So v Shi

Case [2022] NZHC 1329


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2021-404-000926

[2022] NZHC 1329

BETWEEN

BIU TAO SO

Plaintiff

AND

YAN SHI

First Defendant

HIN SING SO

Second Defendant

Hearing: on the papers

Counsel:

C P Browne and C J L Martin for Plaintiff

K G Davenport QC and A E Isaacs for First Defendant
No representation by or on behalf of the Second Defendant

Judgment:

9 June 2022


JUDGMENT OF PAUL DAVISON J

[Re: Costs]


This judgment was delivered by me on 9 June 2022 at 10:00 am pursuant to r 11.5 of the High Court Rules.

Registrar/Deputy Registrar

Solicitors:

Wilson Harle, Auckland Corban Revell, Auckland

SO v SHI COSTS JUDGMENT [2022] NZHC 1329 [9 June 2022]

Introduction

[1]                 On 18 February 2022 I declined the first defendant’s application for an order staying the plaintiff’s claim and granted the plaintiff’s application for summary judgment against the first and second defendants.1

[2]                 I recorded that the plaintiff is entitled to an award of costs on both applications.2 In the absence of agreement between the parties as to costs, I directed the parties to file and serve costs memoranda. The plaintiff has done so. The defendants have not. I will now determine costs on the papers filed by the plaintiff.3

[3]                 The plaintiff seeks costs on a 2B basis for the steps taken in the proceeding prior to judgment plus the costs of sealing the judgment. The plaintiff also seeks costs on a 2A basis for preparation of a costs memorandum owing to the first defendant’s unreasonable refusal of a without prejudice except as to costs settlement offer. The usual disbursements are also sought.

Discussion

[4]                 The plaintiff is entitled to costs in the amount claimed. This includes costs in respect of a joint memorandum filed on 3 August 2021 and for a memorandum dated 11 May 2021 seeking leave to use affidavits in this proceeding that had been filed in a separate proceeding between the same parties.

[5]                 I also allow costs on a 2A basis for preparation of the costs memorandum. The plaintiff made a written offer on 31 March 2022 to settle costs on the basis that the first defendant consented to an order for costs being made against her in the sum of

$16,860.38. This amount was explicitly stated to be 10 per cent less than the quantum calculated by the plaintiff as owing at that time. I consider that to have been a demonstrably reasonable offer in the circumstances. The plaintiff received no response to the offer. He was therefore put to the unnecessary cost of preparing the costs memorandum. He is entitled to recoup that cost.


1      So v Shi [2022] NZHC 214.

2 At [122].

3      As indicated in my minute dated 11 May 2022.

Result

[6]I award costs and disbursements to the defendant on a 2B scale basis totalling

$20,167.75.


Paul Davison J

Details
AGLC
So v Shi [2022] NZHC 1329
Case
[2022] NZHC 1329
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, Auckland Registry, the case of So v Shi involved a dispute between Biu Tao So, the plaintiff, and Yan Shi, the first defendant, with Hin Sing So, the second defendant, also named. The primary issue before the court was the determination of costs following the plaintiff's successful application for summary judgment against both defendants. The first defendant had made an unsuccessful application for a stay of the plaintiff's claim, which was declined by the court. The plaintiff sought costs on a 2B basis for the steps taken in the proceedings prior to judgment and for the costs of sealing the judgment. Additionally, the plaintiff requested costs on a 2A basis for the preparation of a costs memorandum, arguing that the first defendant unreasonably refused a without prejudice settlement offer concerning costs.

The court considered the plaintiff's entitlement to costs, noting that the plaintiff had filed and served a costs memorandum, while the defendants had not. The plaintiff's request for costs on a 2B basis was supported by the steps taken in the proceeding, including the joint memorandum filed on 3 August 2021 and the memorandum dated 11 May 2021. The court also allowed costs on a 2A basis for the preparation of the costs memorandum, finding that the plaintiff's offer of a settlement on costs was reasonable and went unanswered by the first defendant. This unreasonable refusal led to the plaintiff incurring additional costs in preparing the costs memorandum.

The court awarded the plaintiff costs and disbursements on a 2B scale basis, totaling $20,167.75. The judgment concluded that the plaintiff was entitled to the costs claimed, including those related to the preparation of the costs memorandum due to the first defendant's unreasonable refusal to settle the costs without prejudice. The court's decision was rendered on the basis of the papers filed and the lack of response from the defendants.

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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