Zircon Australia Pty Ltd v BCC Trade Credit Pty Ltd trading as Bond and Credit Co [2023] FCA 636

Zircon Australia Pty Ltd v BCC Trade Credit Pty Ltd trading as Bond and Credit Co [2023] FCA 636

There was insufficient reason to depart from the ordinary course that an amending party pay costs thrown away. BCC and Tokio Marine acted reasonably and sensibly in consenting to the amendments after engagement with Zircon, thereby avoiding the cost of a pleadings dispute. Zircon's submissions that the amendments were minor or cumulative might affect the quantum of costs thrown away, but did not provide a principled reason why costs thrown away should not be ordered.

Jurisdiction
Australia
Judgment Date
09 June 2023
Procedural Posture
Commercial and Corporations Proceeding Concerning a Claim by Insureds for Indemnity Pursuant to a Trade Credit Insurance Policy / Determined on the Papers; Reasons for Order on Costs Thrown Away by Amendments to the Amended Originating Application
Outcome
The applicants were ordered to pay the first and second respondents' costs thrown away, if any, by the amendments to the amended originating application, in an amount as agreed or taxed.
Legal Topics
['costs Thrown Away' 'amendments to Pleadings' 'costs Discretion' 'trade Credit Insurance Indemnity']
['costs' 'civil Procedure' 'insurance' 'commercial Contracts'] ['costs Thrown Away' 'amendments to Pleadings' 'costs Discretion' 'trade Credit Insurance Indemnity']

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Procedural Posture

Commercial and Corporations Proceeding Concerning a Claim by Insureds for Indemnity Pursuant to a Trade Credit Insurance Policy / Determined on the Papers; Reasons for Order on Costs Thrown Away by Amendments to the Amended Originating Application

Legal Issues

  1. 1 ["Whether the applicants should pay the first and second respondents' costs thrown away by the amendments to the amended originating application as reflected in the further amended originating application." 'Whether the fact that the amendments were resolved by consent, without a determination on the merits, justified no order as to costs.' 'Whether there was sufficient reason to depart from the usual course that an amending party pay costs thrown away by reason of amendments to pleadings.']

Ratio Decidendi

There was insufficient reason to depart from the ordinary course that an amending party pay costs thrown away. BCC and Tokio Marine acted reasonably and sensibly in consenting to the amendments after engagement with Zircon, thereby avoiding the cost of a pleadings dispute. Zircon's submissions that the amendments were minor or cumulative might affect the quantum of costs thrown away, but did not provide a principled reason why costs thrown away should not be ordered.

Court Disposition

The applicants were ordered to pay the first and second respondents' costs thrown away, if any, by the amendments to the amended originating application, in an amount as agreed or taxed.

Orders

  • ['The applicants pay the costs of the first and second respondents thrown away, if any, by the amendments to the amended originating application as reflected in the further amended originating application, in an amount as agreed or taxed.' 'Any party seeking reasons for order 1 do so by making a request by email to...