CLODE v SULLIVAN [2016] NZHC 551

CLODE v SULLIVAN [2016] NZHC 551

The court applied r 7.77(8) to hold that the party filing the amended pleading bears the costs occasioned by the original pleading and assessed quantum by reference to the High Court Rules scale and the parties' relative success: awarded Plaintiffs $6,521 for further discovery; ordered Plaintiffs to pay Defendants $6,000 for the security application (reduced from claimed amount); held Defendants entitled to $4,090 for costs occasioned by their original pleading; ordered Defendants to pay Plaintiffs wasted costs for the reply caused by a retracted admission; and directed set-off of the competing costs awards under r 14.17.

Citation
[2016] NZHC 551
Parties
First Plaintiff: Brent Douglas Clode; Second Plaintiff: Synergy Management Limited; First Defendant: Michael Grant Sullivan; First Defendant: Duthco Trustees (Sullivan) Limited as trustees of The Sullivan Family Trust No 1; Second Defendant: David Robert Jans; Third Defendant: Thompson Park Trust Limited as trustee of The Thompson Park Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
4 April 2016
Procedural Posture
Civil (contractual Remedies and Breach of Contract) / Costs Determination on Competing Applications (on the Papers)
Outcome
Court made multiple costs orders: awarded plaintiffs costs for further discovery; awarded defendants costs for security application and for costs occasioned by their original pleading; ordered defendants to pay plaintiffs wasted costs caused by a retracted admission; directed set-off of competing costs and required...
Legal Topics
Security for Costs, Further Discovery, Wasted Costs, Amended Pleadings, Set Off
Civil Procedure Costs Contract Law Security for Costs Further Discovery Wasted Costs Amended Pleadings Set Off

Case Brief

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Parties

Brent Douglas Clode

First Plaintiff

Synergy Management Limited

Second Plaintiff

Michael Grant Sullivan

First Defendant

Duthco Trustees (Sullivan) Limited as trustees of The Sullivan Family Trust No 1

First Defendant

David Robert Jans

Second Defendant

Thompson Park Trust Limited as trustee of The Thompson Park Trust

Third Defendant

Procedural Posture

Civil (contractual Remedies and Breach of Contract) / Costs Determination on Competing Applications (on the Papers)

Legal Issues

  1. 1 Entitlement and quantum of costs for further discovery application
  2. 2 Entitlement and quantum of costs for application for security for costs
  3. 3 Application of High Court Rules r 7.77(8) to costs occasioned by amended pleadings

Ratio Decidendi

The court applied r 7.77(8) to hold that the party filing the amended pleading bears the costs occasioned by the original pleading and assessed quantum by reference to the High Court Rules scale and the parties' relative success: awarded Plaintiffs $6,521 for further discovery; ordered Plaintiffs to pay Defendants $6,000 for the security application (reduced from claimed amount); held Defendants entitled to $4,090 for costs occasioned by their original pleading; ordered Defendants to pay Plaintiffs wasted costs for the reply caused by a retracted admission; and directed set-off of the competing costs awards under r 14.17.

Court Disposition

Court made multiple costs orders: awarded plaintiffs costs for further discovery; awarded defendants costs for security application and for costs occasioned by their original pleading; ordered defendants to pay plaintiffs wasted costs caused by a retracted admission; directed set-off of competing costs and required...

Orders

  • Plaintiffs awarded costs of $6,521 from the Defendants for the plaintiffs' further discovery application
  • Plaintiffs ordered to pay the Defendants $6,000 for the Defendants' application for security for costs