Hawkins Construction Limited v Internal Drywall Systems Limited HC Christchurch Civ-2010-409-002728

[2011] NZHC 505

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2010-409-002728

BETWEEN  HAWKINS CONSTRUCTION LIMITED Applicant

AND  INTERNAL DRYWALL SYSTEMS LIMITED

Respondent

Hearing:         20 May 2011

Appearances: CCH Fox for Applicant

R Smith for Respondent

Judgment:      20 May 2011

ORAL JUDGMENT OF CHISHOLM J

[1]      This is an application to set aside a statutory demand.  The respondent has consented to the demand being set aside, and it is set aside accordingly.  The issue of costs remains.  For the applicant, Mrs Fox seeks indemnity costs.  Such an order is opposed by Mr Smith for the respondent on the basis that the appropriate order would be an order for 2B costs.   Both counsel supported their propositions with detailed argument.

[2]      An order for indemnity costs is extremely rare.   I am not persuaded that indemnity costs are justified in this case.   However, I do accept that there is justification  for  something  more  than  2B  costs.    The  respondent  is  to  pay  the

applicant costs on a 2B basis plus 30%, together with disbursements.

HAWKINS CONSTRUCTION LIMITED V INTERNAL DRYWALL SYSTEMS LIMITED HC CHCH CIV-

2010-409-002728 20 May 2011