Reid v New Zealand Law Society

Case [2024] NZHC 2721


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2023-404-836

[2024] NZHC 2721

BETWEEN

DAVINA VALERIE REID

Appellant

AND

THE NEW ZEALAND LAW SOCIETY

Respondent

Hearing: On the papers

Counsel:

J Mason for Appellant

P Collins for Respondent

Judgment:

20 September 2024


JUDGMENT OF MUIR J

Judgment as to Costs (with Associated Stay)


This judgment was delivered by me on 20 September 2024 at 3.30 pm, Pursuant to Rule 11.5 of the High Court rules.

Registrar/Deputy Registrar Date: ……………………………

Solicitors/Counsel:

Phoenix Law Limited

Shortland Chambers, Auckland

REID v THE NEW ZEALAND LAW SOCIETY [2024] NZHC 2721 [20 September 2024]

The application

[1]The New Zealand Law Society (NZLS) seeks:

(a)Quantification of costs in respect of the scale 2B award already made by me in respect of Ms Reid’s failed appeal from a decision of the New Zealand Lawyers & Conveyancers Disciplinary Tribunal.1

(b)An award of costs in respect of Ms Reid’s application for leave to appeal that decision to the Court of Appeal (costs having been reserved on account of an unresolved application for legal aid).2

[2]        I have considered Mr Collins’  memoranda  and  that  of  Ms  Mason  dated 18 September 2024. Ms Mason advises that she is in receipt of instructions to appeal the decision of the Legal Aid Tribunal on review of the decision of Legal Aid Services declining Ms Reid’s application for legal aid in respect of both her unsuccessful appeal and unsuccessful application for leave.

[3]        In my substantive decision I awarded costs on a 2B basis reserving leave to apply for recession of the order if Ms Reid was granted legal aid. In my decision declining leave to appeal I reserved costs “pending advice as to the outcome of     Ms Reid’s application for legal aid”. That application was declined. Two reviews have been unsuccessful, but she retains an ability under s 59 of the Legal Services Act 2011 to appeal to the High Court on a question of law.

Discussion

[4]        There can, in my view, be no reasonable argument about the quantum of costs sought on the appeal and application for leave. In both cases calculations proceed on an orthodox 2B basis.


1      Reid v New Zealand Law Society [2023] NZHC 2370.

2      Reid v New Zealand Law Society [2024] NZHC 411, a subsequent application for leave to appeal to the Court of Appeal was also declined.

[5]        Although it is appropriate therefore to quantify and award the costs on my substantive judgment ($10,320.48 including disbursements) and on my leave judgment ($5,019), I do so on the basis that one, other, or both of the awards (as the case may be) are set aside if Ms Reid’s intended appeal is successful.

[6]        I intend also to stay enforcement proceedings (including bankruptcy proceedings) in respect of the awards for a period of seven months from today’s date (or such earlier date as the appeal decision is delivered) to facilitate disposition of the intended appeal. In the event the appeal has been prosecuted diligently but a decision is not to hand at the expiration of the seven month period, Ms Reid may apply for an extension of the stay. She may do so by memorandum. She will need to provide affidavit evidence in relation to the steps taken.

Result

[7]        On Ms Reid’s appeal, I award costs and disbursements in favour of NZLS in the sum of $10,320.48.

[8]        On the application for leave to appeal to the Court of Appeal I award costs in favour of NZLS in the sum of $5,019.

[9]        I stay enforcement of both awards until 20 April 2025 or such earlier date as the High Court delivers its decision on appeal from the decision of the Legal Aid Tribunal dated 18 September 2024.3

[10]      I direct provision of the High Court’s decision on Ms Reid’s intended appeal to the solicitors for NZLS on receipt.

[11]      In the event Ms Reid’s appeal is successful with the further result that she receives an award of legal aid for the appeal and/or application for leave, the costs awards now made (or either of them) are to be considered rescinded from the date of such award of legal aid.


3      Nothing that if the appeal is successful and a remission takes place, a further extension of the stay is likely pending the ultimate outcome of the application for legal aid.

[12]Ms Reid is at liberty to apply for extension of the stay in the event:

(a)she has prosecuted her appeal diligently, but no appeal decision has been published by the date of expiration of the stay; or

(b)her appeal is successful but her application has been remitted for further consideration and no decision on it has yet been made.

[13]      If Ms Reid fails to file her intended appeal within 14 days of today’s date or otherwise to prosecute it with reasonable diligence, I reserve leave to NZLS to apply for the stay to be lifted.


Muir J

Details
AGLC
Reid v New Zealand Law Society [2024] NZHC 2721
Case
[2024] NZHC 2721
Decision Date

CaseChat Overview and Summary

The case of Reid v New Zealand Law Society involves Davnia Valerie Reid as the appellant and the New Zealand Law Society as the respondent. Reid’s appeal against a decision of the New Zealand Lawyers and Conveyancers Disciplinary Tribunal was dismissed by the High Court, and she subsequently applied for leave to appeal that decision to the Court of Appeal. The New Zealand Law Society has now applied for quantification and award of costs in relation to both Reid’s failed appeal and her unsuccessful application for leave to appeal. The court has been tasked with determining the appropriate quantum of costs and the appropriate conditions under which these costs should be enforced.

The court was required to address two primary legal issues: the quantification of costs for Reid’s failed appeal and the costs associated with her application for leave to appeal. Given the unsuccessful nature of both proceedings, the court considered the standard approach to awarding costs under the High Court rules, which typically involves an assessment on a 2B basis. Additionally, the court had to determine whether to enforce these costs immediately or to stay enforcement pending the outcome of Reid's intended appeal to the High Court concerning the denial of legal aid.

In its judgment, the court found that the quantum of costs in both the appeal and the application for leave to appeal was appropriately calculated on a 2B basis. The court awarded costs of $10,320.48 for the appeal and $5,019 for the application for leave to appeal. However, it decided to stay enforcement of these awards for seven months from the date of the judgment to allow for the potential appeal against the Legal Aid Tribunal’s decision. The court emphasised that if Reid successfully appeals and secures legal aid, the costs awarded could be rescinded from the date of that legal aid award. Furthermore, if Reid diligently pursues her appeal but the decision is not delivered within the seven-month period, she may apply for an extension of the stay. The court also reserved the right for the New Zealand Law Society to apply for the stay to be lifted if Reid fails to prosecute her appeal with reasonable diligence.

The court’s final orders included the quantification and award of costs to the New Zealand Law Society for both the appeal and the application for leave to appeal. The enforcement of these awards was stayed for seven months, with provisions for potential extensions if certain conditions were met. This judgment ensures that the New Zealand Law Society is compensated for the costs incurred but also provides flexibility for Reid should her appeal be successful.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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