EIGHT MILE STYLE, LLC v THE NZ NATIONAL PARTY & OR [2016] NZHC 741

EIGHT MILE STYLE, LLC v THE NZ NATIONAL PARTY & OR [2016] NZHC 741

Application for a split trial was dismissed. The defendants bore the onus and although liability and quantum are separable, three factors tipped the discretion against a split trial: (1) the plaintiffs' claim for additional damages under s121(2) reduced the prospects of settlement on quantum, (2) the pleaded defence...

Source-derived case information.

Citation
[2016] NZHC 741
Parties
First Plaintiff: EIGHT MILE STYLE, LLC; Second Plaintiff: MARTIN AFFILIATED, LLC; First Defendant: THE NEW ZEALAND NATIONAL PARTY; Second Defendant: ANOTHER; First Third Party: STAN 3 LIMITED; Second Third Party: SALE STREET STUDIOS LIMITED; Third Third Party: AMCOS NEW ZEALAND LIMITED; Fourth Third Party: AUSTRALASIAN MECHANICAL COPYRIGHT OWNERS SOCIETY LIMITED; Fifth Third Party: BEATBOX MUSIC PTY LIMITED; Fourth Party: LABRADOR ENTERTAINMENT INC; Fifth Party: MICHAEL ALAN COHEN
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 April 2016
Procedural Posture
Civil Copyright Infringement / Interlocutory Application for Split Trial on Liability and Quantum
Outcome
Defendants' application for a split trial dismissed; costs awarded to defendants at 50% of a 2B award; no costs to plaintiffs
Legal Topics
Split Trial, Damages, Additional Damages, Innocent Infringement, Inquiry as to Damages, Account of Profits, Costs
Copyright Intellectual Property Civil Procedure Split Trial Damages Additional Damages Innocent Infringement Inquiry as to Damages +2 more

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Summary, issues, holding and outcome

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Parties

EIGHT MILE STYLE, LLC

First Plaintiff

MARTIN AFFILIATED, LLC

Second Plaintiff

THE NEW ZEALAND NATIONAL PARTY

First Defendant

ANOTHER

Second Defendant

STAN 3 LIMITED

First Third Party

SALE STREET STUDIOS LIMITED

Second Third Party

AMCOS NEW ZEALAND LIMITED

Third Third Party

AUSTRALASIAN MECHANICAL COPYRIGHT OWNERS SOCIETY LIMITED

Fourth Third Party

BEATBOX MUSIC PTY LIMITED

Fifth Third Party

LABRADOR ENTERTAINMENT INC

Fourth Party

MICHAEL ALAN COHEN

Fifth Party

Procedural Posture

Civil Copyright Infringement / Interlocutory Application for Split Trial on Liability and Quantum

Legal Issues

  1. 1 Whether the Court should order a split trial separating liability and quantum
  2. 2 Whether an inquiry as to damages can be conducted contemporaneously with a liability trial
  3. 3 Whether amendment to pleadings (deleting inquiry and claiming damages) alters the appropriateness of a split trial

Ratio Decidendi

Application for a split trial was dismissed. The defendants bore the onus and although liability and quantum are separable, three factors tipped the discretion against a split trial: (1) the plaintiffs' claim for additional damages under s121(2) reduced the prospects of settlement on quantum, (2) the pleaded defence of innocent infringement under s121(1) meant quantum could not be reasonably deferred without undermining resolution, and (3) the multiplicity of third and fourth/fifth party downstream claims made separate hearings inefficient. The Court therefore refused the defendants' application and declined to award costs to the plaintiffs but awarded defendants 50% of a 2B costs award.

Court Disposition

Defendants' application for a split trial dismissed; costs awarded to defendants at 50% of a 2B award; no costs to plaintiffs

Orders

  • Defendants' application for a split trial on liability and quantum is dismissed
  • No costs are awarded to the plaintiffs