Bright v Auckland Council

Case [2016] NZHC 2117


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2016-404-000538 [2016] NZHC 2117

BETWEEN

PENELOPE MARY BRIGHT

Appellant

AND

AUCKLAND COUNCIL Respondent

Hearing: (On the papers)

Counsel:

Appellant in Person
K F Quinn for Respondent

Judgment:

7 September 2016

COSTS JUDGMENT OF VENNING J

This judgment was delivered by me on 7 September 2016 at 3.00 pm, pursuant to Rule 11.5 of the

High Court Rules.

Registrar/Deputy Registrar

Date……………

Solicitors:           Auckland Council, Auckland

Copy to:            Appellant

BRIGHT v AUCKLAND COUNCIL [2016] NZHC 2117 [7 September 2016]

[1]      In a judgment delivered on 11 July 2016 the Court granted leave to Ms Bright to bring the appeal out of time but dismissed her appeal.   As to costs the Court recorded:1

[30]     The Council is entitled to costs.   Costs should be on a 2B basis subject only to the Council’s counsel filing a memorandum to confirm that the costs on a 2B basis do not exceed the actual costs incurred by Council on this appeal.

[2]      Counsel for the Council has filed a memorandum to confirm that costs on a

2B basis amount to $12,822.50 but that the Council’s lawyers charge-out rate applied to the estimated time spent preparing for the appeal of 40 hours results in sum of

$7,080.00. That is the sum the Council seeks by way of costs award.

[3]      High Court Rule 14.2(f) provides:

an award of costs should not exceed the costs incurred by the party claiming costs.

[4]      The fact the Council was represented by in-house counsel does not prevent it from recovering its costs.   In Henderson Borough Council v Auckland Regional Authority Cook J noted:2

[t]he fact that an employed practitioner has acted for the successful party is not a sufficient reason for denying that party an award of party and party costs: after all, the time of a salaried employee has been occupied.

[5]      While that case was decided before the new costs regime, cases decided under the Part 14 of the High Court Rules apply the same principle.3

[6]      The sum of costs sought by the Council of $7,080.00 is approved.   The

Registrar may seal the costs order in that sum.

Venning J

1      Bright v Auckland Council [2016] NZHC 1560.

2      Henderson Borough Council v Auckland Regional Authority [1984] 1 NZLR 16 (CA) at 23.

3      Inland Revenue v Harbour City Tow and Salvage (2003) Limited HC Wellington CIV-2006-485-

2002, 12 February 2007; and Grant v Pandey [2013] NZHC 3323.

Details
AGLC
Bright v Auckland Council [2016] NZHC 2117
Case
[2016] NZHC 2117
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, Ms Penelope Mary Bright appealed against the Auckland Council in relation to a dispute that was originally settled in her favour but later dismissed on appeal. The Auckland Council, represented by in-house counsel, sought costs from the appeal. The court had to decide whether the Council was entitled to costs and if so, what the appropriate amount should be. The court had to consider the High Court Rules and the principles governing costs awards.

The court found that the Auckland Council was indeed entitled to costs for the appeal. The court reasoned that the fact the Council was represented by in-house counsel did not prevent it from recovering its costs, as the time of a salaried employee has been occupied. The court referred to the precedent set in Henderson Borough Council v Auckland Regional Authority and applied the same principle to the current case. The court also noted that the Council's costs should not exceed the costs incurred by the party claiming costs, as stipulated in High Court Rule 14.2(f). After considering the memorandum filed by the Council's counsel, the court approved the sum of $7,080.00 for the costs incurred by the Council.

The court ordered that the Registrar may seal the costs order in the sum of $7,080.00, which represents the costs incurred by the Auckland Council for the appeal. The court found that the sum sought by the Council was reasonable and within the limits of the High Court Rules. This decision provides clarity on the entitlement to costs for parties represented by in-house counsel and the application of the relevant legal principles.

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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