PRC Capital Pty Ltd v The Trust Company Ltd [2021] NSWSC 1007

PRC Capital Pty Ltd v The Trust Company Ltd [2021] NSWSC 1007

The application by PRC Capital for costs of the summons for preliminary discovery is dismissed because the conduct of the prospective defendants was not unreasonable and did not warrant a departure from the usual rule that there be no order as to costs where proceedings are resolved without a hearing on the merits. The court found that both sides contributed to the complexity and expense, but no exceptional circumstances justified a costs order against the defendants. The plaintiff is ordered to pay the prospective defendants' costs of the costs application itself, as PRC Capital unreasonably pressed its unsuccessful costs claim despite prior notice from the defendants and produced a...

Parties
Plaintiff: PRC Capital Pty Ltd; First Defendant: The Trust Company Ltd ACN 004 027 749 as custodian for Stockland Trust Management Ltd atf the Stockland Kemps Creek Industrial Trust; Second Defendant: Stockland Trust Management Ltd atf the Stockland Kemps Creek Industrial Trust; Third Defendant: Stockland Development Pty Ltd
Jurisdiction
Australia
Judgment Date
12 August 2021
Procedural Posture
Application for Preliminary Discovery / Decision on Costs After Resolution Without Hearing on the Merits
Outcome
Application by plaintiff for costs of summons dismissed; plaintiff to pay prospective defendants' costs of the costs application.
Legal Topics
Costs, Preliminary Discovery, Party/party Costs, Consent Order
Equity Costs Preliminary Discovery Party/party Costs Consent Order

Case Brief

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Parties

PRC Capital Pty Ltd

Plaintiff

The Trust Company Ltd ACN 004 027 749 as custodian for Stockland Trust Management Ltd atf the Stockland Kemps Creek Industrial Trust

First Defendant

Stockland Trust Management Ltd atf the Stockland Kemps Creek Industrial Trust

Second Defendant

Stockland Development Pty Ltd

Third Defendant

Procedural Posture

Application for Preliminary Discovery / Decision on Costs After Resolution Without Hearing on the Merits

Legal Issues

  1. 1 Whether costs should be ordered following resolution of an application for preliminary discovery without a hearing on the merits.
  2. 2 Whether the conduct of the parties (particularly the defendants) was unreasonable so as to warrant a departure from the usual order as to costs.
  3. 3 Whether the plaintiff should pay the costs of the subsequent costs application.

Ratio Decidendi

The application by PRC Capital for costs of the summons for preliminary discovery is dismissed because the conduct of the prospective defendants was not unreasonable and did not warrant a departure from the usual rule that there be no order as to costs where proceedings are resolved without a hearing on the merits. The court found that both sides contributed to the complexity and expense, but no exceptional circumstances justified a costs order against the defendants. The plaintiff is ordered to pay the prospective defendants' costs of the costs application itself, as PRC Capital unreasonably pressed its unsuccessful costs claim despite prior notice from the defendants and produced a...

Court Disposition

Application by plaintiff for costs of summons dismissed; plaintiff to pay prospective defendants' costs of the costs application.

Orders

  • No order as to costs of the summons for preliminary discovery.
  • Plaintiff to pay the prospective defendants' costs of the costs application.