Habrok (Dalgaranga) Pty Ltd v Gascoyne Resources Pty Ltd (No 2) [2021] FCA 72

Habrok (Dalgaranga) Pty Ltd v Gascoyne Resources Pty Ltd (No 2) [2021] FCA 72

Indemnity costs are not appropriate as the rejection of the settlement offer was not unreasonable given only modest compromise, success on some arguments, complexity and accelerated timeline; however, Habrok Mining Pty Ltd and Adaman Resources Pty Ltd are liable for costs as non-parties due to their active involvement, direct interest, and the plaintiff being a special purpose vehicle with no substantial assets.

Jurisdiction
Australia
Judgment Date
05 February 2021
Procedural Posture
Commercial and Corporations Corporations and Corporate Insolvency / Post Trial, Determination of Costs
Outcome
Defendants' application for indemnity costs refused. Costs awarded against plaintiff and non-parties (Habrok Mining Pty Ltd and Adaman Resources Pty Ltd).
Legal Topics
['non Party Costs Orders' 'indemnity Costs' 'corporate Veil' 'litigation Funding' 'special Purpose Vehicle']
['corporations' 'corporate Insolvency' 'costs'] ['non Party Costs Orders' 'indemnity Costs' 'corporate Veil' 'litigation Funding' 'special Purpose Vehicle']

Case Brief

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Procedural Posture

Commercial and Corporations Corporations and Corporate Insolvency / Post Trial, Determination of Costs

Legal Issues

  1. 1 ['Whether indemnity costs should be ordered against the plaintiff' 'Whether costs orders should be made against non-parties (Habrok Mining Pty Ltd and Adaman Resources Pty Ltd)']

Ratio Decidendi

Indemnity costs are not appropriate as the rejection of the settlement offer was not unreasonable given only modest compromise, success on some arguments, complexity and accelerated timeline; however, Habrok Mining Pty Ltd and Adaman Resources Pty Ltd are liable for costs as non-parties due to their active involvement, direct interest, and the plaintiff being a special purpose vehicle with no substantial assets.

Court Disposition

Defendants' application for indemnity costs refused. Costs awarded against plaintiff and non-parties (Habrok Mining Pty Ltd and Adaman Resources Pty Ltd).

Orders

  • ["Defendants' application for indemnity costs refused." "Habrok Mining Pty Ltd and Adaman Resources Pty Ltd, in addition to the plaintiff, to pay defendants' costs of and incidental to the proceeding, to be taxed in default of agreement." 'On taxation, defendants allowed costs of four counsel, including one senior...