Banicevich v AMP Services (NZ) Limited

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IN THE HIGH COURT OF NEW ZEALAND

AUCKLAND REGISTRY

CIV-2013-404-5272

[2016] NZHC 274

BETWEEN

GREGORY IVAN BANICEVICH

Plaintiff

AND

AMP SERVICES (NZ) LIMITED

First Defendant

THE NATIONAL MUTUAL LIFE ASSOCIATION OF AUSTRALASIA LIMITED

Second Defendant

Hearing: (on the papers)

Appearances:

M Black and S I Perese for the Plaintiff

D McLellan QC and D Durovich for the Defendants

Judgment:

25 February 2016


JUDGMENT OF WOODHOUSE J

(Costs)


This judgment was delivered by me on 25 February 2016 at 3:30 p.m. pursuant to r 11.5 of the High Court Rules 1985.

Registrar/Deputy Registrar

……………………………………

Counsel/Solicitors:

Mr M C Black, Barrister, Auckland

Mr D Dennis (plaintiff’s solicitor), Hammonds, Solicitors, Dargaville Mr D McLellan QC, Barrister, Auckland

BANICEVICH v AMP SERVICES (NZ) LTD [2016] NZHC 274 [25 February 2016]

Mr D A Campbell and Ms D I Durovich (defendants’ solicitors), Kensington Swan, Solicitors, Auckland

[1]                  In the substantive judgment in this proceeding the plaintiff’s several claims were dismissed, judgment was given for the second defendant on a counterclaim, and there was an order that the defendants are entitled to costs without fixing the quantum.1

[2]                  The defendants have sought costs fixed on a 2C basis for all steps, or at least for discovery and trial preparation, rather than costs on a 2B basis as had been fixed at the first case management conference. The defendants also seek an uplift of 50%.

[3]                  The plaintiff opposes the defendants’ application for costs in excess of the 2B scale. The plaintiff also challenges three items in the defendants’ costs schedule and expresses reservations in relation to the quantum of a fee charged for expert accounting services and evidence.2

[4]                  The submissions for both parties are set out in considerable detail in their costs memoranda. The plaintiff takes issue with most contentions of fact advanced by the defendants. The plaintiff also advances one substantial argument of default by the defendants in support of an argument that some costs items for discovery should be disallowed. I do not intend to summarise the range of issues or my conclusions on each point of contention. In general, costs applications should not require what would amount to an expanded judgment with findings of fact on a range of issues. It is sufficient to record that I am satisfied that a number of the arguments for the defendants have merit, and some of the responses for the plaintiff have merit, but the broad assessment substantially favours the defendants.

[5]                  What also favours the defendants, underpins the preceding conclusion, and provides a firm foundation for an award of costs in excess of the basic 2B scale, are conclusions already recorded, with reasons, in the substantive judgment on all of the plaintiff’s claims and arguments and on the counterclaim.

[6]                  Most significantly, the plaintiff’s primary claim that he had suffered trauma covered by the policy was untenable. The plaintiff’s own expert witnesses, whatever


1      Banicevich v AMP Services (NZ) Ltd [2015] NZHC 2273.

2      The plaintiff’s costs memorandum was filed on 17 November…

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Details
Case
[2016] NZHC 274
Decision Date

CaseChat Overview and Summary

The High Court of New Zealand, Auckland Registry, delivered its judgment in the case of Banicevich v AMP Services (NZ) Limited [2016] NZHC 274 on 25 February 2016. The plaintiff, Gregory Ivan Banicevich, sued AMP Services (NZ) Limited and The National Mutual Life Association of Australasia Limited over issues related to a life insurance policy. The plaintiff claimed that he had suffered trauma covered by the policy, while the defendants argued that the policy was invalid and that the plaintiff had failed to provide necessary notices. The second defendant also filed a counterclaim against the plaintiff.

The court had to decide whether the plaintiff's claims were tenable, whether the defendants' counterclaim was valid, and what costs should be awarded. The court considered the arguments and evidence presented by both parties, focusing on the merits of the plaintiff's claims and the defendants' counterclaim. The court concluded that the plaintiff's primary claim of suffering trauma covered by the policy was untenable, as confirmed by the plaintiff's own expert witnesses. Furthermore, the plaintiff's contentions regarding the notices he had received from the defendants were found to be incorrect. The court also found the defendants' counterclaim to be valid.

The court awarded costs to the defendants, stating that the plaintiff had pursued arguments lacking merit and had failed to admit facts or accept legal arguments without reasonable justification. The court ordered that the defendants' costs should be calculated on a 2B basis for most items, but on a 2C basis for certain items related to discovery and trial preparation, with an additional 50% uplift. The court also found the fee charged by the expert witness to be reasonable. In conclusion, the defendants were awarded costs in the amount of $57,219.91, together with disbursements.

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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