Links Golf Tasmania Pty Ltd v Sattler (No 2) [2012] FCA 1271

Links Golf Tasmania Pty Ltd v Sattler (No 2) [2012] FCA 1271

Due to certain claims prosecuted by Wood and Hetrel on behalf of LGT that were unmeritorious or not in the company's best interests, the order requiring LGT to pay all solicitor/client costs was varied: LGT to pay 60% of such costs, Wood and Hetrel to bear the remainder. Further, as to party/party costs, Wood and Hetrel were ordered to indemnify LGT for one half of the costs payable to Sattler and Sattler Nominees; this arrangement reflected both the appropriateness under s 242 and the extent of personal and shareholder benefit sought. The liabilities are proportional, not joint and several.

Parties
Plaintiff (vid 933 of 2009): Peter Wood; Plaintiff (vid 933 of 2009): Justin Hetrel; Defendant (vid 933 of 2009); Plaintiff (vid 204 of 2010): Links Golf Tasmania Pty Ltd (ACN 096 711 661); Defendant (vid 204 of 2010): Richard Sattler; Defendant (vid 204 of 2010): R.G. Sattler Nominees Pty Ltd (ACN 009 525 348)
Jurisdiction
Australia
Judgment Date
16 November 2012
Procedural Posture
Derivative and Related Costs Proceedings / Post Trial, Costs Determination
Outcome
Orders made varying previous costs orders; proportional allocation of costs between company and applicants; indemnity for costs; ancillary orders as specified.
Legal Topics
Derivative Proceedings, Costs Orders, Indemnity, Jurisdiction to Order Non Party Costs, Exercise of Judicial Discretion in Costs
Corporations Law Civil Procedure Derivative Proceedings Costs Orders Indemnity Jurisdiction to Order Non Party Costs Exercise of Judicial Discretion in Costs

Case Brief

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Parties

Peter Wood

Plaintiff (vid 933 of 2009)

Justin Hetrel

Plaintiff (vid 933 of 2009)

Links Golf Tasmania Pty Ltd (ACN 096 711 661)

Defendant (vid 933 of 2009); Plaintiff (vid 204 of 2010)

Richard Sattler

Defendant (vid 204 of 2010)

R.G. Sattler Nominees Pty Ltd (ACN 009 525 348)

Defendant (vid 204 of 2010)

Procedural Posture

Derivative and Related Costs Proceedings / Post Trial, Costs Determination

Legal Issues

  1. 1 Whether the order under s 242 of the Corporations Act requiring Links Golf Tasmania Pty Ltd to pay the plaintiffs' solicitor/client costs in a derivative action should be varied
  2. 2 Whether the applicants ought to pay their own solicitor/client costs in place of the company
  3. 3 Whether Wood and Hetrel should pay party/party costs of successful defendants in the main proceeding under s 242(c)

Ratio Decidendi

Due to certain claims prosecuted by Wood and Hetrel on behalf of LGT that were unmeritorious or not in the company's best interests, the order requiring LGT to pay all solicitor/client costs was varied: LGT to pay 60% of such costs, Wood and Hetrel to bear the remainder. Further, as to party/party costs, Wood and Hetrel were ordered to indemnify LGT for one half of the costs payable to Sattler and Sattler Nominees; this arrangement reflected both the appropriateness under s 242 and the extent of personal and shareholder benefit sought. The liabilities are proportional, not joint and several.

Court Disposition

Orders made varying previous costs orders; proportional allocation of costs between company and applicants; indemnity for costs; ancillary orders as specified.

Orders

  • Order 1 of 8 June 2010 (solicitor/client costs) varied; LGT to pay 60% of costs.
  • Liberty to apply for variation if 60% is not fair within 7 days.