Peter Davis & Ors v Halliday Financial Management Pty Limited & Ors (No 2) [2014] NSWSC 1618

Peter Davis & Ors v Halliday Financial Management Pty Limited & Ors (No 2) [2014] NSWSC 1618

The original case against the fourth defendant was plainly hopeless and, properly advised, the plaintiffs should have known that it had no chance of success. The foreshadowed amended case against him was then abandoned without evidentiary explanation. Those circumstances were sufficient to justify exercising the Court's discretion to order the plaintiffs to pay the fourth defendant's costs on the indemnity basis.

Jurisdiction
Australia
Judgment Date
14 November 2014
Procedural Posture
Costs / Application by the Fourth Defendant for Costs on the Indemnity Basis After the Plaintiffs Amended to Delete the Claim Against Him
Outcome
Fourth defendant's application for indemnity costs granted.
Legal Topics
['indemnity Costs' 'strike Out' 'amended Statement of Claim' 'abandoned Claim']
['costs' 'civil Procedure'] ['indemnity Costs' 'strike Out' 'amended Statement of Claim' 'abandoned Claim']

Case Brief

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Procedural Posture

Costs / Application by the Fourth Defendant for Costs on the Indemnity Basis After the Plaintiffs Amended to Delete the Claim Against Him

Legal Issues

  1. 1 ["Whether the plaintiffs should pay the fourth defendant's costs of the proceedings on the indemnity basis after no longer pressing their case against him" 'Whether the original pleading against the fourth defendant was so hopeless that, properly advised, the plaintiffs should have known it had no chance of success']

Ratio Decidendi

The original case against the fourth defendant was plainly hopeless and, properly advised, the plaintiffs should have known that it had no chance of success. The foreshadowed amended case against him was then abandoned without evidentiary explanation. Those circumstances were sufficient to justify exercising the Court's discretion to order the plaintiffs to pay the fourth defendant's costs on the indemnity basis.

Court Disposition

Fourth defendant's application for indemnity costs granted.

Orders

  • ["The plaintiffs are to pay the fourth defendant's costs of the proceedings on the indemnity basis, assessable forthwith."]