Simpson v Sax

Case [2017] NZHC 544


IN THE HIGH COURT OF NEW ZEALAND TAURANGA REGISTRY

CIV-2016-470-48 [2017] NZHC 544

UNDER High Court Rules Part 19

IN THE MATTER

of an application by one of the trustees of the Luke Simpson and Janine Simpson Family Trust

BETWEEN

LUKE ANDREW SIMPSON AS TRUSTEE/BENEFICIARY OF THE LUKE SIMPSON AND JANINE SIMPSON FAMILY TRUST

Plaintiff

AND

JANINE DAVINA SAX AS TRUSTEE/BENEFICIARY OF THE LUKE SIMPSON AND JANINE SIMPSON FAMILY TRUST

First Defendant

LUKE ANDREW SIMPSON AS TRUSTEE/BENEFICIARY OF THE LUKE SIMPSON AND JANINE SIMPSON FAMILY TRUST

Second Defendant

On the papers

Counsel:

E Eggleston for Plaintiff/Second Defendant
G McArthur for First Defendant

Judgment:

24 March 2017

JUDGMENT OF THOMAS J (COSTS)

[1]      By  my  decision  dated  10  February  2017  I  dealt  with  Mr  Simpson’s

application for directions in relation to District Court proceedings faced by the Luke

Simpson and Janine Simpson Family Trust and his Beddoe application.1

1      Simpson v Sax [2017] NZHC 112.

SIMPSON v SAX [2017] NZHC 544 [24 March 2017]

[2]      In my judgment I directed that any submissions regarding costs should be filed within 21 days of the date of the judgment.

[3]      I have now received submissions on behalf of Mr Simpson seeking either that both parties are reimbursed for their costs from the Trust fund or costs should lie where they fall.  No submissions have been filed by or on behalf of Ms Sax.

[4]      In   the   circumstances,   where   there   has   been   the   opportunity  to   file submissions but Ms Sax has chosen not to do so, I will proceed to deal with the question of costs.

[5]      I accept Mr Simpson’s submission that his application was required given the impasse between the trustees as to whether the District Court proceedings should be defended or not.

[6]      I also concur with the submission that  Mr Simpson’s application can  be considered brought in good faith given my observation that there appeared to be a reasonably arguable case in respect of both positions.

[7]      Mr Simpson was not, however, successful on his Beddoe application.  I take note of the matters put forward on Mr Simpson’s behalf alleging that Ms Sax’s conduct had contributed unnecessarily to the time the case has taken.  There is some merit in those observations.

[8]      I accept this is a case where both parties have had a measure of success and in the circumstances it is appropriate that costs lie where they fall.

Thomas J

Solicitors:

Holland Beckett, Tauranga for Plaintiff/Second Defendant

Families Matter Law Practice, Rotorua for First Defendant

Details
AGLC
Simpson v Sax [2017] NZHC 544
Case
[2017] NZHC 544
Decision Date

CaseChat Overview and Summary

This case concerned a dispute over the costs of legal proceedings between the parties, Luke Simpson and Janine Sax, who were trustees and beneficiaries of a family trust. The dispute arose in the context of a larger conflict between the parties, including District Court proceedings and a Beddoe application. The High Court was tasked with deciding the appropriate allocation of costs between the parties.

The primary legal issue was the determination of costs in the High Court proceedings, specifically whether the costs should be borne by the trust fund or whether they should lie where they fell. The court needed to assess the merits of the parties' positions, the reasonableness of their conduct, and the overall outcome of the case. This involved examining the conduct of both parties, including the reasonableness of the Beddoe application and the potential contribution of each party to the length and complexity of the proceedings.

The court found that the application made by Mr Simpson was necessary due to the impasse between the trustees regarding the District Court proceedings. The court accepted that Mr Simpson's application was brought in good faith, as there appeared to be a reasonably arguable case on both sides. However, Mr Simpson was unsuccessful in his Beddoe application, and the court noted that Ms Sax's conduct had contributed to the time the case had taken. Given that both parties had some measure of success, the court decided that it was appropriate for the costs to lie where they fell.

The court's final orders were that the costs of the High Court proceedings should lie where they fell, reflecting the mixed outcomes for both parties and the contributions to the length and complexity of the proceedings.

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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