Mr Rental Australia Pty Ltd v IRD Services Pty Ltd (No 2) [2016] NSWSC 918

Mr Rental Australia Pty Ltd v IRD Services Pty Ltd (No 2) [2016] NSWSC 918

Clause 28.1(b) of the franchise agreement only entitles the plaintiff to 'reasonable costs and expenses' (the ordinary basis), not indemnity costs, since the obligation is limited to reasonable costs and does not plainly and unambiguously require indemnity costs. As such, the Court exercises its discretion to order costs on the ordinary basis.

Parties
Plaintiff: Mr Rental Australia Pty Ltd; First Defendant: IRD Services Pty Ltd; Second Defendant: J&D Business Solutions Pty Ltd; Third Defendant: Alwitem Pty Ltd; Fourth Defendant: Glenn David Travers and Sandra Travers; Fifth Defendant: Andsmit Pty Ltd; Seventh Defendant: Ian Dobbie; Eighth Defendant: Jeffrey Wood; Ninth Defendant: Debra Siozos; Tenth Defendant: Ross Grimm; Eleventh Defendant: Joy Grimm; Twelfth Defendant: Peter Raymond Thomas; Thirteenth Defendant: Sharon Leanne Thomas
Jurisdiction
Australia
Judgment Date
04 July 2016
Procedural Posture
Civil / Post Judgment Costs Determination
Outcome
Each of the first, third, fourth, seventh, tenth and eleventh defendants to pay the plaintiff's costs on an ordinary basis.
Legal Topics
Costs, Civil Procedure, Franchising, Contract
Equity Costs Civil Procedure Franchising Contract

Case Brief

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Parties

Mr Rental Australia Pty Ltd

Plaintiff

IRD Services Pty Ltd

First Defendant

J&D Business Solutions Pty Ltd

Second Defendant

Alwitem Pty Ltd

Third Defendant

Glenn David Travers and Sandra Travers

Fourth Defendant

Andsmit Pty Ltd

Fifth Defendant

Ian Dobbie

Seventh Defendant

Jeffrey Wood

Eighth Defendant

Debra Siozos

Ninth Defendant

Ross Grimm

Tenth Defendant

Joy Grimm

Eleventh Defendant

Peter Raymond Thomas

Twelfth Defendant

Sharon Leanne Thomas

Thirteenth Defendant

Procedural Posture

Civil / Post Judgment Costs Determination

Legal Issues

  1. 1 Whether the plaintiff should be awarded indemnity costs or ordinary costs against certain defendants.
  2. 2 Whether clause 28.1(b) of the franchise agreement entitles the plaintiff to indemnity costs.
  3. 3 Whether discretionary considerations justify indemnity costs.

Ratio Decidendi

Clause 28.1(b) of the franchise agreement only entitles the plaintiff to 'reasonable costs and expenses' (the ordinary basis), not indemnity costs, since the obligation is limited to reasonable costs and does not plainly and unambiguously require indemnity costs. As such, the Court exercises its discretion to order costs on the ordinary basis.

Court Disposition

Each of the first, third, fourth, seventh, tenth and eleventh defendants to pay the plaintiff's costs on an ordinary basis.

Orders

  • Each of the first, third, fourth, seventh, tenth and eleventh defendants pay the plaintiff's costs on an ordinary basis.