ROHITS CIVIL & INFRASTRUCTURE LIMITED v CHINA CONSTRUCTION BANK (NEW ZEALAND) LIMITED [2018] NZHC 1194

ROHITS CIVIL & INFRASTRUCTURE LIMITED v CHINA CONSTRUCTION BANK (NEW ZEALAND) LIMITED [2018] NZHC 1194

Increased costs under r 14.6(3) were refused because the respondents advanced an arguable position that the bond was discharged by payment certified by the engineer and the settlement demand was not an offer under the Rules; CCB's failure to file submissions on time was non-compliance but did not justify increased costs given the substantive overlap and arguability of the respondents' position; costs were awarded to RCI in specified amounts with a 2A/2B approach to overlapping items and adjustments as detailed in the judgment.

Citation
[2018] NZHC 1194
Parties
Plaintiff / First Defendant: Rohits Civil & Infrastructure Limited; Defendant / Second Defendant: China Construction Bank (New Zealand) Limited; Plaintiff: Clark Road Developments Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
25 May 2018
Procedural Posture
Civil Summary Judgment and Injunction (construction Bond) / Costs Judgment (post Judgment)
Outcome
Increased costs refused; costs awarded to Rohits Civil & Infrastructure Limited against China Construction Bank (New Zealand) Limited and Clark Road Developments Limited in specified amounts.
Legal Topics
Performance Bond, Summary Judgment, Interim Injunction, Costs (high Court Rules R 14.6)
Contract Banking Construction Law Civil Procedure Performance Bond Summary Judgment Interim Injunction Costs (high Court Rules R 14.6)

Case Brief

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Parties

Rohits Civil & Infrastructure Limited

Plaintiff / First Defendant

China Construction Bank (New Zealand) Limited

Defendant / Second Defendant

Clark Road Developments Limited

Plaintiff

Procedural Posture

Civil Summary Judgment and Injunction (construction Bond) / Costs Judgment (post Judgment)

Legal Issues

  1. 1 Whether increased costs under High Court Rules r 14.6(3) were justified
  2. 2 Proper interpretation of 'Contract Price' in the construction contract and bond
  3. 3 Whether the bond was null and void due to alleged prior payment

Ratio Decidendi

Increased costs under r 14.6(3) were refused because the respondents advanced an arguable position that the bond was discharged by payment certified by the engineer and the settlement demand was not an offer under the Rules; CCB's failure to file submissions on time was non-compliance but did not justify increased costs given the substantive overlap and arguability of the respondents' position; costs were awarded to RCI in specified amounts with a 2A/2B approach to overlapping items and adjustments as detailed in the judgment.

Court Disposition

Increased costs refused; costs awarded to Rohits Civil & Infrastructure Limited against China Construction Bank (New Zealand) Limited and Clark Road Developments Limited in specified amounts.

Orders

  • Rohits Civil & Infrastructure Ltd is awarded costs against China Construction Bank (New Zealand) Ltd in CIV-2017-404-2519 in the sum of NZD 13,157.00.
  • Rohits Civil & Infrastructure Ltd is awarded costs against Clark Road Developments Ltd in CIV-2017-404-2558 in the sum of NZD 8,697.00.