Camelot Hotel Ltd v Square Holdings Ltd

Case

[2016] NZHC 82

4 February 2016


IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2013-409-001352 [2016] NZHC 82

BETWEEN

CAMELOT HOTEL LIMITED

Plaintiff

AND

SQUARE HOLDINGS LIMITED First Defendant

AND

THE MINISTER FOR CANTERBURY EARTHQUAKE RECOVERY

Second Defendant

Hearing: 28 January 2016

Appearances:

S J Caradus for First Defendant (Applicant) L M Taylor for Plaintiff (Respondent)

S E Rowe for Second Defendant excused

Judgment:

4 February 2016

JUDGMENT OF ASSOCIATE JUDGE OSBORNE UPON SECURITY FOR COSTS

Introduction

[1]      This  judgment  is  upon  a  defendant’s  application  for  security  for  costs

pursuant to r 5.45 High Court Rules.

[2]      In  particular,  the  first  defendant  applies  for  an  order  for  security  to  be provided by the plaintiff.

[3]      The  plaintiff  accepts  that  the  threshold  for  the  granting  of  an  order  for security for costs (under r 5.45(1)(b)) has been established.

CAMELOT HOTEL LIMITED v SQUARE HOLDINGS LIMITED [2016] NZHC 82 [4 February 2016]

The issues

[4]      The Court is required to give judgment having regard to its conclusions on two issues, namely:

(a)       what would represent an appropriate amount of security; and

(b)      what form of security would be satisfactory.

The litigation background and context

[5]      The plaintiff sues the first defendant for breaches of a 2007 lease by which the first defendant leased to the plaintiff a Cathedral Square building.  The plaintiff operated a hotel and restaurant business from the property.   The property was damaged during the Canterbury earthquake sequence and has not been occupied since February 2011.   In November 2014, the Crown exercised its powers of compulsory acquisition of the property under the Canterbury Earthquake Recovery Act 2011.

[6]      In summary, the plaintiff’s claims against the first defendant rely on the

following propositions:

(a)       as at the date of the Crown’s  acquisition,  the lease had  not been terminated;

(b)if the first defendant had acted with all reasonable speed, the building could have been repaired before the date of acquisition;

(c)       the first defendant failed to undertake repairs which it was required, by the lease, to effect;

(d)the  plaintiff  was  unable  to  re-enter  its  building  and  conduct  its business, thereby suffering damage; and

(e)       (alternatively), there was a failure by the first defendant to maintain a full   replacement   and   reinstatement   insurance   for   the   building,

constituting a breach of the lease, as a result of which the plaintiff has suffered damage.

[7]      The plaintiff has not adduced evidence to contradict that provided by the first defendant in order to establish the threshold test for security for costs.  That evidence includes the following:

(a)       the plaintiff has not traded since February 2011;

(b)      the plaintiff does not appear to own any land or chattels;

(c)       the plaintiff disposed of its chattels and furniture in May 2012;

(d)the  plaintiff  has,  at  least  in  part,  relied  on  funding  from  its shareholder; and

(e)      the  solicitors  who  previously  acted  for  the  plaintiff  commenced winding up proceedings against the plaintiff in March 2015 (subsequently settled).

[8]      In these circumstances, the plaintiff accepted that some measure of security for costs should be offered.

Informal attempts to settle the amount and form of security

[9]      The solicitors for the first defendant wrote to the plaintiff’s solicitors in July

2015  in  relation  to  security.    This  followed  the  public  advertisement  of  the liquidation proceeding which had been commenced against the plaintiff.

[10]     The first defendant’s solicitors, in their letter, provided a calculation of its costs in two stages.  Before trial preparation they assessed a sum of $50,347.  From trial preparation onwards, they assessed a sum of $30,845.  Both calculations were stated to be on “Category 3”.

[11]     The first defendant’s solicitors, by their letter, sought security for costs in two tranches being:

(a)       an immediate payment of $80,000 (representing $50,000 for costs and

$30,000 for the fees of expert witnesses); and

(b)a second payment for trial preparation and trial costs to be settled later but expected to be “upwards of $50,000” (comprising $30,000 costs and $20,000 for expert witnesses’ fees).  The plaintiff’s response was at two levels:

(i)the amount of security sought by the first defendant was unreasonable,  a  sum  of  $50,000  representing  a  reasonable sum; and

(ii)a   personal   undertaking   of   the   plaintiff ’s   director   and shareholder, Rakesh Sharma, was offered, representing satisfactory security.

The appropriate amount of security

[12]     Counsel referred me to a number of matters which they submit are relevant to the amount of security which the Court should or should not set.  The Judge’s task in terms of r 5.45(3) is to direct security in a sum which the Judge considers sufficient. I have regard to the following matters raised by counsel.

Delay in bringing the application for security

[13]     While the  first  defendant’s  application  was filed  on  11 August  2015,  its

solicitors had appropriately raised the issue of security by their July correspondence.

[14]     This  timing might  suggest  that  the Court  should  focus  on  the costs  and disbursements to be incurred from mid-2015.

[15]     I adopt what I observed in Jo v Johnston:1

[18]     Rule 5.45 does not expressly address the situation of a delayed application. Any  aspect  of  delay  is  a  factor  to  be  brought  into account in exercising the discretion. On their facts, applications for security for costs made at a very late stage in a proceeding are often unsuccessful: see Oceania Furniture Limited v Debonaire Products Limited.2   Cases where delay has been fatal to an application for security are often those where the application was made very close to the hearing date or where the applicant had stood by allowing the plaintiff to incur considerable expense without even an informal request in relation to security: see J Delaney, Security for Costs.3

[19]     Drawing on Clifford J’s judgment in Oceania Furniture, relevant considerations as to delay include:

(a)       Whether the application was made as soon as the defendant became  aware,  or  could  with  reasonable  inquiry  have become  aware,  of  the  plaintiff’s  likely  inability  to  meet costs;

(b)       Whether there has been needless delay in the application, particularly if it was designed to prejudice the plaintiff.

(c)       Whether and if so to what extent the delay has prejudiced the plaintiff, such as where a plaintiff has expended substantial sums to bring a proceeding to the brink of trial.

[20]     None of those considerations is decisive – Oceania Furniture is an example  of  a  case  where  the  Judge  accepted  that  the  relevant financial information had only very recently come to the knowledge of Oceania but the application for security was declined within the Court’s discretion.

[16]     In the present case, the decisive evidence was obtained by the first defendant when it became aware (I infer about April 2015) that liquidation proceedings had been commenced against the plaintiff in March 2015.

[17]     For the plaintiff, Ms Taylor submitted that the first defendant had already known sufficient to justify a security application from the time the plaintiff ceased trading as a result of the damage caused by the February 2011 earthquake.   Her submission was that the likelihood of insolvency was obvious at that point.  On the

other hand, Mr Caradus for the first defendant referred to the insurance covenants in

1      Jo v Johnston [2013] NZHC 552.

2      Oceania Furniture Limited v Debonaire Products Limited HC Wellington CIV-2008-485-1701,

24 April 2009.

3      Security for Costs J Delany (1989) at 124–127 and 174–175 (which provides examples from

Australian jurisdictions).

the  lease  and,  in  particular,  to  the  obligation  of  the  plaintiff  as  tenant  to  hold insurance for loss of profits.  I accept Mr Caradus’s submission that the evidence in relation to the plaintiff’s financial position in the period 2011 to mid-2015 was relatively neutral.

[18]     Assessing the evidence as a whole, I am satisfied that the first defendant pursued security promptly once it became aware of specific circumstances indicating that the plaintiff might be insolvent.  There was no needless delay and certainly none designed or having the effect of prejudicing the plaintiff.

Estimated costs, disbursements and expert witnesses’ fees

[19]     It was common ground between counsel that in assessing any security, the Court should assume that this proceeding is, in terms of r 14.3 High Court Rules, a Category 2 proceeding.

[20]     Mr Caradus based his calculations of likely costs upon the basis that the reasonable time to be assessed for each step, in terms of r 14.5 High Court Rules, should be band B, representing “a comparatively large amount of time for [each] step”.

[21]     Mr Caradus, at the hearing, helpfully provided a schedule (Schedule A to this judgment) which set out his calculations of the costs calculations which apply in the situations of both a band B and band C determination.  (The Schedule replaced an earlier Schedule filed by Mr Caradus, removing some items of calculation.)

[22]     Ms Taylor did not take any particular issue with Mr Caradus’s calculations. The thrust of her submissions was that the amount of security should have regard to a determination of band B and not a determination of band C.

[23]     In  general,  I  consider  Ms  Taylor’s  promotion  of  band  B  as  the  more appropriate.    It  is  clear  in  terms  of  r  14.5(1)  itself  that  the  determination  of reasonable time involves a step-by-step consideration.  None of the attendances of an interlocutory and case management nature suggest a band C determination.   The single item highlighted by Mr Caradus which might reasonably call for a band C

determination is the defendant’s preparation of briefs for trial.  It is clear that those will be extensive.  There are likely to be at least three expert witnesses (dealing with engineering, quantity surveying, and insurance broking).

[24]     Otherwise, I view Mr Caradus’s first column (in Schedule A), based on band

B, as the more appropriate approach to costs.

[25]     For Mr Caradus’s stage 1 (attendances prior to security for costs application)

I find Mr Caradus’s first column figure of $37,611 to be a realistic assessment.

[26]   For Mr Caradus’s stage 2 (attendances subsequent to security for costs application) there is a conceptual error in Mr Caradus’s calculations in that he has included matters relating to the present application for security for costs.  As I will be awarding and fixing the costs of this interlocutory application to be immediately payable those are not matters for security.   By deleting items 22, 24 and 26, Mr Caradus’s stage 2 calculation drops from $20,739 to $14,941.

[27]     For Mr Caradus’s stage 3 (preparation for and attendance at trial) I consider realistic Mr Caradus’s first column (based on band B) with the exception of two items which are appropriately in band C.  Item 30 (preparation of briefs) and item 33 (preparation for hearing) should each be allowed on a band C basis.   This would increase Mr Caradus’s first column figure of $46,830 to $56,865.

[28]     For present purposes, I regard the likely awarded costs to be $52,552 for stages 1 and 2 combined and $56,865 for stage 3.

[29]     The disbursements recoverable by the first defendant will be those incurred on pleadings, totalling $1,680.  I disregard Mr Caradus’s inclusion of the filing fee on the present interlocutory application as that, again, will be covered by an award of costs and disbursements now.

[30]     That leaves the likely expenses of expert witnesses.  Mr Caradus submitted that a conservative estimate for the three expert witnesses to be involved would be

$50,000 (if the experts prepare briefs and their evidence is agreed after conference between experts) or $100,000 if the experts are also required to give evidence at trial.

[31]     In relation to sums of such significance it is somewhat unsatisfactory for the Court to be left with no estimate of fees made by the experts themselves.  I therefore must proceed on a general impression and experience of past fees in comparable litigation.   A range of $50,000 to $100,000 appears realistic.   However, for the purposes of security for costs assessment, and in the absence of actual evidence of fees estimated by the experts themselves, I will adopt a base figure of $50,000.

[32]     The figures which I will therefore take into account when setting the amount of security will be:

(a)      Stage 1 & 2 costs –                $52,552 (b)      Stage 3 costs –  $56,865 (c)      Disbursements –  $1,680

(d)      Expert witnesses’ fees –        $50,000

$161,097

Disposal of assets

[33]     The  (unchallenged)  evidence  of  the  first  defendant  is  that  the  plaintiff disposed of its chattels and furniture in May 2012 at no cost.  This was relied upon by the first defendant as part of its evidence of the plaintiff’s apparent insolvency.  I do  not  regard  the  evidence  provided  as  indicating  that  the  plaintiff  had  been disposing of assets to make itself judgment-proof or costs-proof.   The disposal of assets is explicable by the fact that the plaintiff had been unable to operate for over a year and needed to remove its contents from the leased premises.

Litigation funding

[34]     Mr Caradus submitted that, in assessing security, the Court should take into account the fact that the plaintiff has a litigation funder in the person of Mr Sharma, its director and shareholder.  Mr Caradus submitted, by reference to judgments of the Supreme Court in Waterhouse v Contractors Bonding Ltd,4  that the plaintiff had failed in an obligation to promptly disclose the existence of a litigation funder.

[35]     The Waterhouse case is distinguishable.   This is not a case of a “litigation funder” in the sense used in Waterhouse, where the Courts recognised that control of litigation by a funder raises particular issues as to abuse of process and the like.  All that is happening in the present case is that a plaintiff, unable to trade because of events affecting its leased premises, is for the time being supported in this litigation by its shareholder.

Mr Sharma’s financial support

[36]     The greater relevance of Mr Sharma’s involvement relates to the plaintiff’s

access to justice.

[37]     Mr Sharma has given evidence as to ownership of a property in Auckland;  a significant taxable income in New Zealand in the year ended 31 March 2014;  and a non-resident income from the United States in the year ended 31 March 2012.  He also deposes to having valuable assets (of approximately USD$20 million) in the United States.

[38]     On the plaintiff ’s own evidence (as provided by Mr Sharma), the plaintiff, in the person of Mr Sharma, has a person who has been sustaining this litigation and is prepared to continue to do so.  Mr Sharma has not deposed that the plaintiff would be unable to continue with this litigation if substantial security is ordered.

[39]     There is no reason to anticipate that the plaintiff will be unable to proceed with this litigation if there is an award of substantial security.

The form of security

[40]     The first defendant seeks a traditional form of security, namely payment of

the secured sum into a solicitor’s trust account until further order of the Court.

[41]     The plaintiff asks instead that the Court direct that security be provided in the form of an undertaking which Mr Sharma has deposed he would give, namely an undertaking to pay $50,000 costs should the plaintiff be ordered to pay such sum to the first defendant.

[42]     The  starting  point  for  an  appropriate  form  of  security  is  r  5.45(3)(a)

whereunder a Judge may order security in a particular sum –

(a)       by paying that sum into Court; or

(b)by giving to the satisfaction of the Judge or the Registrar security for that sum.

[43]     Ms Taylor referred to two decisions which she submitted indicate acceptance by the Courts of the adequacy of an undertaking by a director or shareholder of a corporate plaintiff to meet any costs awarded, providing the undertaking is of substance.

[44]     First, Ms Taylor referred to the judgment of Master Williams QC in Shalimar Supermarket Ltd v Toulis.5      In that case, Mrs Patel (a relation of the director/shareholder) provided by affidavit an undertaking to pay up to $25,000 in the event of damages being awarded against the plaintiff in the proceedings.  Master Williams construed the undertaking as covering any order which might ultimately be made  against  the  plaintiff  if  unsuccessful  (including  an  order  for  costs  up  to

$25,000).  The Master also found that the undertaken sum would sufficiently cover both damages and costs.  As part of the Court’s conclusion (that the application for security for costs should be dismissed), the Master considered that security had already been given in the form of the undertaking.

[45]     The Shalimar judgment does not disclose what the evidence was as to the certainty that Mrs Patel would be able to meet her undertaking.  However, it appears, as  Ms Taylor submitted,  that  the Judge  and  all  parties must  have  regarded  the undertaking as an undertaking “of substance”.

[46]     I therefore do not regard Shalimar as authority for the proposition that an undertaking will generally suffice as a form of security.  At most it indicates that an undertaking  may  be  found  to  be  satisfactory  if  there  is  no  question  as  to  the substance of the undertaking.

[47]     Ms Taylor   referred also to Combined Logging Co Ltd v Crown Forestry Management Ltd.6    That case involved a suggestion that a second plaintiff might provide an undertaking to meet the first plaintiff ’s costs in the event the proceeding failed.  The second plaintiff was prepared to sign an undertaking.  However, Master Thomson did not treat the offered undertaking as a form of security for costs under the then-r 60.  Rather, counsel apparently canvassed with the Court during argument

the possibility that the Court might make an order pursuant to r 263 (which allowed the Court to make orders on interlocutory applications subject to such undertakings as the Court thinks just) expressly in lieu of an order for security for costs.   The second plaintiff agreed to give a suitably worded personal undertaking.   The defendant agreed to accept an order under r 263 (in lieu of an order for security under r 60).

[48]     Combined Logging  is therefore an unusual case in that the defendant  as applicant  expressly  accepted  an  undertaking  in  lieu  of  an  order  for  security. Implicitly the defendant accepted that the undertaking was of substance.  In its own way, the Combined Logging decision reinforces my view that an undertaking would not generally be regarded as a form of security in that Master Thomson viewed the order he was making as not one of security but as one requiring an undertaking to be provided in terms of the then-rule 263 (which has no equivalent in the current

Rules).

6      Combined Logging Co Ltd v Crown Forestry Management Ltd HC Wanganui CP 40/91, 30

September 1996.

[49]   Counsel might also have referred to the commentary in McGechan on Procedure7 where, under the heading “Manner of giving security”, the authors suggest:

The manner in which a plaintiff chooses to satisfy an order requiring security for costs is for the plaintiff: Geddes v Brebner HC Auckland CP 16-SD/99,

22 May 2003 (plaintiff proposing to secure his equity in his half-share of his

matrimonial home); Nikau Holdings Ltd v BNZ (1992) 5 PRNZ 430.

[50]     In Geddes v Brebner,8 the plaintiff jointly owned, with his wife, their home. For the defendant it was submitted, and accepted by the Master who had heard the initial application, that it was relevant that the plaintiff was in a position to have his wife (as joint owner) agree to the property being used for security.

[51]     On review, Potter J rejected the Master’s approach, holding:

[45]    In  Nikau  Holdings  Limited  v  BNZ  (1992)  5  PRNZ  430  on  an application for security for costs the Court stated that it is –

inherent in the whole concept of security for costs ... that the Court has the power to order a plaintiff to do what it is likely to find difficulty in doing, namely to provide security for costs which ex hypothesi it is unable to pay.  The means by which the plaintiff satisfies such an order is a matter for it.

[46]     The way the plaintiff, or for that matter any citizen, chooses to arrange his assets is a matter for him. As was noted in Nikau Holdings Limited, the manner in which he chooses to satisfy any Court order requiring security for costs is also a matter for him. It is clear that the plaintiff has an equity in a half share in the residential property he owns jointly with his wife, which is available to him to meet reasonable provision for security for costs. The means by which he chooses to do so is a matter for him. Observations by the Master as to the approach the plaintiff’s wife might take to a request by the plaintiff that she should join in making available the residential property as security, are not particularly relevant. They are simply aspects which may arise from any decision the plaintiff takes in relation to the arrangement of his assets.

[52]     Master Williams QC was the Judge who decided Nikau Holdings Limited v BNZ.9     It is his judgment which Potter J was citing.  The Master had referred to the judgment of Davison CJ in Bell-Booth Group Ltd v Attorney-General.10   I do not find

anything in the judgment of the Chief Justice which recognises an autonomy of

7      McGechan on Procedure (online looseleaf ed, Thomson Reuters) at [HR 5.45.08].

8 Above at [49].

9      Nikau Holdings Ltd v BNZ (1992) 5 PRNZ 430.

10     Bell-Booth Group Ltd v Attorney-General (1986) 1 PRNZ 457.

plaintiff’s  choice  as  to  form  of  security  which  Master  Williams’s  decision  (as adopted by Potter J) might suggest.  The Bell-Booth Group decision did not result in an award of security.  The Bell-Booth plaintiff was not left to make a decision as to the form in which to provide security.  The applications for security were dismissed. Furthermore, as I read the judgments of both Potter J and Master Williams, the focus is not upon the type of security to be provided (e.g. stakeholding or mortgage) but rather on the means by which a plaintiff might assemble the funds required for security.

[53]     I would respectfully decline to follow Geddes v Brebner and Nikau Holdings Limited v BNZ to the extent that those judgments might suggest there is plaintiff autonomy as to the type of security to be provided.  As it is, I view the observations in both judgments as being in fact directed to how a plaintiff would raise its security rather than the type of security it would provide.

[54]     My decision is reinforced if not required by the wording of r 5.45(3) of the High Court Rules.   The Rule specifically provides that an order for security may require the plaintiff to give to the satisfaction of the Judge or the Registrar security for a particular sum (my emphasis).   The previous rule, r 60, referred to the satisfaction of the Registrar (but not the Court).  In short, whatever the preference of the plaintiff as to the form of security and the means by which it provides security, it is ultimately for the Judge or Registrar to be satisfied as to the security offered.

[55]     I make this additional observation as to practice.   It may be that, in some cases,  the plaintiff will  be able to  provide compelling evidence that  a personal undertaking will be of substance and would result in prompt payment of any costs award.   The Judge or Registrar may find in such circumstances  that a personal undertaking sufficiently protects the defendant’s position.   There may also be other situations involving issues of access to justice arise by reason of the plaintiff’s limited access to financial support or where the defendant has contributed to the plaintiff’s financial predicament.  In such cases it may be appropriate for the Court to regard an undertaking,  in the particular circumstances, as satisfactory.   But any earlier   practice   (dating   from   the   1980’s   or   thereabouts)   whereby   personal undertakings might more readily have been regarded as satisfactory security (and I

am not convinced that such a practice existed) should not be assumed to retain validity.   The financial crises from the late-1980’s have involved the very abrupt elimination of some corporate and individual fortunes.   Assets are readily moved internationally.  Individuals can readily relocate.  This Court will recognise, when a defendant today seeks to protect its legitimate interests by an order for security for costs, that there is a substantial difference in the “security” provided by a personal undertaking and that provided by more traditional forms of security such as stakeholdings.

[56]     The plaintiff’s evidence in the present case falls well short of satisfying me either that a more traditional form of security cannot be offered or that the personal undertaking offered by Mr Sharma will inevitably result in prompt payment of any costs award.  The evidence as to Mr Sharma’s New Zealand income is almost two years old, with the American income information still older.  Mr Sharma refers to his ownership of an Auckland property but the evidence provided as to the bank loans on the property appears to indicate that there is a partnership involved in the ownership  of  that  property.    Mr  Sharma  has  not  provided  evidence  as  to  the registered title.  Finally, although Mr Sharma is apparently resident at present in New Zealand, by far the bulk of his claimed assets are stated to be in the United States. Mr Sharma has not offered any undertaking as to not further charging his assets. These circumstances do not provide a sense of assurance that Mr Sharma will at the time of any judgment be in New Zealand to honour his personal undertaking.

[57]     In fact, Mr Sharma’s evidence read as a whole suggests that there should be little or no difficulty for the plaintiff accessing sufficient cash to pay by way of security into an account a significant sum.

[58]     On the evidence  provided  by the plaintiff, the  form  of  security which  I consider will be satisfactory is a payment into a solicitor’s trust account as requested by the first defendant.

The appropriate amount of security

[59]     I find that it is just to order that the plaintiff provide by way of security a sum of $120,000 representing approximately 75 per cent of the incurred and anticipated costs and disbursements.

[60]     In  this  case  the  pleadings  are  at  the  point  of  being  closed. A trial  will commence in June 2016.  In my judgment, it is appropriate to allow the plaintiff to make payment by two tranches if it prefers tranches, but the dates for the two tranches will be relatively close.

Costs

[61]     This  has  been  a  straightforward  interlocutory  application.    Costs  should follow the event.  It is appropriate that costs be fixed on a 2B basis.

Orders

[62]     I order:

(a)      The  plaintiff  shall  provide  by  way  of  security  for  the  costs, disbursements and expert witnesses’ fees to be incurred by the first defendant, the sum of $120,000.

(b)The security of $120,000 is to be provided in two tranches of $60,000 each.

(c)       Each tranche is to be paid into the plaintiff ’s solicitors’ trust account

as follows:

(i)First tranche by 26 February 2016 (being five working days after the close of pleadings date);

(ii)      Second tranche by 2 May 2016 (being 15 working days after

the date for provision of the plaintiff’s briefs);

  1. The security shall be held by the plaintiff ’s solicitors on an

    interest-bearing deposit.

    (iv)The plaintiff’s solicitors shall in writing notify the first defendant’s   solicitors   immediately   that   each   tranche   of security has been received into their trust account.

(v)In the event that the plaintiff fails to make payment on time of either the first tranche or the second tranche, the proceeding will be stayed, save to the extent that the plaintiff (but not the first defendant or second defendant) will in such event still be required to complete any of its outstanding timetable obligations;

(vi)The plaintiff is in any event to pay the first defendant’s costs and disbursements of this application which I fix in the sum of

$8,751.00.

Associate Judge Osborne

Solicitors:

Duncan Cotterill, Christchurch Anthony Harper, Christchurch Buddle Findlay, Christchurch

SCHEDULE A

SCHEDULE OF HIGH COURT COSTS AND DISBURSEMENTS

STAGE 1 (ATTENDANCES PRIOR TO SECURITY FOR COSTS APPLICATION)

Item    Commencement, Case Management, Discovery and inspection           Allocated

days

Allocated

days

Category B     Category C

  1. Commencement of defence by defendant  2                6

  1. Counterclaim  1.6               4.8

  1. Pleading in response to amended pleading (3)  1.8               6

  1. Preparation for first or subsequent case management conference (10)             4                10

  1. Filing memorandum for case management conference or mentions hearing (10)

  1. 10

  1. Appearance at first or subsequent case management conference (10)            3                7

  1. List of documents on discovery  2.5               7

Total  18.9             50.8

Cost recovery rate category 2     $1,990.00 (until 1 July 2015)  $37,611        $101,092

STAGE 2 (ATTENDANCES SUBSEQUENT TO SECURITY FOR COSTS APPLICATION)

Item     Description  Allocated

days (2B)

Allocated

days (2C)

Category B     Category C

  1. Application for security for costs on 11 August 2015  .6                 2

  1. Memorandum for case management conference on 12 August 2015              .4                 1

  1. Appearance at case management conference on 13 August 2015                 .3                .7

  1. Inspection of CERA’s documents received on 3 September 2015                 2.5                7

  1. Inspection of Camelot’s documents received on 7 September 2015               2.5                7

  1. Memorandum for case management conference filed on 5 October

2015

  1. Notice of opposition to application by Camelot for further discovery filed on 13 October 2015

.4                1

.6                2

  1. Preparation of written submissions filed on 18 December 2015  1.5                3

  1. Appearance at hearing on 28 January 2016  .5

9.3               24.2

Costs recovery rate category 2 - $2,230 (from 1 July 2015)  $20,739         $53,966

STAGE 3 (TRIAL AND APPEARANCES)

Item     Trial and appearances  Allocated

days

Allocated

days

  1. Memorandum for case management conference (there are presently no timetables orders)

Category B     Category C

.4                1

  1. Appearance at case management conference  .3                .7

  1. Preparation for and appearance at pre-trial conference  .5                1

  1. Preparation for and appearance at issues conference  .5                1

  1. Plaintiff’s or defendant’s preparation of briefs or affidavits  2.5                5

  1. Defendant’s preparation of list of issues, authorities, and common

bundle

2.5                4

  1. Preparation for hearing  3                 5

  1. Appearance at hearing for principal counsel  8                 8

  1. Second and subsequent counsel  4                 4

Total  21                28

Cost recovery rate category 2     $2,230.00 (from 1 July 2015)  $46,830         $62,440
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Cases Citing This Decision

8

O'Brien v Parkinson [2020] NZHC 3402
Reynolds v Finnigan [2020] NZHC 2389
Cases Cited

0

Statutory Material Cited

0