Black & Decker Inc v GMCA Pty Ltd (No 4) [2008] FCA 1737

Black & Decker Inc v GMCA Pty Ltd (No 4) [2008] FCA 1737

Given the urgency arising from GMCA’s financial position and the implications of recent charges, as well as the need to finalise a judgment sum swiftly to preserve rights under the Corporations Act, a gross sum assessment of costs is appropriate. The broad discretion for such orders, interest of expedition, avoidance of delay and expense, and practical inability to tax costs in the time allowed all justify the order.

Parties
First Applicant: BLACK & DECKER INC; Second Applicant: BLACK & DECKER (AUSTRALIA) PTY LTD; Respondent: GMCA PTY LTD
Jurisdiction
Australia
Judgment Date
14 November 2008
Procedural Posture
Costs Application in Civil Proceedings (after Judgment on Liability and Quantum) / Post Judgment, Costs Order and Directions for Assessment
Outcome
Gross sum costs order and appointment of court expert for assessment.
Legal Topics
Gross Sum Costs, Cost Assessment, Corporations Act Voidable Transactions, Expedition in Cost Determination
Civil Procedure Corporate Insolvency Costs Gross Sum Costs Cost Assessment Corporations Act Voidable Transactions Expedition in Cost Determination

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Parties

BLACK & DECKER INC

First Applicant

BLACK & DECKER (AUSTRALIA) PTY LTD

Second Applicant

GMCA PTY LTD

Respondent

Procedural Posture

Costs Application in Civil Proceedings (after Judgment on Liability and Quantum) / Post Judgment, Costs Order and Directions for Assessment

Legal Issues

  1. 1 Whether a gross sum costs order should be made under O 62 r 4(2)(c) and (d) of the Federal Court Rules
  2. 2 Whether the financial circumstances and transactions of GMCA justify expedition of costs assessment
  3. 3 Appropriateness of appointing a court expert for gross sum assessment

Ratio Decidendi

Given the urgency arising from GMCA’s financial position and the implications of recent charges, as well as the need to finalise a judgment sum swiftly to preserve rights under the Corporations Act, a gross sum assessment of costs is appropriate. The broad discretion for such orders, interest of expedition, avoidance of delay and expense, and practical inability to tax costs in the time allowed all justify the order.

Court Disposition

Gross sum costs order and appointment of court expert for assessment.

Orders

  • There shall be a gross sum assessment of the Applicants' costs under Order 62 Rule 4(2)(c) and (d) of the Federal Court Rules.
  • Ms Meg Gourlay is appointed as court expert under Order 34 to assess the gross sum of costs.