Dentown Pty Limited v PWI Group Pty Limited as trustee of Australia No 1 Group Trust (No 2) [2020] NSWSC 518

Dentown Pty Limited v PWI Group Pty Limited as trustee of Australia No 1 Group Trust (No 2) [2020] NSWSC 518

Because the second and third defendants had become bankrupt and proceedings against them were stayed, the plaintiffs were granted leave to discontinue against them without liability for their costs. On the unchallenged affidavit and supporting documents of the second plaintiff, the unpaid commissions owing by the fourth and fifth defendants were established at $1,322,611.59, with interest of $226,854. The defendants' rejection of the 14 July 2017 Calderbank offer was unreasonable because the plaintiffs later obtained judgment for a far greater sum, justifying indemnity costs from that date.

Jurisdiction
Australia
Judgment Date
08 May 2020
Procedural Posture
Equity Corporations List / Consequential Orders After Earlier Judgment, Including Fixing Unpaid Commissions, Discontinuance Against Bankrupt Defendants, and Costs
Outcome
Leave granted to discontinue against the second and third defendants; judgment entered against the fourth and fifth defendants for unpaid commissions and interest; indemnity costs ordered from 14 July 2017; proceedings noted as complete.
Legal Topics
['unpaid Commissions Under Separation Agreement' 'discontinuance Against Bankrupt Defendants' 'stay Under Bankruptcy Legislation' 'indemnity Costs' 'calderbank Offer' 'interest on Judgment']
['corporations' 'civil Procedure' 'bankruptcy' 'costs'] ['unpaid Commissions Under Separation Agreement' 'discontinuance Against Bankrupt Defendants' 'stay Under Bankruptcy Legislation' 'indemnity Costs' 'calderbank Offer' 'interest on Judgment']

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Procedural Posture

Equity Corporations List / Consequential Orders After Earlier Judgment, Including Fixing Unpaid Commissions, Discontinuance Against Bankrupt Defendants, and Costs

Legal Issues

  1. 1 ['Whether leave should be granted to discontinue proceedings against the second and third defendants after they became bankrupt.' "Whether judgment should be entered against the fourth and fifth defendants for the second plaintiff's unpaid commissions and interest." 'Whether the plaintiffs were entitled to indemnity costs from 14 July 2017 based on rejection of a Calderbank offer.']

Ratio Decidendi

Because the second and third defendants had become bankrupt and proceedings against them were stayed, the plaintiffs were granted leave to discontinue against them without liability for their costs. On the unchallenged affidavit and supporting documents of the second plaintiff, the unpaid commissions owing by the fourth and fifth defendants were established at $1,322,611.59, with interest of $226,854. The defendants' rejection of the 14 July 2017 Calderbank offer was unreasonable because the plaintiffs later obtained judgment for a far greater sum, justifying indemnity costs from that date.

Court Disposition

Leave granted to discontinue against the second and third defendants; judgment entered against the fourth and fifth defendants for unpaid commissions and interest; indemnity costs ordered from 14 July 2017; proceedings noted as complete.

Orders

  • ["Grant leave to the plaintiffs to discontinue the proceedings against the second defendant, Ji Wang, and the third defendant, Chao Nie, without prejudice to any rights of the plaintiffs on the claims made against them and with no liability for the second and third defendants' costs, noting that they remain liable...