PM Works Pty Ltd v Management Services Australia Pty Ltd trading as Peak Performance PM [2018] NSWCA 168

PM Works Pty Ltd v Management Services Australia Pty Ltd trading as Peak Performance PM [2018] NSWCA 168

A non-party costs order is not justified merely because a director is the sole shareholder, funds the litigation, and stands to benefit from it; without objective unreasonableness or further exceptional circumstances, the order should not be made. The primary judge did not err in refusing the order.

Source-derived case information.

Jurisdiction
Australia
Judgment Date
03 August 2018
Procedural Posture
Appeal / Judgment on Application for Leave to Appeal and Appeal
Outcome
Appeal dismissed with costs
Legal Topics
['non Party Costs Orders' 'corporate Veil' 'discretion of Court on Costs' 'exceptional Circumstances in Awarding Costs']
['civil Procedure' 'costs'] ['non Party Costs Orders' 'corporate Veil' 'discretion of Court on Costs' 'exceptional Circumstances in Awarding Costs']

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Appeal / Judgment on Application for Leave to Appeal and Appeal

Legal Issues

  1. 1 ['Whether a non-party costs order should be made against the sole director and shareholder of the unsuccessful plaintiff company' 'Whether unreasonableness or exceptional circumstances must be shown to make a non-party costs order against a non-party director']

Ratio Decidendi

A non-party costs order is not justified merely because a director is the sole shareholder, funds the litigation, and stands to benefit from it; without objective unreasonableness or further exceptional circumstances, the order should not be made. The primary judge did not err in refusing the order.

Court Disposition

Appeal dismissed with costs

Orders

  • ['To the extent that leave be necessary, grant leave to appeal.' 'Direct the applicants to file a notice of appeal in the terms of the draft notice of appeal in the White Book, and otherwise dispense with the requirements of service.' 'Appeal dismissed with costs.']