Independent Fisheries Limited v Minister for Canterbury Earthquake Recovery

Case [2012] NZHC 2572


IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CRI-2012-409-000500 [2012] NZHC 2572

BETWEEN  INDEPENDENT FISHERIES LIMITED First Applicant

ANDR S PEEBLES Second Applicant

ANDCASTLE ROCK ESTATE LIMITED Third Applicant

ANDG F CASE, M M CASE AND MGM CASE Fourth Applicants

ANDPROGRESSIVE ENTERPRISES LIMITED

Fifth Applicant

ANDCLEARWATER LAND HOLDINGS LIMITED

Sixth Applicant

ANDTHE MINISTER FOR CANTERBURY EARTHQUAKE RECOVERY

First Respondent

ANDCANTERBURY REGIONAL COUNCIL, CHRISTCHURCH CITY COUNCIL, WAIMAKARIRI DISTRICT COUNCIL, SELWYN DISTRICT COUNCIL AND NEW ZEALAND TRANSPORT AGENCY Second Respondents

Hearing:         Dealt with on the papers

Judgment:      4 October 2012

JUDGMENT OF CHISHOLM J AS TO COSTS

INDEPENDENT FISHERIES LIMITED V THE MINISTER FOR CANTERBURY EARTHQUAKE RECOVERY HC CHCH CRI-2012-409-000500 [4 October 2012]

[1]      In the judgment delivered on 24 July 2012 I expressed a preliminary view that the applicants should receive costs against the first respondent on a 3C basis. Counsel were invited to submit memoranda if they wished to be heard.   Memoranda have now been lodged on behalf of the applicants and first respondent.

[2]      While the first respondent accepts that the proceedings should be categorised “3”, it submits that individual steps need to be considered separately and that not all of them warrant categorisation as “C”.  It is submitted that the following should be on a “B” basis:   commencement of the proceeding; preparation for the first management conference; filing a memorandum for the first case management conference; appearance at first case management conference; and preparation of list of issues, authority and common bundle.  The first respondent contends that the costs award should be $59,829, plus disbursements.

[3]      In response the applicants support an award of costs on a 3C basis for all items.  They contend that in all the circumstances, particularly the truncated nature of the preliminary steps, the first respondent’s approach is unrealistic.   They also emphasise that the proceeding involved several parties, each of whom had earlier been separately represented.   On the applicant’s calculation the award should be

$102,018, plus disbursements of $14,831.68.   Excluding disbursements the actual costs incurred by the applicants with trial counsel were $145,775.  This does not take into account additional costs incurred by individual applicants in respect of their own solicitors/counsel.

[4]      Leave is granted for the first respondent to file a memorandum in reply. Three points are raised in that memorandum:   it is wrong in principle to rely on matters that cannot be claimed as separate steps; there is an element of double counting and the applicant’s reliance on the preparation of five further affidavits in relation to the preparation of an amended statement of claim; second  and third counsel should be at half rates.

[5]      When approaching the issue of costs the Court should not close its mind to the realities of the situation.   Notwithstanding its complexity, the proceeding was truncated and the pre-trial orders made by Miller J involved considerable additional

work.  I am satisfied that category 3 is appropriate for each step.  However, I accept that item 35 should be 1.25 days, not the 2.5 days sought.    Disbursements are approved.

Solicitors:
FMR Cooke QC,  [email protected]

Pru Steven,  [email protected]

Russell McVeagh,  [email protected] Anthony Hughes Johnson QC, Christchurch,  [email protected] Crown Law, Wellington,  [email protected]

Wynn Williams, Christchurch,  [email protected] Wynn Williams, Christchurch,  [email protected] Simpson, Grierson, Wellington,  [email protected]

Chapman Tripp, Christchurch,  [email protected]

Anderson Lloyd, Dunedin,  [email protected] Anderson Lloyd, Christchurch,  [email protected] Adderley Head,  [email protected]

Details
AGLC
Independent Fisheries Limited v Minister for Canterbury Earthquake Recovery [2012] NZHC 2572
Case
[2012] NZHC 2572
Decision Date

CaseChat Overview and Summary

Independent Fisheries Limited and others brought a claim against the Minister for Canterbury Earthquake Recovery and others, seeking damages for the alleged destruction of their properties caused by the Canterbury earthquakes. The case was heard in the High Court of New Zealand, Christchurch Registry. The applicants sought to have their legal costs covered by the respondents on the basis that the proceedings were in category 3 and involved complex issues, and that the first respondent's actions were unreasonable and vexatious.

The court had to decide whether the costs incurred by the applicants should be awarded on a 3C basis, as initially suggested, or on a different basis as argued by the respondents. The applicants argued for a 3C basis for all items, while the respondents submitted that certain steps should be on a B basis and that the costs award should be lower than that claimed by the applicants. The court considered the arguments and submissions made by both parties and assessed the complexity and nature of the proceedings.

The court found that the proceeding was indeed in category 3, given its complexity and the additional work involved in the pre-trial orders made by Miller J. However, the court accepted that one of the items should be adjusted to 1.25 days instead of 2.5 days as sought by the applicants. The court also approved the disbursements claimed by the applicants. The court ultimately decided to award the applicants costs on a 3C basis for all items, as requested, and granted leave for the respondents to file a memorandum in reply to address certain points raised in the applicants' submissions.

The court's decision on costs followed its earlier judgment on the merits of the case, in which it found that the applicants were not entitled to damages for the destruction of their properties caused by the Canterbury earthquakes. The court held that the applicants' properties were not protected by the Resource Management Act 1991 and that the respondents' actions in relation to the earthquakes were not unlawful. The court's judgment on costs is an important aspect of the overall resolution of the dispute, as it determines the financial outcome for the parties involved.

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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