EIFY Systems Pty Ltd v 3D Safety Services Pty Ltd (No. 2) [2018] NSWSC 339

EIFY Systems Pty Ltd v 3D Safety Services Pty Ltd (No. 2) [2018] NSWSC 339

The plaintiff should pay the defendants' costs in full, not limited to a proportion, due to its inefficient and disorganised conduct of the litigation, which protracted and increased its expense. The costs are to be assessed in a gross sum of $1.2 million given the expense and likely delay of a regular costs assessment. There is insufficient reason to pierce the corporate veil to make the plaintiff's principal personally liable for costs.

Jurisdiction
Australia
Judgment Date
16 March 2018
Procedural Posture
Costs Application (post Trial in Equity Proceedings) / Costs / Post Judgment
Outcome
Plaintiff ordered to pay defendants' costs; costs fixed in gross sum; third-party costs order refused.
Legal Topics
['costs Follow the Event' 'gross Sum Costs Order' 'indemnity Costs' 'third Party Costs Order' 'corporate Veil']
['civil Procedure' 'costs' 'equity'] ['costs Follow the Event' 'gross Sum Costs Order' 'indemnity Costs' 'third Party Costs Order' 'corporate Veil']

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Procedural Posture

Costs Application (post Trial in Equity Proceedings) / Costs / Post Judgment

Legal Issues

  1. 1 ['Whether costs should follow the event in full or in part' 'Whether costs should be assessed on an indemnity basis or by gross sum order' 'Whether costs should be ordered against a non-party (principal of corporate plaintiff)']

Ratio Decidendi

The plaintiff should pay the defendants' costs in full, not limited to a proportion, due to its inefficient and disorganised conduct of the litigation, which protracted and increased its expense. The costs are to be assessed in a gross sum of $1.2 million given the expense and likely delay of a regular costs assessment. There is insufficient reason to pierce the corporate veil to make the plaintiff's principal personally liable for costs.

Court Disposition

Plaintiff ordered to pay defendants' costs; costs fixed in gross sum; third-party costs order refused.

Orders

  • ["Order plaintiff to pay defendants' costs of proceedings." 'Order those costs be assessed in gross sum of $1,200,000.' 'Order costs in relation to costs applications be costs in the cause.']