Australian Mud Company Pty Ltd v Coretell Pty Ltd (No 7) [2017] FCA 1469

Australian Mud Company Pty Ltd v Coretell Pty Ltd (No 7) [2017] FCA 1469

The Court varied or set aside the previous costs orders and fixed costs in a lump sum because it had power to do so despite taxation having commenced, the Costs Practice Note and authorities favoured lump sum assessment where practicable to avoid further delay and expense, Coretell had not put on evidence or identified specific objections to AMC's detailed costs evidence, an experienced registrar had already closely examined the Bill and estimated recoverable costs, further taxation would add substantial cost and delay, and a further discount from the registrar's estimate produced a fair, logical and reasonable figure for finality and certainty.

Jurisdiction
Australia
Judgment Date
06 December 2017
Procedural Posture
Application for a Lump Sum Costs Order in an Intellectual Property Patents Proceeding / After Previous Costs Orders and After the Taxation Process Had Commenced
Outcome
Application for lump sum costs granted; prior costs orders varied or otherwise set aside and costs fixed in specified sums.
Legal Topics
['lump Sum Costs Order' 'taxation of Costs' 'variation or Setting Aside of Previous Costs Orders' 'federal Court Costs Discretion']
['costs' 'intellectual Property' 'patents and Associated Statutes'] ['lump Sum Costs Order' 'taxation of Costs' 'variation or Setting Aside of Previous Costs Orders' 'federal Court Costs Discretion']

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Procedural Posture

Application for a Lump Sum Costs Order in an Intellectual Property Patents Proceeding / After Previous Costs Orders and After the Taxation Process Had Commenced

Legal Issues

  1. 1 ["Whether the Court should vary or set aside earlier costs orders requiring costs to be agreed or assessed and instead fix the respondents' liability for costs in a lump sum." 'Whether a lump sum costs order can and should be made after the taxation process has commenced and after a registrar has issued an estimate.' 'Whether the proposed lump sum could be assessed in a way that was fair, logical and reasonable between the parties.']

Ratio Decidendi

The Court varied or set aside the previous costs orders and fixed costs in a lump sum because it had power to do so despite taxation having commenced, the Costs Practice Note and authorities favoured lump sum assessment where practicable to avoid further delay and expense, Coretell had not put on evidence or identified specific objections to AMC's detailed costs evidence, an experienced registrar had already closely examined the Bill and estimated recoverable costs, further taxation would add substantial cost and delay, and a further discount from the registrar's estimate produced a fair, logical and reasonable figure for finality and certainty.

Court Disposition

Application for lump sum costs granted; prior costs orders varied or otherwise set aside and costs fixed in specified sums.

Orders

  • ["Order 1 made on 29 April 2016 and order 5 made on 23 March 2016 be varied or otherwise set aside, and in lieu thereof the respondents pay the applicants' costs fixed in the amount of $3,170,000." "The respondents pay the applicants' costs of and incidental to the interlocutory application dated 29 September 2017...