Curtis v Gibson

Case [2014] NZHC 969


IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

CIV-2008-485-2735 [2014] NZHC 969

BETWEEN

RICHARD JOHN CURTIS

First Plaintiff

CURTIS HOLDINGS LIMITED Second Plaintiff

AND

RODNEY MARK GIBSON First Defendant

HABODE IP LIMITED Second Defendant

Hearing: On the papers

Counsel:

P B Churchman QC and S C McIver for Plaintiffs
D D Vincent and A J Watt for Defendants

Judgment:

9 May 2014

COSTS JUDGMENT OF MACKENZIE J

I direct that the delivery time of this judgment is

4.45 pm on the 9th day of May 2014.

Solicitors:           Gault Mitchell, Wellington, for Plaintiffs

Thomas Dewar Sziranyi Letts, Lower Hutt, for Defendants

CURTIS v GIBSON [2014] NZHC 969 [9 May 2014]

[1]      The  parties  have  filed  memoranda  as  to  costs  in  accordance  with  the invitation contained in [70] of my judgment of 31 October 2013.

[2]      I must determine costs for the entire proceedings in this Court, in respect of both sets of proceedings which were the subject of the judgment of Simon France J delivered on 18 May 2010, and the subsequent hearing before me following the allowing of the appeal against that judgment.   The costs ruling of Simon France J delivered on 23 June 2010 has been set aside by the Court of Appeal.

[3]      Mr Churchman   QC   submits   that   the   Gibson   interests   were   entirely unsuccessful in both the Gibson proceeding and the Curtis proceeding, the Curtis interests  narrowed  their  approach  in  the  Court  of Appeal  proceedings  and  this produced a successful outcome and costs should follow that event.  He seeks scale costs in both proceedings, on a 2B basis, for all High Court proceedings both before and after the Court of Appeal decision, that is to say all steps relating to both the original hearing before Simon France J, and the subsequent hearing before me fixing quantum.

[4]      Mr Vincent, for Mr Gibson, submits that costs for the original High Court hearing before Simon France J should lie where they fall, and that costs regarding the account of profits hearing before me should not be awarded personally against Mr Gibson as he was legally aided throughout that period.

[5]      I do not consider that it is appropriate to award full scale costs for the stage of the  proceedings  up  to  and  including  the  hearing  before  Simon  France  J.    The essential broad issues raised by the two sets of proceedings in issue at that hearing were as follows:

(a)      the Curtis  proceedings  were  concerned  with  Mr Curtis’ claim  that there  was   a  worldwide  joint   venture  between   Mr Gibson   and Mr Curtis in respect of the Habode product.   The joint venture was initially claimed to involve, inter alia “protecting the intellectual property in the product”; and

(b)the Gibson proceeding involved a claim for declarations to the effect that Mr Curtis or Habode Holdings had no rights in relation to the Habode product, and a claim for conversion of a Habode Unit.

[6]      Simon France J held in the Curtis proceedings that there was no joint venture. He declined to make…

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Curtis v Gibson [2014] NZHC 969
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[2014] NZHC 969
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CaseChat Overview and Summary

In the case of Curtis v Gibson, the High Court of New Zealand was called upon to determine the costs associated with the proceedings. The plaintiffs, Richard John Curtis and Curtis Holdings Limited, brought claims against the defendants, Rodney Mark Gibson and Habode IP Limited, concerning a joint venture and intellectual property rights related to the Habode product. The case involved multiple stages of litigation, including a hearing before Justice Simon France, an appeal, and a subsequent hearing before Justice MacKenzie.

The primary legal issues before the court were whether the plaintiffs were entitled to costs for the entire proceedings, the appropriate basis for calculating those costs, and whether the costs should be awarded against both defendants. The court had to consider the effect of legal aid on the defendants' liability for costs and the specific circumstances of the case that might warrant an award of costs against the defendants.

Justice MacKenzie determined that the plaintiffs were not entitled to full scale costs for the entire proceedings. The court found that the plaintiffs' claims had been significantly narrowed and altered during the appeal process, which justified a reduction in the costs awarded for the initial stage of the litigation. The court assessed a 50% discount on the costs for the period up to and including the hearing before Justice France. For the subsequent hearing before Justice MacKenzie, the plaintiffs were deemed successful, and costs were awarded accordingly, subject to the application of the Legal Services Act 2011. The court also ruled that the liability for costs should be joint and several between the defendants, and that the award against Mr Gibson should be limited to the period before he was granted legal aid.

The final orders of the court resulted in an award of costs and disbursements totaling $53,824.85 against Mr Gibson and Habode IP Ltd, and a further award of $64,922 against Habode IP Ltd alone. Justice MacKenzie also specified what the award against Mr Gibson would have been if the Legal Services Act had not affected his liability.

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Background

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