JENHASH CONTRACTING & CONSULTANTS LTD v ECO-SMART HOMES NORTHWEST LTD [2023] NZHC 1580

JENHASH CONTRACTING & CONSULTANTS LTD v ECO-SMART HOMES NORTHWEST LTD [2023] NZHC 1580

Indemnity costs were not justified because the applicant's conduct, while amounting to failure to comply with directions and non‑appearance causing unnecessary steps, did not reach the threshold of flagrant or very bad conduct required for indemnity costs; increased costs were appropriate and a 50% uplift on 2B...

Source-derived case information.

Citation
[2023] NZHC 1580
Parties
Plaintiff/applicant: Jenhash Contracting and Consultants Limited; Defendant/respondent: Eco-Smart Homes Northwest Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 June 2023
Procedural Posture
Companies Act 1993 Statutory Demand Set Aside Application / Costs Determination After Strike Out of Application
Outcome
Costs awarded in favour of Eco-Smart Homes Northwest Limited; application to set aside remains struck out; costs awarded on 2B basis with 50% uplift.
Legal Topics
Statutory Demand, Set Aside Application, Indemnity Costs, Increased Costs, Without Prejudice Offers, Discontinuance
Company Law Civil Procedure Costs Statutory Demand Set Aside Application Indemnity Costs Increased Costs Without Prejudice Offers +1 more

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Parties

Jenhash Contracting and Consultants Limited

Plaintiff/applicant

Eco-Smart Homes Northwest Limited

Defendant/respondent

Procedural Posture

Companies Act 1993 Statutory Demand Set Aside Application / Costs Determination After Strike Out of Application

Legal Issues

  1. 1 Whether indemnity costs should be awarded for failure to comply with directions and non‑appearance
  2. 2 Whether without prejudice save as to costs settlement correspondence could be relied on
  3. 3 Proper calculation of 2B costs and appropriate uplift

Ratio Decidendi

Indemnity costs were not justified because the applicant's conduct, while amounting to failure to comply with directions and non‑appearance causing unnecessary steps, did not reach the threshold of flagrant or very bad conduct required for indemnity costs; increased costs were appropriate and a 50% uplift on 2B costs was awarded, giving $18,104.25 plus disbursements to be fixed by the Registrar; without prejudice offers could not be meaningfully compared given the strike out.

Court Disposition

Costs awarded in favour of Eco-Smart Homes Northwest Limited; application to set aside remains struck out; costs awarded on 2B basis with 50% uplift.

Orders

  • Jenhash Contracting and Consultants Limited is to pay costs to Eco-Smart Homes Northwest Limited on a 2B basis with a 50% uplift in the amount of $18,104.25
  • Disbursements to be fixed by the Registrar