Cook v Pasminco Ltd [2000] FCA 1819

Cook v Pasminco Ltd [2000] FCA 1819

The applicants' solicitors are to pay the respondents' costs on an indemnity basis because they commenced proceedings in the Federal Court based on claims under the Trade Practices Act 1974 (ss 75AD, 75AG) that were without any, or any proper, consideration as to prospects of success, thereby irresponsibly seeking to attract federal jurisdiction; such conduct amounts to a dereliction of duty justifying the order under the established principles on solicitor's liability for costs.

Jurisdiction
Australia
Judgment Date
12 December 2000
Procedural Posture
Application for Costs Order Against Non Party Solicitors Following Dismissal for Lack of Jurisdiction / Post Dismissal, Costs Determination
Outcome
Applicants' solicitors ordered to pay respondents' costs; detailed mechanism for assessment and limitation of costs.
Legal Topics
['indemnity Costs' 'representative Proceedings (class Actions)' 'jurisdiction' 'legal Professional Privilege' "solicitor's Liability for Costs"]
['civil Procedure'] ['indemnity Costs' 'representative Proceedings (class Actions)' 'jurisdiction' 'legal Professional Privilege' "solicitor's Liability for Costs"]

Case Brief

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Procedural Posture

Application for Costs Order Against Non Party Solicitors Following Dismissal for Lack of Jurisdiction / Post Dismissal, Costs Determination

Legal Issues

  1. 1 ["Whether the applicants' solicitors should pay the respondents' costs on an indemnity basis after bringing proceedings based on federal claims held to be untenable and designed to fabricate jurisdiction in the Federal Court;" 'Whether a costs agreement between solicitor and client attracts legal professional privilege;' "The relevance of the solicitors' promotion of the group proceeding, pecuniary interest, and selection of a bankrupt applicant to a costs order against them."]

Ratio Decidendi

The applicants' solicitors are to pay the respondents' costs on an indemnity basis because they commenced proceedings in the Federal Court based on claims under the Trade Practices Act 1974 (ss 75AD, 75AG) that were without any, or any proper, consideration as to prospects of success, thereby irresponsibly seeking to attract federal jurisdiction; such conduct amounts to a dereliction of duty justifying the order under the established principles on solicitor's liability for costs.

Court Disposition

Applicants' solicitors ordered to pay respondents' costs; detailed mechanism for assessment and limitation of costs.

Orders

  • ["The applicants' solicitors, Coleman & Greig, pay the respondents' costs of the proceeding on an indemnity basis, excluding costs unreasonably incurred or unreasonable in amount." "The applicants' solicitors, Coleman & Greig, pay the respondents' costs of the respondents' motion filed on 28 June 2000 on the usual...