In the matter of St Gregory’s Armenian School Inc [2020] NSWSC 1124

In the matter of St Gregory’s Armenian School Inc [2020] NSWSC 1124

An order for indemnity costs against the Plaintiffs/Applicants was warranted in respect of the 2 March 2020 Costs Application because they were on clear notice of the fundamental flaws in their application and yet continued, altered grounds without proper factual articulation, and unnecessarily put the Liquidators to significant additional cost. Costs of the 10 June 2020 Interlocutory Process and subsequent hearing are to be on the ordinary basis, as the deficiencies, while significant, did not reach the level required for indemnity costs. No order as to costs was appropriate for the 15 July 2020 Interlocutory Process or the costs application itself.

Parties
First Plaintiff/first Applicant: Michael Ghougassian; Second Plaintiff/second Applicant: Daniel Ghougassian; First Defendant/respondent: Philip Campbell-Wilson and John McInerney in their capacity as Liquidators of St Gregory's Armenian School Inc (in liq); Second Defendant/respondent: St Gregory's Armenian School Inc (in liq)
Jurisdiction
Australia
Judgment Date
24 August 2020
Procedural Posture
Interlocutory Costs Applications in Ongoing Liquidation Proceedings / Determination of Costs Following Interlocutory Applications; on the Papers
Outcome
Costs largely awarded to the Defendants/Respondents, with indemnity costs for the 2 March 2020 application; ordinary costs for 10 June 2020 application; no order as to costs for 15 July 2020 application or the costs application itself.
Legal Topics
Costs, Indemnity Costs, Liquidation, Interlocutory Proceedings
Civil Procedure Corporations Law Costs Indemnity Costs Liquidation Interlocutory Proceedings

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Parties

Michael Ghougassian

First Plaintiff/first Applicant

Daniel Ghougassian

Second Plaintiff/second Applicant

Philip Campbell-Wilson and John McInerney in their capacity as Liquidators of St Gregory's Armenian School Inc (in liq)

First Defendant/respondent

St Gregory's Armenian School Inc (in liq)

Second Defendant/respondent

Procedural Posture

Interlocutory Costs Applications in Ongoing Liquidation Proceedings / Determination of Costs Following Interlocutory Applications; on the Papers

Legal Issues

  1. 1 Whether indemnity costs should be awarded against the Plaintiffs in respect of the 2 March 2020 Interlocutory Process (Costs Application)
  2. 2 Whether costs of the 10 June 2020 Interlocutory Process (Subpoena Application) should be on the ordinary or indemnity basis
  3. 3 Appropriate costs orders for each interlocutory application

Ratio Decidendi

An order for indemnity costs against the Plaintiffs/Applicants was warranted in respect of the 2 March 2020 Costs Application because they were on clear notice of the fundamental flaws in their application and yet continued, altered grounds without proper factual articulation, and unnecessarily put the Liquidators to significant additional cost. Costs of the 10 June 2020 Interlocutory Process and subsequent hearing are to be on the ordinary basis, as the deficiencies, while significant, did not reach the level required for indemnity costs. No order as to costs was appropriate for the 15 July 2020 Interlocutory Process or the costs application itself.

Court Disposition

Costs largely awarded to the Defendants/Respondents, with indemnity costs for the 2 March 2020 application; ordinary costs for 10 June 2020 application; no order as to costs for 15 July 2020 application or the costs application itself.

Orders

  • The Plaintiffs, the Messrs Ghougassian, pay the Defendants' costs of and incidental to their Interlocutory Process filed on 2 March 2020 on an indemnity basis, as agreed or as assessed.
  • The Plaintiffs, the Messrs Ghougassian, pay the Defendants' costs of and incidental to their Interlocutory Process filed on 10 June 2020 and the hearing on 18 June 2020 on an ordinary basis, as agreed or as assessed.