Jin Lian Group Pty Ltd (in liq) v ACapital Finance Pty Ltd (No 2) [2021] NSWSC 1202

Jin Lian Group Pty Ltd (in liq) v ACapital Finance Pty Ltd (No 2) [2021] NSWSC 1202

It was not unreasonable for Jin Lian to reject the first offer because the claim was substantial, complex and supported by senior counsel's advice, so the Court ordered otherwise and refused indemnity costs from that offer. The second offer was not accepted and Jin Lian accepted that indemnity costs were payable...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
22 September 2021
Procedural Posture
Costs Application in Equity Commercial List Proceedings / Post Judgment Costs Determination on the Papers After Dismissal of the Proceedings
Outcome
Plaintiff and funder to pay first defendant's costs on ordinary basis until 7 April 2021 and on an indemnity basis thereafter. Funds paid into Court as security for costs to be paid out to defendants.
Legal Topics
['indemnity Costs' 'offers of Compromise' 'reasonableness of Rejecting an Offer' 'non Party Costs Orders' 'litigation Funder Liability for Costs' 'security for Costs' 'release of Funds Paid Into Court']
['civil Procedure' 'costs' 'commercial Litigation' 'litigation Funding'] ['indemnity Costs' 'offers of Compromise' 'reasonableness of Rejecting an Offer' 'non Party Costs Orders' 'litigation Funder Liability for Costs' 'security for Costs' 'release of Funds Paid Into Court']

Source-derived case record

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Procedural Posture

Costs Application in Equity Commercial List Proceedings / Post Judgment Costs Determination on the Papers After Dismissal of the Proceedings

Legal Issues

  1. 1 ['Whether ACapital should have its costs on an indemnity basis from 17 January 2020 or 8 April 2021 by reason of offers of compromise served on 16 January 2020 and 7 April 2021 respectively.' 'Whether ACapital should have a costs order against Premier Litigation Funding Pty Ltd as funder of the litigation.' "Whether the $149,271.65 paid into Court on behalf of Jin Lian as security for ACapital's costs should be paid out to ACapital pending assessment of its costs."]

Ratio Decidendi

It was not unreasonable for Jin Lian to reject the first offer because the claim was substantial, complex and supported by senior counsel's advice, so the Court ordered otherwise and refused indemnity costs from that offer. The second offer was not accepted and Jin Lian accepted that indemnity costs were payable from 8 April 2021. The Funder was jointly and severally liable for ACapital's costs from 6 August 2020 because its provision of funding for security for costs was the decisive factor allowing the proceedings to continue to trial, it acted for commercial gain, had rights to information and settlement involvement, indemnified adverse costs up to a limit, and supported rejection of...

Court Disposition

Plaintiff and funder to pay first defendant's costs on ordinary basis until 7 April 2021 and on an indemnity basis thereafter. Funds paid into Court as security for costs to be paid out to defendants.

Orders

  • ["Jin Lian is to pay ACapital's costs on the ordinary basis to 7 April 2021 and on an indemnity basis thereafter." "Premier Litigation Funding Pty Ltd is jointly and severally liable for ACapital's costs from and including 6 August 2020, including indemnity costs from 8 April 2021." "Jin Lian is to pay ACIM's costs...