| IN THE COURT OF APPEAL OF NEW ZEALAND |
| CA777/2011 [2013] NZCA 99 |
| BETWEEN COUSINS & ASSOCIATES |
| AND FM CUSTODIANS LIMITED |
| Hearing: 13 March 2013 |
| Court: O'Regan P, Arnold and Miller JJ |
| Counsel: A C Hughes-Johnson QC for Appellant |
| Judgment: 11 April 2013 at 11.30 am |
JUDGMENT OF THE COURT
AThe appeal is dismissed.
BThe appellant must pay the respondent costs on a band A basis and usual disbursements.
____________________________________________________________________
REASONS OF THE COURT
(Given by O’Regan P)
Introduction
This is an appeal against a judgment of Whata J awarding costs against the appellant, Cousins & Associates (Cousins), in favour of the respondent, FM Custodians Limited (FMC).[1]
Issue
[1]FM Custodians Ltd v Cousins & Associates HC Christchurch CIV-2009-409-2728, 26 October 2011.
The issue on appeal is not the amount of costs awarded, but whether it was appropriate for the Judge to award costs in circumstances where issues relating to liability have been resolved but the quantum of damages remains to be determined. Cousins argued in the High Court that costs should not have been awarded until after all of the issues in dispute between the parties, including damages, were decided. In the alternative, it argued that, if costs were to be awarded prior to the determination of damages, the order for costs ought to have been stayed until after the determination of the quantum of damages. Both of those arguments failed in the High Court and are now renewed in this Court.
Before turning to those arguments, we briefly set out the factual background.
Facts
FMC is a custodian trustee through which investors in mortgages hold their investments. FMC agreed to make a loan to Lichfield Ventures Limited (Lichfield) which was to be secured by a first mortgage over a Christchurch property. The property was all of the land described in one certificate of title and part of the land described in another. FMC instructed Cousins, a firm of solicitors which acted for Lichfield, to attend to the preparation, execution and registration of the mortgage. The mortgage was not registered pending the amalgamation of the two parcels of land into one title, but Cousins undertook that all was in place to effect the amalgamation and that there was no impediment to its proceeding.
FMC alleged that Cousins did not act in accordance with its instructions when registering security documents in that Cousins failed to register a first mortgage over a particular title owned by Lichfield, which was part of the mortgaged land.
FMC alleged negligence on the part of Cousins and the suffering of loss. The claim is defended by Cousins.
A liability trial was ordered. But on 8 July 2011, just over two weeks before the liability trial was to commence, Cousins admitted liability. This admission came after most of the normal steps required to prepare a case for trial had taken place. The parties submitted a joint memorandum noting their agreement on issues of liability. The memorandum, recorded Cousins’ position in…
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- Case
- [2013] NZCA 99
- Decision Date
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