Neobev Pty Ltd v Bacchus Distillery Pty Ltd (Administrators Appointed) (No 5) [2014] FCA 95

Neobev Pty Ltd v Bacchus Distillery Pty Ltd (Administrators Appointed) (No 5) [2014] FCA 95

The costs question should not be adjourned because the Court had determined the contested issues put before it, especially ownership of the invention and 593 Patent, and Bacchus had not shown that the proceeding was futile. Neobev was substantially successful on the main issue, but Bacchus succeeded on some issues and had existing costs orders in its favour. Those matters justified reducing Neobev's recoverable costs by 30%, resulting in Bacchus paying 70% of Neobev's and the Cross Respondents' costs, subject to existing costs orders in favour of Bacchus.

Jurisdiction
Australia
Judgment Date
19 February 2014
Procedural Posture
Costs Determination in Federal Court Proceeding / After Final Orders Made on 4 February 2014
Outcome
Bacchus was ordered to pay 70% of the Applicant's and Cross Respondents' costs, subject to specified existing costs orders in Bacchus' favour, and Neobev was released from its security obligation after three business days.
Legal Topics
['costs Discretion' 'partial Success' 'reduction of Costs' 'security for Costs' 'calderbank Offer' 'patent Inventorship' 'patent Ownership' 'confidential Information and Copyright Works Licence']
['costs' 'intellectual Property' 'insolvency'] ['costs Discretion' 'partial Success' 'reduction of Costs' 'security for Costs' 'calderbank Offer' 'patent Inventorship' 'patent Ownership' 'confidential Information and Copyright Works Licence']

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Procedural Posture

Costs Determination in Federal Court Proceeding / After Final Orders Made on 4 February 2014

Legal Issues

  1. 1 ['Whether the question of costs should be adjourned until after determination of a Supreme Court of Victoria proceeding concerning the invention and 593 Patent.' "Whether Bacchus should pay Neobev's costs notwithstanding that Neobev succeeded on some but not all issues." 'Whether any costs order should be affected by alleged futility, collateral purpose, a settlement offer, or late amendments.' "Whether Neobev should be released from its obligation to provide security for Bacchus' costs."]

Ratio Decidendi

The costs question should not be adjourned because the Court had determined the contested issues put before it, especially ownership of the invention and 593 Patent, and Bacchus had not shown that the proceeding was futile. Neobev was substantially successful on the main issue, but Bacchus succeeded on some issues and had existing costs orders in its favour. Those matters justified reducing Neobev's recoverable costs by 30%, resulting in Bacchus paying 70% of Neobev's and the Cross Respondents' costs, subject to existing costs orders in favour of Bacchus.

Court Disposition

Bacchus was ordered to pay 70% of the Applicant's and Cross Respondents' costs, subject to specified existing costs orders in Bacchus' favour, and Neobev was released from its security obligation after three business days.

Orders

  • ["The Respondent pay to the Applicant 70% of the Applicant's costs of the claim, including any reserved costs, but excluding those costs which are the subject of order 4 of the orders made by the Court on 12 December 2013 and order 3 of the orders made by the Court on 16 December 2013." "The Respondent/Cross...