Cao v Apollo Phoenix Resources Pty Ltd (No 3) [2019] FCA 1779

Cao v Apollo Phoenix Resources Pty Ltd (No 3) [2019] FCA 1779

It was appropriate in the circumstances for the Court to order lump-sum costs, as the proceedings had concluded following Mr Cao's failure to appear and meet security requirements, there was sufficient material in the cost summaries and affidavits to assess reasonableness, and a detailed taxation would be contrary to the Federal Court's preference for efficiency where practicable. The quantum claimed by the defendants (after applying discounts and reductions) was found to be fair, reasonable and proportionate to the conduct and complexity of the proceedings.

Parties
Plaintiff/respondent: Zhong Cao; First Defendant/first Applicant: Apollo Phoenix Resources Pty Ltd ACN 158 977 881; Second Defendant/second Applicant: Christopher John Daws; Third Defendant/third Applicant: John Timothy Kingswood
Jurisdiction
Australia
Judgment Date
31 October 2019
Procedural Posture
Interlocutory Application / Costs – Application for Lump Sum Orders After Dismissal of Main Proceeding
Outcome
Applications for lump-sum costs granted; lump-sum costs orders made against Mr Cao in favour of the defendants as specified.
Legal Topics
Lump Sum Costs Orders, Assessment of Legal Costs, Party Party Costs, Federal Court Costs Procedures
Civil Procedure Costs Lump Sum Costs Orders Assessment of Legal Costs Party Party Costs Federal Court Costs Procedures

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Parties

Zhong Cao

Plaintiff/respondent

Apollo Phoenix Resources Pty Ltd ACN 158 977 881

First Defendant/first Applicant

Christopher John Daws

Second Defendant/second Applicant

John Timothy Kingswood

Third Defendant/third Applicant

Procedural Posture

Interlocutory Application / Costs – Application for Lump Sum Orders After Dismissal of Main Proceeding

Legal Issues

  1. 1 Whether costs should be assessed and ordered on a lump-sum basis
  2. 2 Whether the quantum of costs claimed is fair and reasonable

Ratio Decidendi

It was appropriate in the circumstances for the Court to order lump-sum costs, as the proceedings had concluded following Mr Cao's failure to appear and meet security requirements, there was sufficient material in the cost summaries and affidavits to assess reasonableness, and a detailed taxation would be contrary to the Federal Court's preference for efficiency where practicable. The quantum claimed by the defendants (after applying discounts and reductions) was found to be fair, reasonable and proportionate to the conduct and complexity of the proceedings.

Court Disposition

Applications for lump-sum costs granted; lump-sum costs orders made against Mr Cao in favour of the defendants as specified.

Orders

  • The plaintiff (Mr Cao) pay the first defendant's costs on a lump-sum basis in the amount of $402,615.34.
  • The plaintiff pay the second and third defendants' costs on a lump-sum basis in the amount of $201,442.65.