Hogan v Commercial Factors Ltd

[2005] NZCA 35

IN THE COURT OF APPEAL OF NEW ZEALAND

CA225/03

BETWEENMURRAY DAVID HOGAN

Appellant

ANDCOMMERCIAL FACTORS LIMITED

First Respondent

ANDCOMMERCIAL FINANCE AND SECURITIES LIMITED

Second Respondent

Hearing:20 July 2004

Court:Glazebrook, William Young and Chambers JJ

Counsel:D A Wood for Appellant

V E Dale for Respondents

Judgment:7 March 2005 

JUDGMENT OF THE COURT AS TO COSTS

The respondents are awarded costs in the sum of $11,006.38.

REASONS

(Given by William Young J)

[1]       The guarantee documentation executed by the appellant provides for him to pay legal costs on a solicitor and client basis and associated disbursements in relation to enforcement.

[2]       The costs incurred, inclusive of GST, are $11,006.38.  We see no reason not to award costs in that sum and do so.  The sum awarded includes GST which would not normally be the case with a litigant whose business involves the making of taxable supplies and is thus entitled to an input tax credit in relation to GST paid.  As the financial services provided by the respondents were in the nature of exempt supplies, however, there was no entitlement to an input tax credit with the result that an indemnity order must cover the costs actually incurred on a GST inclusive basis.

Solicitors:

Atmore Law, Auckland for Appellant
Grove Darlow & Partners, Auckland for Respondents