Masters v Lombe (liquidator), in the matter of Babcock & Brown Limited (in liq) (Lump Sum Costs) [2024] FCA 1336

Masters v Lombe (liquidator), in the matter of Babcock & Brown Limited (in liq) (Lump Sum Costs) [2024] FCA 1336

The Court has power under s 25(2B)(ab) of the Act and r 40.02 to order existing costs orders be determined by lump sum, even when the original trial and appeal judges are unavailable. Given the procedural history, complexity, and demonstrated inefficiencies of taxation, a lump sum determination is preferable to avoid delay and unnecessary expense. The quantification should be by Registrar as Referee with submissions from both sides.

Parties
Plaintiff / Appellant: Michael Masters and others; Plaintiff / Appellant: Bruce Broome and others; Plaintiff / Appellant: Sarah Wilhelm and others; Defendant / Respondent / Cost Applicant: David Lombe in his capacity as Liquidator of Babcock & Brown Limited (In Liquidation)
Jurisdiction
Australia
Judgment Date
21 November 2024
Procedural Posture
Costs Application (lump Sum Determination) Following Dismissal of Primary and Appeal Proceedings / Post Judgment, Application for Quantum of Costs to Be Determined on Lump Sum Basis
Outcome
Application for determination of costs on lump sum basis granted. Quantification referred to Registrar as Referee. Costs of the interlocutory application to be borne by each party.
Legal Topics
Lump Sum Costs Determination, Taxation of Costs, Appellate Procedure, Discretion to Award Costs as Lump Sum, Referral to Registrar as Referee
Civil Procedure Costs Law Insolvency Lump Sum Costs Determination Taxation of Costs Appellate Procedure Discretion to Award Costs as Lump Sum Referral to Registrar as Referee

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Parties

Michael Masters and others

Plaintiff / Appellant

Bruce Broome and others

Plaintiff / Appellant

Sarah Wilhelm and others

Plaintiff / Appellant

David Lombe in his capacity as Liquidator of Babcock & Brown Limited (In Liquidation)

Defendant / Respondent / Cost Applicant

Procedural Posture

Costs Application (lump Sum Determination) Following Dismissal of Primary and Appeal Proceedings / Post Judgment, Application for Quantum of Costs to Be Determined on Lump Sum Basis

Legal Issues

  1. 1 Whether Court should order that existing costs orders in primary and appeal proceedings be determined on a lump sum basis
  2. 2 Whether a single judge has the power to make such orders where primary judge/Full Court is no longer available

Ratio Decidendi

The Court has power under s 25(2B)(ab) of the Act and r 40.02 to order existing costs orders be determined by lump sum, even when the original trial and appeal judges are unavailable. Given the procedural history, complexity, and demonstrated inefficiencies of taxation, a lump sum determination is preferable to avoid delay and unnecessary expense. The quantification should be by Registrar as Referee with submissions from both sides.

Court Disposition

Application for determination of costs on lump sum basis granted. Quantification referred to Registrar as Referee. Costs of the interlocutory application to be borne by each party.

Orders

  • The costs payable by the cost orders in the six related proceedings are to be determined on a lump sum basis.
  • A Registrar of the Court will act as Referee to quantify the lump sums after receiving materials as directed.