Beach Petroleum NL & Anor v Johnson, M.K. & Ors [1995] FCA 350

Beach Petroleum NL & Anor v Johnson, M.K. & Ors [1995] FCA 350

Because the principal proceedings were large and complex, completing and contesting taxation would involve unreasonable time, expense and use of court resources. The Court could and should fix gross sums under O 62, r 4(2), but with broad discounts to account for identified errors, excessive or non-allowable items, and risks in estimation. Indemnity costs payable by Enterprise and Jingellic were fixed at $8,119,370, and party and party costs payable by Spargos were fixed at $5,683,559.

Jurisdiction
Australia
Judgment Date
19 May 1995
Procedural Posture
Application for Gross Sum Costs Orders in Lieu of Taxation / After Judgment and After Costs Orders Made on 16 June 1993
Outcome
Application granted in part; costs fixed as gross sums with discounts from the amounts claimed.
Legal Topics
['gross Sum Costs in Lieu of Taxation' 'indemnity Costs' 'party and Party Costs' 'federal Court Rules O 62 R 4(2)']

Case Brief

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Procedural Posture

Application for Gross Sum Costs Orders in Lieu of Taxation / After Judgment and After Costs Orders Made on 16 June 1993

  1. 1 ['Whether the Court should order that costs payable by Enterprise Gold Mines NL, Jingellic Minerals NL and Spargos Mining NL be assessed as gross sums instead of by taxation.' 'What gross sums should be fixed for indemnity costs against Enterprise Gold Mines NL and Jingellic Minerals NL and party and party costs against Spargos Mining NL.']

Ratio Decidendi

Because the principal proceedings were large and complex, completing and contesting taxation would involve unreasonable time, expense and use of court resources. The Court could and should fix gross sums under O 62, r 4(2), but with broad discounts to account for identified errors, excessive or non-allowable items, and risks in estimation. Indemnity costs payable by Enterprise and Jingellic were fixed at $8,119,370, and party and party costs payable by Spargos were fixed at $5,683,559.

Court Disposition

Application granted in part; costs fixed as gross sums with discounts from the amounts claimed.

Orders

  • ['The costs payable by the respondents Enterprise Gold Mines NL and Jingellic Minerals NL pursuant to the order made on 16 June 1993 be assessed as a gross sum pursuant to O 62, r 4(2) of the Federal Court Rules in the sum of $8,119,370.' 'The costs payable by the respondent Spargos Mining NL pursuant to the order...