Smith v Starke, in the matter of Action Paintball Games Pty Ltd (in liq) (No 3) [2016] FCA 40

Smith v Starke, in the matter of Action Paintball Games Pty Ltd (in liq) (No 3) [2016] FCA 40

The plaintiffs obtained judgment for a significant monetary sum, and the relevant event for costs purposes was the judgment in their favour. Although they recovered much less than claimed and the defendants successfully resisted many payment claims, the claims arose from the same matrix of facts, no additional hearing time was spent on individual payments, and the plaintiffs did not act unreasonably in claiming all payments during the relevant four-year period. There were no special circumstances justifying departure from the general rule that costs follow the event, and the plaintiffs' more favourable November 2014 offer further supported an order that the defendants pay the plaintiffs'...

Jurisdiction
Australia
Judgment Date
04 February 2016
Procedural Posture
Commercial and Corporations; Corporations and Corporate Insolvency Proceeding Concerning Unreasonable Director Related Transactions / Determination of Final Orders, Interest and Costs Following Reasons Published in Smith V Starke, in the Matter of Action Paintball Games Pty Ltd (in Liq) (no 2) [2015] FCA 1119
Outcome
Judgment and final orders for the plaintiffs, including monetary relief, interest and costs.
Legal Topics
['unreasonable Director Related Transactions' 'orders Under S 588 FF of the Corporations Act 2001 (cth)' 'costs Follow the Event' 'calderbank Offer' 'pre Judgment Interest Under S 51 A(1) of the Federal Court of Australia Act 1976 (cth)']
['corporations Law' 'corporate Insolvency' 'costs' 'interest'] ['unreasonable Director Related Transactions' 'orders Under S 588 FF of the Corporations Act 2001 (cth)' 'costs Follow the Event' 'calderbank Offer' 'pre Judgment Interest Under S 51 A(1) of the Federal Court of Australia Act 1976 (cth)']

Case Brief

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Procedural Posture

Commercial and Corporations; Corporations and Corporate Insolvency Proceeding Concerning Unreasonable Director Related Transactions / Determination of Final Orders, Interest and Costs Following Reasons Published in Smith V Starke, in the Matter of Action Paintball Games Pty Ltd (in Liq) (no 2) [2015] FCA 1119

Legal Issues

  1. 1 ["Whether the defendants should pay the plaintiffs' costs of the proceeding despite the plaintiffs succeeding on only part of the claim." "Whether the defendants' partial success in resisting many alleged unreasonable director-related transactions justified no order as to costs or a costs order in their favour." "Whether the plaintiffs' November 2014 settlement offer supported an order for costs in the plaintiffs' favour." 'Whether interest should be ordered under s 51A(1) of the Federal Court of Australia Act 1976 (Cth).']

Ratio Decidendi

The plaintiffs obtained judgment for a significant monetary sum, and the relevant event for costs purposes was the judgment in their favour. Although they recovered much less than claimed and the defendants successfully resisted many payment claims, the claims arose from the same matrix of facts, no additional hearing time was spent on individual payments, and the plaintiffs did not act unreasonably in claiming all payments during the relevant four-year period. There were no special circumstances justifying departure from the general rule that costs follow the event, and the plaintiffs' more favourable November 2014 offer further supported an order that the defendants pay the plaintiffs'...

Court Disposition

Judgment and final orders for the plaintiffs, including monetary relief, interest and costs.

Orders

  • ['Pursuant to section 588FF of the Corporations Act 2001 (Cth), the defendants pay the plaintiffs the amount of $178,521.58.' 'Pursuant to section 51A(1) of the Federal Court of Australia Act 1976 (Cth), the defendants pay the plaintiffs interest in the sum of $38,572.89, being interest for the period 20 September...