Shun Sheng Pty Ltd v Lei (No 6) [2024] NSWSC 1613

Shun Sheng Pty Ltd v Lei (No 6) [2024] NSWSC 1613

Costs should be distributed among parties on a claim-by-claim basis, with general costs following the outcome of the predominant partnership dispute; no party was entitled to indemnity costs, as the settlement offers did not meet the Calderbank or other relevant requirements and their rejection was not unreasonable in the circumstances.

Parties
First Plaintiff: Shun Sheng Pty Limited; Second Plaintiff: Sunshine Island (Aust) Pty Limited; Third Plaintiff: Xue Feng Wei; First Defendant: Jun Lei; Second Defendant: Theo Kitsos; First Cross Claimant: Jun Lei; Second Cross Claimant: Theo Kitsos; First Cross Defendant: Shun Sheng Pty Limited; Second Cross Defendant: Xue Feng Wei
Jurisdiction
Australia
Judgment Date
16 December 2024
Procedural Posture
Equity Costs Determination in Multi Party Partnership Dissolution / Post Final Orders; Costs Judgment
Outcome
Application for indemnity costs refused; costs distributed as per orders below.
Legal Topics
Costs Costs Follow the Event, Costs Multiple Claims and Cross Claims, Partnership Dissolution, Indemnity Costs, Calderbank Offers
Equity Partnerships Costs Costs Costs Follow the Event Costs Multiple Claims and Cross Claims Partnership Dissolution Indemnity Costs Calderbank Offers

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Parties

Shun Sheng Pty Limited

First Plaintiff

Sunshine Island (Aust) Pty Limited

Second Plaintiff

Xue Feng Wei

Third Plaintiff

Jun Lei

First Defendant

Theo Kitsos

Second Defendant

Jun Lei

First Cross Claimant

Theo Kitsos

Second Cross Claimant

Shun Sheng Pty Limited

First Cross Defendant

Xue Feng Wei

Second Cross Defendant

Procedural Posture

Equity Costs Determination in Multi Party Partnership Dissolution / Post Final Orders; Costs Judgment

Legal Issues

  1. 1 How should costs be allocated among multiple parties following complex partnership dissolution proceedings?
  2. 2 Was either party entitled to indemnity costs based on Calderbank-type offers?

Ratio Decidendi

Costs should be distributed among parties on a claim-by-claim basis, with general costs following the outcome of the predominant partnership dispute; no party was entitled to indemnity costs, as the settlement offers did not meet the Calderbank or other relevant requirements and their rejection was not unreasonable in the circumstances.

Court Disposition

Application for indemnity costs refused; costs distributed as per orders below.

Orders

  • Third plaintiff (Ms Wei) to pay the second defendant's (Mr Kitsos') costs solely referable to her claims against him.
  • Second plaintiff (Sunshine Island Pty Limited) to pay the first defendant's (Ms Lei's) costs solely referable to its claim against her, including costs of her points of cross-claim.