Yu v Cao

Case [2015] NSWCA 276


Court of Appeal


Supreme Court


New South Wales

  • Summary available
  • Amendment notes
Medium Neutral Citation: Yu v Cao [2015] NSWCA 276
Hearing dates:19 November 2014
Date of orders: 14 September 2015
Decision date: 14 September 2015
Before: McColl JA at [1]; Sackville AJA at [187]; Adamson J at [191]
Decision:

(1)   Grant leave to appeal;
(2)   Appellant to file the notice of appeal in the form of the draft appearing in the White Book at page 235 within seven days;
(3)   Appeal allowed;
(4)   Set aside the orders made by Walmsley ADCJ on 20 March 2014;
(5)   Dismiss the respondent’s notice of motion filed on 25 September 2013 insofar as it sought orders against the appellant with costs;
(6) Respondent to pay the appellant’s costs of the application for leave to appeal and of the appeal and to have a certificate under the Suitors’ Fund Act 1951 (NSW) if otherwise qualified.

Catchwords:

Procedure – costs – s 98, Civil Procedure Act 2005 (NSW) – costs order against non-party – where plaintiff allegedly defamed in email sent from email address appearing to be defendant’s – where email in fact composed and sent by defendant’s husband –where plaintiff instructed solicitors to advise in relation to defamation proceedings – where plaintiff immediately saw email as work of defendant’s husband – where solicitors commenced defamation proceedings against defendant – where defendant denied publishing email – where plaintiff frequently sought advice from solicitors as to joining defendant’s husband – defendant’s husband not joined – where at trial defendant’s husband gave evidence he composed and sent email from email address appearing to be defendant’s – where trial judge found plaintiff failed to prove defendant published the email – where trial judge found defendant’s husband obvious alternative defendant – whether trial judge erred in exercising discretion to award non-party costs in ordering defendant’s husband to pay costs plaintiff was ordered to pay defendant and costs for which plaintiff liable to solicitors

  Procedure – costs order against non-party – principles for exercising discretion to award costs against non-party – relevant circumstances
Legislation Cited: Civil Procedure Act 2005 (NSW)
Defamation Act 2005 (NSW)
Evidence Act 1995 (NSW)
Legal Profession Act 2004 (NSW),
Limitation Act 1969 (NSW)
Suitors’ Fund Act 1951 (NSW)
Supreme Court Act 1970 (NSW)
Uniform Civil Procedure Rules 2005 (NSW)
Cases Cited: Almeida v Universal Dye Works Pty Limited (No 2) [2001] NSWCA 156
Arena Management Pty Ltd (Receiver & Manager Appointed) v Campbell Street Theatre Pty Ltd [2011] NSWCA 128; (2011) 80 NSWLR 652
Arundel Chiropractic Centre Pty Ltd v Deputy Commissioner of Taxation [2001] HCA 26; (2001) 179 ALR 406
Barton v Armstrong [1976] AC 104
Bullock v London General Omnibus Company [1907] 1 KB 264
Cao v Liu [2013] NSWDC 8
Cao v Liu [2013] NSWDC 172
Capital Securities (Aust) Pty Ltd v Perpetual Trustees Vic Ltd & Anor [2009] VSCA 259
Central Queensland Development Corp Pty Ltd v Sunstruct Pty Ltd [2015] FCAFC 63; (2015) 106 ACSR 127
Commercial…

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AGLC
Yu v Cao [2015] NSWCA 276
Case
[2015] NSWCA 276
Decision Date

CaseChat Overview and Summary

This matter concerned an appeal from an order of Walmsley ADCJ in the Supreme Court of New South Wales. The appellant, Mr. Cao, sought leave to appeal against an order made by the primary judge that he pay the costs incurred by the respondent, Ms. Yu, in defamation proceedings, and also the costs for which Ms. Yu was liable to her own solicitors. Ms. Yu had commenced defamation proceedings against Mr. Cao, alleging that an email containing defamatory material had been sent from an email address appearing to be Mr. Cao's. However, at trial, it was established that the email was in fact composed and sent by Mr. Cao's husband, who was not joined as a party to the proceedings.

The central legal issue before the Court of Appeal was whether the primary judge erred in exercising her discretion to order Mr. Cao, a non-party to the original defamation proceedings, to pay Ms. Yu's costs. This involved considering the principles governing the award of costs against a non-party under section 98 of the *Civil Procedure Act 2005* (NSW), and whether the circumstances of the case justified such an order. The court had to determine if Mr. Cao's involvement in the litigation, or his husband's actions, warranted making him liable for Ms. Yu's costs.

The Court of Appeal found that the primary judge had erred in her exercise of discretion. The court reasoned that while Mr. Cao's husband was the author of the defamatory email and an obvious alternative defendant, there was no basis to hold Mr. Cao personally liable for the costs incurred by Ms. Yu. The evidence did not establish that Mr. Cao had published the email or that he was otherwise responsible for the litigation in a way that would justify a non-party costs order against him. The court noted that Ms. Yu had been advised from an early stage that the email was the work of Mr. Cao's husband, and yet chose not to join him as a party.

Consequently, the Court of Appeal allowed the appeal, set aside the orders made by the primary judge, and dismissed the respondent's notice of motion insofar as it sought orders against the appellant. The respondent was ordered to pay the appellant's costs of the application for leave to appeal and of the appeal.

Orders

Orders of the court

(1) Grant leave to appeal;

(2) Appellant to file the notice of appeal in the form of the draft appearing in the White Book at page 235 within seven days;

(3) Appeal allowed;

(4) Set aside the orders made by Walmsley ADCJ on 20 March 2014;

(5) Dismiss the respondent’s notice of motion filed on 25 September 2013 insofar as it sought orders against the appellant with costs;

(6) Respondent to pay the appellant’s costs of the application for leave to appeal and of the appeal and to have a certificate under the Suitors’ Fund Act 1951 (NSW) if otherwise qualified.

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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