Kismet International Pty Ltd v Guano Fertilizer Sales Pty Ltd (No 3) [2014] FCA 1142

Kismet International Pty Ltd v Guano Fertilizer Sales Pty Ltd (No 3) [2014] FCA 1142

The interests of justice warrant acceding to the applicants' request for set-off of costs orders due to close quantum of parties' costs entitlements and to avoid risk of liquidation for the applicants. All costs orders arose from the same proceeding, and setting off is permissible regardless of claim and cross-claim distinctions.

Parties
First Applicant: Kismet International Pty Ltd; Second Applicant: Guano Australia Pty Ltd; First Respondent: Guano Fertilizer Sales Pty Ltd; Second Respondent: Grain Haul Pty Ltd; Third Respondent: The Trustee for the McMahon Family Trust; Fourth Respondent: James Alfred McMahon
Jurisdiction
Australia
Judgment Date
24 October 2014
Procedural Posture
Interlocutory Application / Post Judgment (variation of Costs Orders)
Outcome
application granted (orders as sought by applicants)
Legal Topics
Costs, Certificates of Taxation, Set Off of Costs, Offers of Compromise
Civil Procedure Costs Certificates of Taxation Set Off of Costs Offers of Compromise

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Parties

Kismet International Pty Ltd

First Applicant

Guano Australia Pty Ltd

Second Applicant

Guano Fertilizer Sales Pty Ltd

First Respondent

Grain Haul Pty Ltd

Second Respondent

The Trustee for the McMahon Family Trust

Third Respondent

James Alfred McMahon

Fourth Respondent

Procedural Posture

Interlocutory Application / Post Judgment (variation of Costs Orders)

Legal Issues

  1. 1 Whether costs payable by applicants to respondents should be set off against costs payable by respondents to applicants
  2. 2 Whether Certificate of Taxation should be issued for balance of costs only
  3. 3 Appropriate process for taxation and payment of costs

Ratio Decidendi

The interests of justice warrant acceding to the applicants' request for set-off of costs orders due to close quantum of parties' costs entitlements and to avoid risk of liquidation for the applicants. All costs orders arose from the same proceeding, and setting off is permissible regardless of claim and cross-claim distinctions.

Court Disposition

application granted (orders as sought by applicants)

Orders

  • Costs to be paid by the Applicants/Cross-Respondent to the Respondents/Cross-Claimant pursuant to the orders made on 19 July 2013 be set off against the costs to be paid by the Respondents to the Applicants pursuant to those orders.
  • Applicants must pursue taxation of their bill of costs with all speed.