedings on the ordinary basis up to and including 22 August 2014 and on an indemnity basis thereafter. My reasons for these orders follow.

The plaintiff’s application that costs be reserved pending the determination of separate proceedings

  1. The plaintiff relied on an affidavit in support of his notice of motion to which was annexed a statement of claim and an amended statement of claim that he had filed in proceedings 2015/226349 in the Common Law Division of this Court (the second proceedings). In the second proceedings, which were commenced on 3 August 2015, the plaintiff claims damages against thirteen parties including several financial institutions (Bendigo and Adelaide Bank Limited, Elders Limited, Rural Bank Limited), various lawyers (including those who represented the defendants in these proceedings) as well as the defendants’ insurers.

  2. It is not necessary for the purposes of determining the plaintiff’s application to set out the allegations made in the second proceedings in any detail. It is sufficient to say that there are unparticularised allegations that some of the relevant parties were guilty of fraud and that others showed “reckless disregard for the truth of the matter”. The relevant “matter” appears to be the evidence…

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Details
Case
[2015] NSWSC 1175
Decision Date

CaseChat Overview and Summary

The case of Williamson v Carneys Lawyers (No 2) arose in the Supreme Court of New South Wales, where the plaintiff, Mr Williamson, sought an order for costs against the defendant, Carneys Lawyers, following a dispute over legal services rendered. The plaintiff alleged that the defendant had provided negligent legal advice, leading to financial losses. The defendant, in turn, argued that the plaintiff's claims were without merit and had acted in a manner that warranted a costs order against the plaintiff. The primary legal issue before the court was whether the order for costs should be deferred until the conclusion of fresh proceedings that the plaintiff intended to initiate, and if so, whether there was any basis for such a deferral. Additionally, the court needed to determine the appropriate basis for awarding costs, specifically whether the indemnity basis was suitable from the day after the expiry of a Calderbank offer made by the defendant.

The court held that there was no basis for deferring the order for costs until the conclusion of the fresh proceedings. The judge found that the plaintiff had not provided any compelling reason as to why the costs should be deferred, and that the circumstances did not present any question of principle that would warrant such a course of action. The court further determined that the costs should be awarded on an indemnity basis from the day after the expiry of the Calderbank offer. The Calderbank offer, which is a conditional offer to settle made in the hope of avoiding costs, had expired, and the plaintiff's subsequent litigation was found to be without merit. Therefore, the court ruled that the defendant was entitled to costs on an indemnity basis, reflecting the unmeritorious nature of the plaintiff's continued litigation.

In conclusion, the court found that the plaintiff's claims were without merit and that there was no justification for deferring the order for costs. The court ordered that the defendant was entitled to costs on an indemnity basis from the day after the expiry of the Calderbank offer. The plaintiff was thus required to pay the defendant's costs from that specified date, reflecting the unmeritorious nature of the plaintiff's continued litigation.

Orders

Orders of the court

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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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