BODY CORPORATE NO. 209549 AND ANOR V AKITA CONSTRUCTION LIMITED AND ORS HC AK CIV-2005-404-3080

BODY CORPORATE NO. 209549 AND ANOR V AKITA CONSTRUCTION LIMITED AND ORS HC AK CIV-2005-404-3080

Because the plaintiff's conduct in refusing to provide financial information, failing to comply with directions and causing unnecessary litigation steps justified penalising conduct but did not reach the truly exceptional threshold for indemnity, the Court ordered a 50% uplift on 2B costs in favour of specified...

Source-derived case information.

Citation
openlaw-28b4b775_6180_406f_8ecd_c5d157553f14.pdf
Parties
First Plaintiff: BODY CORPORATE NO. 209549; Second Plaintiff(s): SEALITE INVESTMENTS LIMITED & ORS; First Defendant: AKITA CONSTRUCTION LIMITED; Second Defendant: CORNERSTONE GROUP LIMITED; Third Defendant: GEORGE CLARKE; Fourth Defendant: COMPASS BUILDING CERTIFICATION LIMITED; Fifth Defendant: PLASTER SYSTEMS LIMITED; Sixth Defendant: NU-WAY PLASTERERS LIMITED; Seventh Defendant: RAYMARK WATERPROOFING LIMITED; Eighth Defendant: MSC CONSULTING LIMITED; Ninth Defendant: QBE INSURANCE (INTERNATIONAL) LIMITED; Tenth Defendant: CORNERSTONE OYSTER COVE LIMITED
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 January 2008
Procedural Posture
Civil — Security for Costs and Costs Applications / Hearing on Applications for Increased Costs and Security for Costs Following Interlocutory Security Orders
Outcome
Applications for increased costs granted on an increased (50% uplift on 2B) basis for specified defendants; indemnity costs declined; security for costs of $70,000 ordered for eighth defendant; no costs order for seventh defendant.
Legal Topics
Security for Costs, Increased Costs Orders, Indemnity Costs, Court Rules Breach, Costs Uplift
Civil Procedure Costs Security for Costs Increased Costs Orders Indemnity Costs Court Rules Breach Costs Uplift

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Parties

BODY CORPORATE NO. 209549

First Plaintiff

SEALITE INVESTMENTS LIMITED & ORS

Second Plaintiff(s)

AKITA CONSTRUCTION LIMITED

First Defendant

CORNERSTONE GROUP LIMITED

Second Defendant

GEORGE CLARKE

Third Defendant

COMPASS BUILDING CERTIFICATION LIMITED

Fourth Defendant

PLASTER SYSTEMS LIMITED

Fifth Defendant

NU-WAY PLASTERERS LIMITED

Sixth Defendant

RAYMARK WATERPROOFING LIMITED

Seventh Defendant

MSC CONSULTING LIMITED

Eighth Defendant

QBE INSURANCE (INTERNATIONAL) LIMITED

Ninth Defendant

CORNERSTONE OYSTER COVE LIMITED

Tenth Defendant

Procedural Posture

Civil — Security for Costs and Costs Applications / Hearing on Applications for Increased Costs and Security for Costs Following Interlocutory Security Orders

Legal Issues

  1. 1 Whether defendants are entitled to increased costs for the security for costs applications
  2. 2 Whether indemnity costs are warranted given the plaintiff's conduct
  3. 3 Whether security for costs should be granted to the eighth defendant and in what amount

Ratio Decidendi

Because the plaintiff's conduct in refusing to provide financial information, failing to comply with directions and causing unnecessary litigation steps justified penalising conduct but did not reach the truly exceptional threshold for indemnity, the Court ordered a 50% uplift on 2B costs in favour of specified defendants and granted security for costs of $70,000 to the eighth defendant; GST not recoverable and no order for a defendant who did not participate sufficiently.

Court Disposition

Applications for increased costs granted on an increased (50% uplift on 2B) basis for specified defendants; indemnity costs declined; security for costs of $70,000 ordered for eighth defendant; no costs order for seventh defendant.

Orders

  • Second and Tenth defendants awarded increased costs: 50% uplift on 2B costs amounting to $10,980
  • Third defendant awarded increased costs: 50% uplift on 2B costs