Hancock v Rinehart (Lump sum costs) [2015] NSWSC 1640

Hancock v Rinehart (Lump sum costs) [2015] NSWSC 1640

All remaining disputed costs categorized as 'out-of-scope' are allowed as incident to the indemnity costs order; the gross sum awarded must be reduced to exclude costs attributable to YPOL's higher hourly rate (rate B), which was not properly recoverable under the costs agreement; JW&S costs are recoverable to the extent actually incurred by the plaintiffs (not paid by former plaintiff Hope), proportional to their liability; no further general discount is required due to detailed itemized scrutiny having already occurred and no findings of unreasonableness by the defendant; interest is to be awarded on apportioned costs from the respective dates of payment at UCPR rates.

Parties
First Plaintiff: John Langley Hancock; Second Plaintiff: Bianca Hope Rinehart; First Defendant: Gina Hoper Rinehart
Jurisdiction
Australia
Judgment Date
05 November 2015
Procedural Posture
Costs Application / Application for Gross Sum (lump Sum) Costs Order Post Final Orders
Outcome
Application for gross sum costs order allowed in part; gross sum fixed subject to adjustments; interest awarded.
Legal Topics
Costs, Gross Sum Costs Order, Indemnity Costs, Party/party and Solicitor/client Costs, Construction of Costs Orders, Interest on Costs
Equity Civil Procedure Costs Gross Sum Costs Order Indemnity Costs Party/party and Solicitor/client Costs Construction of Costs Orders Interest on Costs

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Parties

John Langley Hancock

First Plaintiff

Bianca Hope Rinehart

Second Plaintiff

Gina Hoper Rinehart

First Defendant

Procedural Posture

Costs Application / Application for Gross Sum (lump Sum) Costs Order Post Final Orders

Legal Issues

  1. 1 Whether claimed costs include costs outside scope of indemnity costs order of 9 October 2013
  2. 2 Whether impugned costs relate to removal of first defendant as trustee
  3. 3 Whether claimed costs are covered by other extant costs orders

Ratio Decidendi

All remaining disputed costs categorized as 'out-of-scope' are allowed as incident to the indemnity costs order; the gross sum awarded must be reduced to exclude costs attributable to YPOL's higher hourly rate (rate B), which was not properly recoverable under the costs agreement; JW&S costs are recoverable to the extent actually incurred by the plaintiffs (not paid by former plaintiff Hope), proportional to their liability; no further general discount is required due to detailed itemized scrutiny having already occurred and no findings of unreasonableness by the defendant; interest is to be awarded on apportioned costs from the respective dates of payment at UCPR rates.

Court Disposition

Application for gross sum costs order allowed in part; gross sum fixed subject to adjustments; interest awarded.

Orders

  • Amount payable under the 9 October 2013 order (and earlier orders involving the first defendant) to be fixed for the amount claimed, subject to adjustments:
  • Exclusion of costs attributable to YPOL's higher hourly rate (rate B).