Body Corporate 392619 v Yee Good Fortune Investments Limited

In the High Court of New Zealand, Wellington Registry, Body Corporate 392619 sued Yee Good Fortune Investments Limited, seeking an order for the defendant’s liquidation. The court dismissed the plaintiff's claim in a judgment dated 21 February 2018. The matter proceeded to a costs hearing as the parties could not agree on the allocation of costs. The defendant sought costs, arguing that the plaintiff's actions increased the cost of the proceeding, while the plaintiff contended that it was the defendant's actions that were unnecessary and unmeritorious.

The court considered whether the plaintiff's actions warranted an uplift in costs. The defendant argued that the plaintiff took unnecessary and unmeritorious steps or pursued unnecessary and unmeritorious arguments, citing Bradbury v Wespac Banking Corporation [2009] 3 NZLR 400 as an example of increased costs being awarded on that basis. However, the court found that even if the plaintiff's actions could be substantiated, they did not involve anything more than the actions of a committed and resolute litigant. Similarly, the defendant's actions were not viewed as involving unnecessary and unmeritorious steps or arguments. The court determined that both parties advanced their cases vigorously, but there were no clear examples of unnecessary or unmeritorious actions.

The court concluded that the correct approach was to award costs on a 2B scale, meaning that the defendant, as the successful party, is prima facie entitled to an award of costs. The plaintiff was ordered to pay the defendant $8,474 in costs and $1,167.50 in disbursements. This decision reflects the court's view that while both parties engaged vigorously in the litigation, neither party's actions warranted an uplift in costs.