Fugle v Vance

Case [2023] NZCA 116


IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA

 CA430/2022
 [2023] NZCA 116

BETWEEN

LESLIE WILLIAM FUGLE
Applicant

AND

DAVID VANCE AND IAN MILLARD AS TRUSTEES OF THE ORANA TRUST
First Respondents

VEY GROUP LIMITED (IN LIQUIDATION)
Second Respondent

COMMISSIONER OF INLAND REVENUE
Third Respondent

Court:

Gilbert and Collins JJ

Counsel:

F E Geiringer for Applicant
R L Roff for First Respondents
M G Colson KC and R L Pinny for Second Respondent
K I S Nail-Leong for Third Respondent

Judgment:
(On the papers)

20 April 2023 at 10.00 am

JUDGMENT OF THE COURT

The applicant must pay costs of $2,868 to the first respondents and $3,824 to the second respondent.

____________________________________________________________________

REASONS OF THE COURT

(Given by Collins J)

  1. On 16 February 2023, we declined Mr Fugle’s application for leave to appeal.[1]  A dispute has now arisen between the parties over costs.  Mr Fugle accepts that he is liable for costs but argues that costs should be shared between the first and second respondents.  The first and second respondents take issue with that proposition.

  2. The first and second respondents seek costs awards totalling $6,692, comprising $2,868 for the first respondents and $3,824 for the second respondent.

  3. Mr Geiringer, counsel for Mr Fugle, says that a single award of costs should be ordered because the first and second respondents took “essentially identical steps” in opposing the application.

  4. We are satisfied that the first and second respondents are entitled to discrete awards of costs.  It is not correct to say that the first and second respondents took identical steps.  In particular:

    (a)The second respondent filed detailed submissions on whether or not an application to review a liquidator’s decision under s 284 of the Companies Act 1993 was an interlocutory application.  The first respondents, however, filed a memorandum simply abiding the decision of the Court on that issue.

    (b)The second respondent also filed detailed evidence in support of its opposition to the application.  The first respondents did not file any evidence in response to the application.

  5. Although the submissions for the first and second respondents were aligned to a large degree, both parties opposed the application for leave to appeal and, in those circumstances, both are entitled to discrete awards of costs.

  6. The costs sought by the first and second respondents are entirely appropriate.  We order accordingly.

Result

  1. The applicant must pay costs of $2,868 to the first respondents and $3,824 to the second respondent.

Solicitors:
Dewhirst Law, Whanganui for Applicant
JAG Legal, Lower Hutt for First Respondents
Bell Gully, Wellington for Second Respondent
Crown Law Office | Te Tari Ture o te Karauna, Wellington for Third Respondent


Details
AGLC
Fugle v Vance [2023] NZCA 116
Case
[2023] NZCA 116
Decision Date

CaseChat Overview and Summary

In the Court of Appeal of New Zealand, Leslie William Fugle sought to appeal against the dismissal of his application for leave to appeal. The first respondents, David Vance and Ian Millard as Trustees of the Orana Trust, opposed the application, as did the second respondent, Vey Group Limited (in liquidation), and the third respondent, the Commissioner of Inland Revenue. The Court declined Mr Fugle's application for leave to appeal on 16 February 2023, and the matter now before the Court is a dispute over the costs incurred in relation to the appeal.

The legal issue before the Court was whether the costs incurred by the first and second respondents should be shared between them or whether each should be awarded their own costs. Mr Fugle argued for a single award of costs as the respondents took "essentially identical steps" in opposing his application. However, the Court found that while the submissions of the first and second respondents were aligned, they had not taken identical steps in opposing the application. The second respondent had filed detailed submissions and evidence in relation to the application, whereas the first respondents had filed a memorandum simply abiding by the Court's decision on an issue.

The Court found that the first and second respondents were entitled to discrete awards of costs as they had both opposed the application for leave to appeal. The Court further found that the costs sought by the first and second respondents were entirely appropriate and ordered that Mr Fugle must pay $2,868 to the first respondents and $3,824 to the second respondent.

The final orders of the Court were that Mr Fugle must pay $2,868 to the first respondents and $3,824 to the second respondent.

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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