CMS Trustees Limited v C E v R

[2014] NZHC 1905

NOTE: PURSUANT TO S 35A OF THE PROPERTY (RELATIONSHIPS) ACT 1976, ANY REPORT OF THIS PROCEEDING MUST COMPLY WITH SS 11B TO 11D OF THE FAMILY COURTS ACT 1980.  FOR FURTHER INFORMATON, PLEASE SEE COURT/LEGISLATION/RESTRICTIONS-ON-PUBLICATIONS.

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

CIV 2013-485-9326 [2014] NZHC 1905

BETWEEN

CMS TRUSTEES LIMITED

Appellant

AND

C E V R Respondent

Hearing:	18 June 2014
Counsel:	M L Greenhough for Appellant D G Dewar and C F Rieger for Respondent
Judgment:	13 August 2014

COSTS JUDGMENT OF RONALD YOUNG J

[1]      In these proceedings the appellants appealed against the assessment of the Family Court of a costs category assessment of 3C and a 30 per cent uplift of the costs.  I dismissed the appeal. The respondent now seeks costs on this appeal.

[2]      The  parties  agreed  at  a  case  management  hearing  that  the  appropriate category was 2B.  The respondent seeks increased costs because the respondent had herself incurred increased costs because she had appointed new counsel who was then unable to complete the hearing (he was appointed a Judge) and current counsel had to appear and get fully up to date on a complex and detailed history that the case

involved.

CMS TRUSTEES LTD v C E V R [2014] NZHC 1905 [13 August 2014]

[3]      Secondly, solicitor/client costs are in the region of $15,000, considerably more than costs on a 2B basis.

[4]      In my view neither ground is a basis for increased costs.  While I appreciate the difficulties current counsel had in coming up to speed with this case at the last moment that is not a basis for increased costs against CMS Trustees Limited.

[5]      Secondly, 2B cost appears to work out at $10,029.60.  I do not know what the actual costs are – it is said to “exceed $15,000”, but it is not known by how much. Costs of $10,000 would be two thirds of the $15,000 mentioned in the respondent’s submissions which is the desired reimbursement level.

[6]      I therefore refuse the application for increased costs.  I set costs on a 2B basis

as per the respondent’s memorandum at $10,029.60, including disbursements.

[7]      CMS Trustees Limited is now in liquidation.   Counsel for the respondent included an application in its costs memorandum for a costs order to be made against the  directors  of  CMS  Trustees  Limited.    Without  accepting  responsibility  the directors of CMS Trustees Limited have agreed to pay the 2B costs awarded.   In

those circumstances I do not need to consider the respondent’s application.

Ronald Young J

Solicitors:

D G Dewar, Wellington

M L Greenhough, Wellington