JEFFREYS & ANOR v MORGENSTERN & ANOR [2013] NZHC 1361

JEFFREYS & ANOR v MORGENSTERN & ANOR [2013] NZHC 1361

Because the defendants breached discovery obligations by disclosing material documents late which justified leave but required vacating the fixture, the Court fixed costs now in favour of the plaintiffs, awarded wasted costs for trial-focused solicitor work at 50% and 50% of the lower expert fee estimates, and...

Source-derived case information.

Citation
[2013] NZHC 1361
Parties
Plaintiff: STEPHANIE BETH JEFFREYS; Plaintiff: TIMOTHY WILSON DOWNES; First Defendant: ARTHUR SYLVAN MORGENSTERN; Second Defendant: TANYA MAY LAVAS
Court
High Court
Jurisdiction
New Zealand
Judgment Date
10 June 2013
Procedural Posture
Civil Litigation Directors' Duties (liquidators) / Interlocutory Costs Application Following Vacated Fixture
Outcome
Costs awarded to plaintiffs
Legal Topics
Discovery, Wasted Costs, Adjournment, Directors' Duties, Interlocutory Costs
Civil Procedure Company Law Costs Discovery Wasted Costs Adjournment Directors' Duties Interlocutory Costs

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Summary, issues, holding and outcome

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Parties

STEPHANIE BETH JEFFREYS

Plaintiff

TIMOTHY WILSON DOWNES

Plaintiff

ARTHUR SYLVAN MORGENSTERN

First Defendant

TANYA MAY LAVAS

Second Defendant

Procedural Posture

Civil Litigation Directors' Duties (liquidators) / Interlocutory Costs Application Following Vacated Fixture

Legal Issues

  1. 1 Whether costs should be awarded to plaintiffs for interlocutory applications that led to vacating the trial fixture due to late disclosure by defendants
  2. 2 Whether wasted costs arising from the vacated fixture should be awarded and, if so, how to quantify them
  3. 3 Whether the costs application should be deferred until after trial

Ratio Decidendi

Because the defendants breached discovery obligations by disclosing material documents late which justified leave but required vacating the fixture, the Court fixed costs now in favour of the plaintiffs, awarded wasted costs for trial-focused solicitor work at 50% and 50% of the lower expert fee estimates, and rejected deferral of the costs issue to trial.

Court Disposition

Costs awarded to plaintiffs

Orders

  • Costs on the application and hearing before MacKenzie J of $2,189.00
  • Wasted solicitors' costs (trial-focused items) of $4,975.00