FEDERAL COURT OF AUSTRALIA
ZACD Group Ltd v Bao (Costs) [2023] FCA 1626
File number(s): NSD 604 of 2022 Judgment of: HALLEY J Date of judgment: 19 December 2023 Catchwords: COSTS – application by defendant for costs of and incidental to case management hearings – where defendant seeks order that Court determine costs on lump sum basis and costs be payable forthwith – where case management hearings concerned dispute arising from defendant’s request to inspect a deed of settlement in related proceedings in Supreme Court of New South Wales – orders made that plaintiffs are to pay defendant’s costs of and incidental to the case management hearings, costs be determined by a Registrar on a lump sum basis and costs be payable within 28 days of Registrar’s determination Legislation: Federal Court Rules 2011 (Cth) rr 20.31, 20.35, 30.28, 40.13 Cases cited: Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119 Hadid v Lenfest Communications Inc [2000] FCA 628
Harrison v Schipp (2002) 54 NSWLR 738; [2002] NSWCA 213
Richmond v Ora Gold Limited [2020] FCA 70
Sharif v Vitruvian Investments Pty Ltd (No 2) [2023] FCA 619
Watson v Kriticos (Costs of Summary Judgment Application) [2021] FCA 917
Division: General Division Registry: New South Wales National Practice Area: Commercial and Corporations Sub-area: Corporations and Corporate Insolvency Number of paragraphs: 50 Date of last submissions: 3 October 2023 (Defendant)
4 October 2023 (Plaintiffs)Date of hearing: Determined on the papers Counsel for the Plaintiffs: Mr N D Riordan Solicitor for the Plaintiffs: Thomson Geer Counsel for the Defendant: Ms Z M Hillman Solicitor for the Defendant: Clayton Utz ORDERS
NSD 604 of 2022 BETWEEN: ZACD GROUP LTD UEN 201630694E
First Plaintiff
ZACD (DEVELOPMENT4) LTD UEN 201816064H
Second Plaintiff
AND: MR RICHARD BAO
Defendant
ORDER MADE BY:
HALLEY J
DATE OF ORDER:
19 DECEMBER 2023
THE COURT ORDERS THAT:
1.Rule 40.13 of the Federal Court Rules 2011 (Cth) be dispensed with.
2.The plaintiffs pay the defendant’s costs of and incidental to the case management hearings in these proceedings on 4 August 2023 and 4 September 2023 on a party and party basis in accordance with Orders 3 to 5 of these orders.
3.The defendant’s costs be assessed on a lump sum basis.
4.The matter be referred to a Registrar to determine the lump sum.
5.The plaintiffs are to pay the sum determined by the Registrar pursuant to Order 4 of these orders within 28 days of the Registrar’s determination of the lump sum.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
HALLEY J:
A. INTRODUCTION
On 8 September 2023, I made orders that the parties file and serve written submissions on costs with respect to case management hearings in these proceedings on 4 August 2023 and
4 September 2023 (case management hearings) and that the issue be determined on the papers.
The case management hearings were concerned with a dispute that had arisen between the…
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- Case
- [2023] FCA 1626
- Decision Date
CaseChat Overview and Summary
The court addressed the legal issues by first considering the principles of costs in Australian litigation, particularly focusing on the circumstances under which costs of case management hearings may be awarded. The court examined whether the plaintiffs' refusal to produce the Settlement Deed was unreasonable and whether this refusal justified the defendant's pursuit of the case management hearings. The court also considered the appropriate basis for determining the costs, whether on an itemised basis or a lump sum, and the timing of payment.
The court concluded that the plaintiffs' refusal to produce the Settlement Deed was unreasonable, justifying the defendant's application for costs. The court held that the costs should be assessed on a lump sum basis and determined by a Registrar. It was ordered that the plaintiffs are to pay the defendant's costs of the case management hearings, which are to be assessed by a Registrar and payable within 28 days of the determination. This decision reflects the court's view that the plaintiffs' actions warranted the defendant's pursuit of the case management hearings and the need for a prompt resolution of the costs issue.
The final orders of the court included dispensing with Rule 40.13 of the Federal Court Rules 2011, directing the plaintiffs to pay the defendant's costs of the case management hearings, assessing the costs on a lump sum basis, referring the matter to a Registrar for determination of the lump sum, and requiring the plaintiffs to pay the sum determined by the Registrar within 28 days. These orders were made to ensure a swift and definitive resolution of the cost issue.
Orders
Orders of the court
1. Rule 40.13 of the Federal Court Rules 2011 (Cth) be dispensed with.
2. The plaintiffs pay the defendant’s costs of and incidental to the case management hearings in these proceedings on 4 August 2023 and 4 September 2023 on a party and party basis in accordance with Orders 3 to 5 of these orders.
3. The defendant’s costs be assessed on a lump sum basis.
4. The matter be referred to a Registrar to determine the lump sum.
5. The plaintiffs are to pay the sum determined by the Registrar pursuant to Order 4 of these orders within 28 days of the Registrar’s determination of the lump sum.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
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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