Roband v O'Sheas

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IN THE HIGH COURT OF NEW ZEALAND HAMILTON REGISTRY

I TE KŌTI MATUA O AOTEAROA KIRIKIRIROA ROHE

CIV-2013-419-000966

[2018] NZHC 1241

BETWEEN

JANINE MAREE ROBAND

Plaintiff

AND

O’SHEAS

First Defendant

MICHAEL CANN

Second Defendant

Hearing: [On the Papers]

Appearances:

J M Roband (Self-represented Plaintiff) in Person

L J Taylor QC and R C Woods for the First Defendant M Cann (Self-represented Second Defendant) in Person D M O’Neill to Assist the Court

Judgment:

30 May 2018


JUDGMENT OF EDWARDS J


This judgment was delivered by Justice Edwards on 30 May 2018 at 4.30 pm, pursuant to

r 11.5 of the High Court Rules

Registrar/Deputy Registrar Date:

Counsel:     L J Taylor QC, Wellington

D M O’Neill, Hamilton

Solicitors:    Robertsons, Auckland

Copies To: J M Roband, Hamilton

M Cann, Hamilton

ROBAND v O’SHEAS [2018] NZHC 1241 [30 May 2018]

Introduction

[1]                  In my judgment dated 9 October 2017, I dismissed Ms Roband’s claims against O’Sheas in their entirety, and dismissed all but one of the claims against Mr Cann.1 The remaining claim was adjourned pending receipt of further evidence.

[2]O’Sheas and Mr Cann seek costs awards in their favour.

(a)O’Sheas seeks $516,089.24. That sum comprises schedule 2B costs, uplifted by 75 per cent from the commencement of the claim until 7 October 2016, and indemnity costs from 8 October 2016 until the end of the trial.

(b)Mr Cann represented himself at trial. He seeks $34,199 for his legal disbursements and expenses incurred in the preparation of his defence.

[3]                  Ms Roband is no longer legally represented and has not taken any further part in the proceeding.2 Given the quantum claimed by O’Sheas, and the comprehensive submissions filed in support, I appointed Mr O’Neill to assist the Court on the question of costs. I am grateful for that assistance which was provided by way of written submissions.

[4]The issues to be determined are as follows:

(a)Are the scale costs and disbursements claimed by O’Sheas appropriate?

(b)Should O’Sheas be awarded increased costs?

(c)Should O’Sheas be awarded indemnity costs?

(d)Should Mr Cann be awarded a sum for his legal disbursements and expenses?


1      Roband v OʼSheas [2017] NZHC 2468.

2      Ms Roband filed a short memorandum setting out her expenses in relation to the proceeding, with supporting invoices, which she asked the Court to take into account in fixing costs.

History of the proceeding

[5]                  Ms Roband, Mr Cann and Mr John O’Shea were once co-trustees of the McGerkinshaw Property  Trust.  O’Sheas  was  also  the  solicitor  to  that  Trust.  Ms Roband sued O’Sheas and Mr Cann in relation to a number of transactions which she said preferred the interests of others to those of the Trust. Those transactions concerned:

(a)the provision of an unlimited and interlocking guarantee in 2006 (2006 Guarantee);

(b)the application of the proceeds of sale from a property known as the Newstead property;

(c)the refinancing of debt in relation to another property known as the Alconbury property; and

(d)the  failure  to  enforce  lease  arrangements   in   accordance   with Ms…

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Details
Case
[2018] NZHC 1241
Decision Date

CaseChat Overview and Summary

In Roband v O'Sheas, the plaintiff, Janine Roband, sued the defendants, O'Sheas (a law firm) and Michael Cann, for breach of fiduciary duty, breach of trust, negligence, and breach of retainer. The plaintiff alleged that the defendants acted improperly in their handling of several transactions, including the provision of a guarantee, the application of proceeds from the sale of a property, the refinancing of debt, and the failure to enforce lease arrangements. The case was dismissed in its entirety against O'Sheas and all but one claim against Mr Cann. The defendants now seek costs awards in their favour.

The issues for the court to decide were: (a) whether the scale costs and disbursements claimed by O'Sheas were appropriate, (b) if O'Sheas should be awarded increased costs, (c) if O'Sheas should be awarded indemnity costs, and (d) if Mr Cann should be awarded a sum for his legal disbursements and expenses.

The court found that the scale costs and disbursements claimed by O'Sheas were appropriate. It declined to award increased costs for the first settlement offer but awarded a 50% uplift on scale costs for the second offer's unreasonable rejection. The court considered Ms Roband's conduct to be flagrant, awarding indemnity costs for the trial period. Finally, the court found that Mr Cann was entitled to be reimbursed for his legal disbursements and expenses in the sum of $34,199.

The court made the following orders as to costs: (a) Ms Roband shall pay O'Sheas costs on a schedule 2B basis from the commencement of the proceeding up to and including 7 October 2016, costs on a schedule 2B basis uplifted by 50% from 8 October 2016 to 30 April 2017, indemnity costs from 1 May 2017 to 12 May 2017, and disbursements in the sum of $115,187.76 (excluding GST); (b) O'Sheas shall file and serve a memorandum setting out the quantum of costs calculated in accordance with these orders for final approval; (c) Ms Roband shall pay Mr Cann the sum of $34,199 for his legal disbursements; and (d) Ms Roband's application to remove Mr Cann as trustee is dismissed.

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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