IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY
CIV-2013-485-1511 [2014] NZHC 2434
IN THE MATTER OF an appeal under s 39 of the Property
(Relationships) Act 1976
BETWEEN
ANNETTE COLLEEN THOMPSON Appellant
AND
PUBLIC TRUST as administrator of the Estate of SCOTT PHILIP HILLMAN First Respondent
CRYSTAL PAM COSTELLO Second Resondent
On the papers Counsel
A G Gray for appellant
B J J Sheehan for second respondentJudgment:
3 October 2014
COSTS JUDGMENT OF CLIFFORD J
[1] I refer to the memoranda filed.
[2] I acknowledge that the general principle in relationship property proceedings used to be that both parties bear their own costs, because the resolution of these disputes is “something of benefit to both of them and in a sense neither should be regarded as the winner or the loser”.1 However, there are now numerous High Court authorities to the effect that costs should follow the event and be dealt with in
accordance with the normal civil rules.2 As Keane J observed in a 2012 decision
1 Gerbic v Gerbic (1991) 8 FRNZ 518 at 542; de Boyette v de Boyette (1993) 10 FRNZ 405 (HC)
at 406.
2 Anderson v Anderson HC New Plymouth CIV-2004-443-25, 16 July 2004 at [33]; FT v JML [2012] NZHC 1388 at [29]; SB v DC HC Auckland CIV-2011-404-1005, 4 October 2011; FT v JML [2012] NZHC 2233 at [9]; Radisich v Taylor HC Auckland CIV-2007-404-7578, 16 April
2008 at [22]-[23].
THOMPSON v PUBLIC TRUST AND COSTELLO [2014] NZHC 2434 [3 October 2014]
“These days the winning party in property relationship cases has a more recognised right to an award on the principle that costs follow the event than was so even a few years ago.”3
[3] The general costs principles applicable to civil appeals to the High Court should therefore apply. Rule 14.1 gives the Court a discretion as to costs but that discretion is fettered by the specific costs rules in rr 14.2 to 14.10.4 Those rules,
pertinently include that costs:5
(a) follow the event;
(b)should reflect the complexity and significance of the proceeding and be assessed by applying the appropriate daily recovery rate;
(c) should not exceed the costs actually incurred by the party claiming costs; and
(d)should be determined, as far as possible, predictably and expeditiously.
[4] The Court may refuse or reduce costs where a good reason exists to depart from the above principles.6 Such reasons include that the party claiming costs contributed unnecessarily to the time or expense of the proceeding; that the party claiming costs did not succeed on a particular issue; and that the issues at stake were of little significance. No such consideration arises here.
[5] Subject to the two matters I now mention, Mrs Thompson is entitled to a costs order on a 2B basis for the appeal. The two matters are:
(a) The appeal was, in the circumstances all are familiar with, adjourned when first called. The proceedings that morning did occupy some
3 FT v JML, above n 2, at [29];
4 Manukau Golf Club Inc v Shoye Venture Ltd [2012] NZSC 109, [2013] 1 NZLR 285 at [7] and
[16].
5 High Court Rules, r 14.2.
6 High Court Rules, r 14.7.
time, but I do not think they should be reflected in costs. Accordingly, costs are to be calculated on the basis of a half day appeal.
(b)Secondly, costs are not to exceed the amount Mrs Thompson will be required to pay to Legal Aid. I do not know what that amount is.
[6] I trust the parties can now resolve matters.
“Clifford J”
Solicitors:
Buchanan Gray, Wellington.
ARL Lawyers, Lower Hutt.
- AGLC
- Thompson v Public Trust [2014] NZHC 2434
- Case
- [2014] NZHC 2434
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the appellant was entitled to an award of costs on the appeal and, if so, the extent of that award. The court considered the general principle that in relationship property proceedings, both parties typically bear their own costs. However, the court recognised a shift towards applying the normal civil rules, where costs should follow the event, and the winning party has a more recognised right to an award of costs.
The court applied the general costs principles applicable to civil appeals, noting that costs should follow the event, reflect the complexity and significance of the proceeding, and be assessed by applying the appropriate daily recovery rate. The court also considered whether any reasons existed to depart from these principles, such as the appellant contributing unnecessarily to the time or expense of the proceeding, or the issues at stake being of little significance. Finding no such reasons, the court determined that the appellant was entitled to a costs order on a 2B basis for the appeal, subject to certain conditions. The court calculated costs based on a half-day appeal and limited the award to the amount the appellant would be required to pay to Legal Aid.
The court ordered that the appellant was entitled to a costs order on a 2B basis for the appeal, subject to the conditions outlined in the judgment. The court directed that the parties resolve the matter of the exact amount owed to Legal Aid.
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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