HEB CONTRACTORS LIMITED V REDHILL DEVELOPMENT(NZ) LIMITED HC AK CIV 2008-404-004398

HEB CONTRACTORS LIMITED V REDHILL DEVELOPMENT(NZ) LIMITED HC AK CIV 2008-404-004398

Under High Court Rules r 476C the plaintiff who discontinues the proceedings must pay costs; the court declined to assess the merits of the untried dispute and applied that default rule, holding HEB must pay costs on a 2B basis in both sets of proceedings and disbursements as fixed by the Registrar.

Citation
openlaw-9528a2d4_9bd2_4e1b_92d9_d9c85df7c2ee.pdf
Parties
Plaintiff / Respondent: HEB Contractors Limited; Defendant / Applicant: Redhill Development (NZ) Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 November 2008
Procedural Posture
Summary Judgment Application; Application to Set Aside Statutory Demand; Related Substantive Proceedings Under the Construction Contracts Act / Costs Determination Following Discontinuance and Application to Set Aside Statutory Demand
Outcome
HEB Contractors Limited ordered to pay costs to Redhill Development (NZ) Limited on a 2B basis in both proceedings and to pay disbursements as fixed by the Registrar.
Legal Topics
Summary Judgment, Statutory Demand, Costs, Discontinuance, Construction Contracts Act
Civil Procedure Construction Law Insolvency Procedure Summary Judgment Statutory Demand Costs Discontinuance Construction Contracts Act

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Parties

HEB Contractors Limited

Plaintiff / Respondent

Redhill Development (NZ) Limited

Defendant / Applicant

Procedural Posture

Summary Judgment Application; Application to Set Aside Statutory Demand; Related Substantive Proceedings Under the Construction Contracts Act / Costs Determination Following Discontinuance and Application to Set Aside Statutory Demand

Legal Issues

  1. 1 Whether plaintiff who discontinues must pay costs under High Court Rules r 476C
  2. 2 Whether costs of the application to set aside a statutory demand should be decided analogously to costs on discontinuance
  3. 3 Whether the court should consider the merits of a claim it has not heard when deciding costs

Ratio Decidendi

Under High Court Rules r 476C the plaintiff who discontinues the proceedings must pay costs; the court declined to assess the merits of the untried dispute and applied that default rule, holding HEB must pay costs on a 2B basis in both sets of proceedings and disbursements as fixed by the Registrar.

Court Disposition

HEB Contractors Limited ordered to pay costs to Redhill Development (NZ) Limited on a 2B basis in both proceedings and to pay disbursements as fixed by the Registrar.

Orders

  • HEB Contractors Limited to pay costs on a 2B basis in both sets of proceedings.
  • HEB Contractors Limited to pay disbursements as fixed by the Registrar.