In the matter of Sirrah Pty Ltd [2024] NSWSC 1277

In the matter of Sirrah Pty Ltd [2024] NSWSC 1277

A gross sum costs order is appropriate where the evidence demonstrates that the quantum sought is logical, fair and reasonable, and where detailed assessment would result in disproportionate delay and cost. The Plaintiffs are entitled to a gross sum order as calculated with accepted discounts, and Mr Hayes as liquidator (and Sirrah) is entitled to a gross sum order, also subject to a discount and limitation to appropriate representation during relevant hearing periods. The Court rejected the Applicant's submissions for referral, apportionment or nominalisation of costs.

Parties
Applicant on the Interlocutory Process Dated 4 July 2024 / Respondent on Gross Sum Costs Applications: Domenic Calabretta as purported receiver of the assets of Michelle Harris; Plaintiffs / Respondents on Mr Calabretta's Interlocutory Process Dated 4 July 2024 / Applicant on Gross Sum Costs Application: Gregory Thomas Harris and Monica Mary Brown as executors of the estate of the late Aileen Joyce Harris; First Defendant / Applicant on Gross Sum Costs Application: Sirrah Pty Ltd (in liq); Second Defendant: The Bankrupt Estate of William Francis Harris; Third Defendant: Michelle Joy Harris; Fourth Defendant: Harris Health Care Pty Ltd (receivers and managers appointed) (in liq); Respondent on Mr Calabretta's Interlocutory Process Dated 4 July 2024 / Applicant on Gross Sum Costs Application: Alan John Hayes in his capacity as liquidator of Sirrah Pty Ltd (in liq)
Jurisdiction
Australia
Judgment Date
11 October 2024
Procedural Posture
Corporations Costs Application / Determination of Gross Sum Costs Orders
Outcome
Gross sum costs orders approved; parties to submit agreed orders
Legal Topics
Gross Sum Costs, Receiver Appointment Validity, Party/party Costs, Indemnity Costs, Liquidation Proceedings
Costs Corporations Law Gross Sum Costs Receiver Appointment Validity Party/party Costs Indemnity Costs Liquidation Proceedings

Case Brief

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Parties

Domenic Calabretta as purported receiver of the assets of Michelle Harris

Applicant on the Interlocutory Process Dated 4 July 2024 / Respondent on Gross Sum Costs Applications

Gregory Thomas Harris and Monica Mary Brown as executors of the estate of the late Aileen Joyce Harris

Plaintiffs / Respondents on Mr Calabretta's Interlocutory Process Dated 4 July 2024 / Applicant on Gross Sum Costs Application

Sirrah Pty Ltd (in liq)

First Defendant / Applicant on Gross Sum Costs Application

The Bankrupt Estate of William Francis Harris

Second Defendant

Michelle Joy Harris

Third Defendant

Harris Health Care Pty Ltd (receivers and managers appointed) (in liq)

Fourth Defendant

Alan John Hayes in his capacity as liquidator of Sirrah Pty Ltd (in liq)

Respondent on Mr Calabretta's Interlocutory Process Dated 4 July 2024 / Applicant on Gross Sum Costs Application

Procedural Posture

Corporations Costs Application / Determination of Gross Sum Costs Orders

Legal Issues

  1. 1 Whether a gross sum costs order should be made
  2. 2 Quantum of gross sum costs to be ordered
  3. 3 Whether costs should be apportioned for time spent on specific issues

Ratio Decidendi

A gross sum costs order is appropriate where the evidence demonstrates that the quantum sought is logical, fair and reasonable, and where detailed assessment would result in disproportionate delay and cost. The Plaintiffs are entitled to a gross sum order as calculated with accepted discounts, and Mr Hayes as liquidator (and Sirrah) is entitled to a gross sum order, also subject to a discount and limitation to appropriate representation during relevant hearing periods. The Court rejected the Applicant's submissions for referral, apportionment or nominalisation of costs.

Court Disposition

Gross sum costs orders approved; parties to submit agreed orders

Orders

  • Plaintiffs to submit agreed orders quantifying costs in gross sum as per affidavit evidence
  • Mr Calabretta to pay Plaintiffs' gross sum costs as quantified by Mr See