Redman v JGS Investment Holdings Pty Ltd & Ors Redman v Arraj & Anor [2012] NSWSC 1575

Redman v JGS Investment Holdings Pty Ltd & Ors Redman v Arraj & Anor [2012] NSWSC 1575

Majority directors, though not formal parties, were heard as opponents to the joinder motion and their opposition alone made the motion contested. Courts may order costs against non-parties where they actively participate in opposition with an interest in the subject matter. Accordingly, majority directors should pay the costs of the joinder motion. In relation to the motion to have proceedings heard together, because outcomes reflected a consensus and no party was wholly successful or unsuccessful, costs should be costs in the cause.

Jurisdiction
Australia
Judgment Date
10 December 2012
Procedural Posture
Civil (equity Division Corporations List) / Costs Orders Following Joinder Motion and Motion to Consolidate/hear Together Proceedings
Outcome
Costs orders made against Simon Arraj and Joe Arraj for the joinder motion; costs of the motion to have proceedings heard together to be costs in the cause. Other procedural orders for joinder and sequencing of proceedings.
Legal Topics
['joinder of Parties' 'costs — Non Party Costs Orders' 'hearing of Related Proceedings Together']
['civil Procedure' 'corporations Law'] ['joinder of Parties' 'costs — Non Party Costs Orders' 'hearing of Related Proceedings Together']

Case Brief

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Procedural Posture

Civil (equity Division Corporations List) / Costs Orders Following Joinder Motion and Motion to Consolidate/hear Together Proceedings

Legal Issues

  1. 1 ['Whether majority directors, as non-parties who appeared and opposed joinder motion, should pay costs of the motion' 'Whether costs of motion to have proceedings heard together should follow the event or be costs in the cause']

Ratio Decidendi

Majority directors, though not formal parties, were heard as opponents to the joinder motion and their opposition alone made the motion contested. Courts may order costs against non-parties where they actively participate in opposition with an interest in the subject matter. Accordingly, majority directors should pay the costs of the joinder motion. In relation to the motion to have proceedings heard together, because outcomes reflected a consensus and no party was wholly successful or unsuccessful, costs should be costs in the cause.

Court Disposition

Costs orders made against Simon Arraj and Joe Arraj for the joinder motion; costs of the motion to have proceedings heard together to be costs in the cause. Other procedural orders for joinder and sequencing of proceedings.

Orders

  • ['Grant leave to join JGS Investment Holdings Pty Ltd as third defendant.' 'Order JGS Investment Holdings Pty Ltd be added as third defendant in 2012/246076.' 'Direct JGS to file and serve Points of Defence by 7 December 2012.' 'Proceedings to stand over for directions on 13 December 2012.' 'Simon Arraj and Joe...