Herron v Wallace

[2016] NZHC 2427

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2013-404-1806 [2016] NZHC 2427

BETWEEN

STUART WALTON HERRON

Plaintiff

AND

WAYNE ANDREW WALLACE First Defendant

SHADES OF AUTUMN LIMITED Second Defendant

BELMONT LIFESTYLE VILLAGE LIMITED

Third defendant

Hearing:	On the papers
Counsel:	CT Patterson and DW Grove for plaintiff JE Hodder QC and CF Fife for first and third defendants
Judgment:	12 October 2016

JUDGMENT OF FAIRE J [Costs]

This judgment was delivered by me on 12 October 2016 at 2:30 pm, pursuant to Rule 11.5 of the High Court Rules.

Registrar/Deputy Registrar

Date……………

Solicitors:           Skeates Law, Auckland (G Skeates) Chapman Tripp, Auckland

Herron v Wallace [2016] NZHC 2427 [12 October 2016]

Table of Contents

Introduction ............................................................................................................[1] The plaintiff’s claim ...............................................................................................[3] The appeal and the stay and recall applications .....................................................[4] The remaining costs issues ...................................................................................[17] The recall of the costs order made on 19 November 2015 ..................................[18] Foundation for the indemnity costs claim ............................................................[22] Broad breakdown of indemnity costs claim .........................................................[24] The defendants’ opposition to the indemnity costs claim ....................................[28] The indemnity costs claim analysed ....................................................................[29] Summary of the position ......................................................................................[44] Conclusion............................................................................................................[47] Orders ...................................................................................................................[48]

Introduction

[1]      On  27  May  2016,  I  delivered  a  reserved  judgment  in  which  I  entered judgment for the plaintiff against the first and third defendants for $966,531.93.1    I reserved costs and gave directions covering that aspect.

[2]      Memoranda in support, opposition and reply have been filed.

The plaintiff ’s claim

[3]      The plaintiff has sought:

1      Herron v Wallace [2016] NZHC 1129.

(a)       Release  of  security for  costs  paid  to  the  Registrar  in  the  sum  of

$15,000;

(b)      Recall of a costs order I made on 19 November 2015, which provided:

I order:

…

b)That the defendants pay costs of the application based on Category  2  Band B  and  disbursements  as  fixed  by  the Registrar.  Such costs to be paid within ten working days of the service of a sealed copy of this order on the address for service of the defendants; and

c)That  the  defendants  shall  pay  the  hearing  fees  for  the resumed trial, which will commence at 10 am on 4 April

2016 in accordance with the Registrar’s directions.

(c)      An order that the first and third defendants pay the plaintiff’s actual costs, disbursements and witnesses’ expenses in the sum $856,650.51 in reliance on r 14.6(1)(b) in conjunction with r 14.6(4)(e) or, in the alternative, increased costs in reliance on r 14.6(1)(a).

The appeal and the stay and recall applications

[4]      On 8 June 2016, the first and third defendants filed an application for stay of execution.  The grounds relied upon where the filing of an appeal in respect of my judgment.

[5]      On 10 June 2016, the plaintiff filed a memorandum seeking an order for costs.

[6]      Also on 10 June 2016, I issued a minute calling a conference to deal with the application for stay for 22 June 2016.

[7]      On 15 June 2016, the defendants filed an amended application for stay which sought a recall of my judgment and also signalled…