Sullivan v Wellsford Properties Limited

Case [2018] NZHC 806


IN THE HIGH COURT OF NEW ZEALAND WHANGAREI REGISTRY

I TE KŌTI MATUA O AOTEAROA WHANGĀREI TERENGA PARĀOA ROHE

CIV-2016-488-35

[2018] NZHC 806

BETWEEN

PETER ANTHONY SULLIVAN

First Plaintiff

PORT ALBERT INVESTMENTS LIMITED
Second Plaintiff

AND

WELLSFORD PROPERTIES LIMITED

First Defendant

GARRY EDWARD HANNAM
Second Defendant

SUMPTER BAUGHEN CHARTERED ACCOUNTANTS LIMITED

(Discontinued) Third Defendant

Hearing: On the papers

Counsel:

P Dale and A Steel for the Plaintiffs

J Golightly and D Reeves for the Defendants

Judgment:

26 April 2018


JUDGMENT OF GORDON J

[Costs on application for stay of costs award pending appeal]


This judgment was delivered by me

on 26 April 2018 at 3.30 pm, pursuant to r 11.5 of the High Court Rules

Registrar/Deputy Registrar Date:

Solicitors:           Stafford Klaassen, Epsom, Auckland

Marsden Woods Inskip Smith, Whangarei McElroys, Auckland

Counsel             P J Dale, Auckland

SULLIVAN v WELLSFORD PROPERTIES LIMITED [2018] NZHC 806 [26 April 2018]

[1]    In my judgment of 18 April 2018,1 I refused the plaintiffs’ application for an order staying execution of my costs judgment.2 The plaintiffs sought the stay on the condition that the costs of $87,997.97 awarded to the first and second defendants be held in an interest-bearing deposit in the first defendant’s solicitor’s trust account pending the plaintiffs’ appeal against my substantive judgment3 (or, alternatively, other nominated events).

[2]    The first and second defendants proposed that $57,997.97 of the costs awarded should remain in their solicitor’s trust account pending determination of the appeal, with the remaining $30,000 to be released to them. My order on the stay application was to that effect.4

[3]    The first and second defendants made their proposal in [2] above prior to the plaintiffs filing their application. In my judgment of 18 April 2018, I awarded costs on the unsuccessful stay application to the first and second defendants.5

[4]The parties have now filed a joint memorandum setting out agreed costs of

$4,683.00, together with disbursements of $110.00, making a total $4,793.00.

[5]    I am satisfied that the two steps taken by the first and second defendants as recorded in the memorandum were required and were taken. The time claimed and the rate for that time are appropriately recorded in the joint memorandum, as is the amount for disbursements.

[6]    I award the sum of $4,793.00, being the total of costs and disbursements, in favour of the first and second defendants against the first and second plaintiffs.

[7]The Registrar may seal a costs order in that sum.


Gordon J


1      Sullivan v Wellsford Properties Ltd [2018] NZHC 708.

2      Sullivan v Wellsford Properties Ltd [2018] NZHC 129.

3      Sullivan v Wellsford Properties Ltd [2017] NZHC 3047.

4      Sullivan v Wellsford Properties Ltd, above n 1, at [42].

5 At [43].

Details
AGLC
Sullivan v Wellsford Properties Limited [2018] NZHC 806
Case
[2018] NZHC 806
Decision Date

CaseChat Overview and Summary

The High Court of New Zealand Whangarei Registry considered an application for an order staying the execution of a costs judgment in the matter of Sullivan v Wellsford Properties Limited. The plaintiffs sought the stay on the condition that the awarded costs be held in an interest-bearing deposit in the first defendant's solicitor's trust account pending the plaintiffs' appeal against the substantive judgment. The defendants proposed that $57,997.97 of the costs awarded should remain in their solicitor's trust account, with the remaining $30,000 to be released to them. The plaintiffs' application for the stay was refused, and costs were awarded to the defendants.

The primary legal issue the court had to decide was whether to grant the plaintiffs' application for a stay of execution of the costs judgment on the condition that the awarded costs be held in an interest-bearing deposit pending the appeal. The court also had to consider the defendants' proposal for an alternative arrangement of holding a portion of the costs in the trust account and releasing the remaining amount to them.

The court found that the defendants' proposal was reasonable and in line with the requirements of the case. The court was satisfied that the time claimed and the rate for that time were appropriately recorded in the joint memorandum, as was the amount for disbursements. The court awarded the sum of $4,793.00, being the total of costs and disbursements, in favour of the first and second defendants against the first and second plaintiffs. The court ordered the Registrar to seal a costs order in that sum.

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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