Huang v Muse Beauty Salon Waterloo Pty Ltd (No 5); Muse Beauty Salon Waterloo Pty Ltd v Huang (No 5) [2022] NSWDC 248

Huang v Muse Beauty Salon Waterloo Pty Ltd (No 5); Muse Beauty Salon Waterloo Pty Ltd v Huang (No 5) [2022] NSWDC 248

The Court dismissed the applications for indemnity and lump sum costs orders, finding no improper conduct by the Xie interests or unreasonableness in rejecting the Calderbank offer at the relevant time. While the Huang interests were successful, the Court considered the conduct of both parties, the complexity and handling of evidence, and the disproportionate costs, and exercised its discretion to reduce all costs recoverable by the successful party by 15%.

Parties
Plaintiff (2018/00117938), First Defendant (2018/00364820): Yi-Ching Huang; First Defendant (2018/00117938), First Plaintiff (2018/00364820): Muse Beauty Salon Waterloo Pty Ltd; Second Defendant (2018/00117938), Second Plaintiff (2018/00364820): Kailing Xie; Third Defendant (2018/00117938), Third Plaintiff (2018/00364820): Yuling Bai; Fourth Plaintiff (2018/00364820): The Muse Beauty Salon Pty Ltd; Second Defendant (2018/00364820): Yew Mun Nam
Jurisdiction
Australia
Judgment Date
06 July 2022
Procedural Posture
Civil / Post Trial, Costs Determination
Outcome
Applications for special costs dismissed, costs recoverable as agreed or assessed, reduced by 15%; partial award of costs for the interlocutory applications.
Legal Topics
Calderbank Offer, Indemnity Costs, Lump Sum Costs Order, Costs Reduction for Conduct, Costs Discretion
Costs Calderbank Offer Indemnity Costs Lump Sum Costs Order Costs Reduction for Conduct Costs Discretion

Case Brief

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Parties

Yi-Ching Huang

Plaintiff (2018/00117938), First Defendant (2018/00364820)

Muse Beauty Salon Waterloo Pty Ltd

First Defendant (2018/00117938), First Plaintiff (2018/00364820)

Kailing Xie

Second Defendant (2018/00117938), Second Plaintiff (2018/00364820)

Yuling Bai

Third Defendant (2018/00117938), Third Plaintiff (2018/00364820)

The Muse Beauty Salon Pty Ltd

Fourth Plaintiff (2018/00364820)

Yew Mun Nam

Second Defendant (2018/00364820)

Procedural Posture

Civil / Post Trial, Costs Determination

Legal Issues

  1. 1 Whether an indemnity costs order should be made against the unsuccessful parties based on Calderbank offer or litigation conduct
  2. 2 Whether a lump sum costs order should be made
  3. 3 Whether successful party's costs should be reduced due to conduct and disproportionate costs

Ratio Decidendi

The Court dismissed the applications for indemnity and lump sum costs orders, finding no improper conduct by the Xie interests or unreasonableness in rejecting the Calderbank offer at the relevant time. While the Huang interests were successful, the Court considered the conduct of both parties, the complexity and handling of evidence, and the disproportionate costs, and exercised its discretion to reduce all costs recoverable by the successful party by 15%.

Court Disposition

Applications for special costs dismissed, costs recoverable as agreed or assessed, reduced by 15%; partial award of costs for the interlocutory applications.

Orders

  • The Huang interests' applications for special costs orders are dismissed.
  • Order 3 made on 7 April 2022 is varied: in matter 2018/00117938, defendants to pay plaintiff's costs as agreed or assessed, reduced by 15%.