McLaughlin v McLaughlin

The High Court of New Zealand considered costs in the case of McLaughlin v McLaughlin. The plaintiffs, Mark James McLaughlin and Andrew Ashley McLaughlin, as beneficiaries of the Ashley Trust, sought the removal of their brother, John David Manuel McLaughlin, as a trustee of the trust. They also alleged breaches of duty by John and the second defendant, Glasgow Harley Trustee Limited (GHTL). The proceedings were lengthy and involved significant legal costs. The court issued a comprehensive judgment on 9 November 2021, which outlined the unsuccessful claims made by the plaintiffs. The defendants, John and GHTL, were largely successful in the proceedings.

The court addressed the issue of costs, noting that the plaintiffs had largely failed in their claims and, therefore, did not seek costs against the defendants. John, as the first defendant, sought costs from the plaintiffs and indemnification from the Ashley Trust for his shortfall in costs. GHTL sought costs from the plaintiffs and indemnification from the Ashley Trust for its additional costs. Brett McLaughlin, an interested party, also sought reimbursement for his costs from the Ashley Trust.

The court decided that John was entitled to 80% of the costs claimed against the plaintiffs, amounting to $365,154.24. The Ashley Trust was ordered to reimburse John $518,668.40 for his shortfall in costs, less the amount paid by the plaintiffs. GHTL was awarded $70,980.20 in costs against the plaintiffs, and leave was reserved for GHTL to seek further indemnification from the Ashley Trust. Brett was awarded $49,936.85 for his costs from the Ashley Trust.

The final orders included awarding costs to John and GHTL against the plaintiffs, reimbursing John and Brett from the Ashley Trust for their costs, and reserving leave for GHTL to seek further indemnification from the Ashley Trust. The court emphasised the importance of finality in the proceedings and considered the acrimonious nature of the family dispute in its cost calculations.