GOUGH v STRAHL [2014] NZHC 1038

GOUGH v STRAHL [2014] NZHC 1038

The first proceeding is a Re Buckton class 3 matter (beneficiary making a claim adverse to other beneficiaries) so costs are governed by r 14.2 rather than requiring payment from the trust fund; Harcourt was unsuccessful and must pay scale costs to Mr Strahl (NZD 34,626.00 plus NZD 966.80 disbursements) and to Mrs McKinnon on a 2B basis (NZD 48,954.00 plus NZD 3,696.20 disbursements); no award of increased costs was justified on the facts; costs on the unresolved issue of Harcourt's beneficiary status are to be fixed when that issue is determined.

Citation
[2014] NZHC 1038
Parties
Plaintiff (civ 2012 485 1574); Second Defendant (civ 2012 485 2027): Harcourt David Gough; First Defendant (civ 2012 485 1574; CIV 2012 485 2027): John Russell Strahl; Second Defendant (civ 2012 485 1574); Plaintiff (civ 2012 485 2027): Avenal Beryl Elizabeth McKinnon
Court
High Court
Jurisdiction
New Zealand
Judgment Date
16 May 2014
Procedural Posture
Trusts Litigation / Costs Judgment
Outcome
Costs awarded to John Russell Strahl and Avenal McKinnon against Harcourt David Gough; no increased costs awarded; costs not ordered to be paid from the trust fund for these proceedings
Legal Topics
Trust Administration, Costs Award, Re Buckton Classification, Increased Costs, Settlement Offers
Trusts Civil Procedure Costs Equity Trust Administration Costs Award Re Buckton Classification Increased Costs +1 more

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Parties

Harcourt David Gough

Plaintiff (civ 2012 485 1574); Second Defendant (civ 2012 485 2027)

John Russell Strahl

First Defendant (civ 2012 485 1574; CIV 2012 485 2027)

Avenal Beryl Elizabeth McKinnon

Second Defendant (civ 2012 485 1574); Plaintiff (civ 2012 485 2027)

Procedural Posture

Trusts Litigation / Costs Judgment

Legal Issues

  1. 1 Whether the proceedings fall within Re Buckton classes for payment of costs from the trust fund
  2. 2 Whether High Court Rules r 14.2 or r 14.6 governs costs allocation
  3. 3 Whether increased costs under r 14.6(3) are justified by refusal to accept settlement offers or conduct

Ratio Decidendi

The first proceeding is a Re Buckton class 3 matter (beneficiary making a claim adverse to other beneficiaries) so costs are governed by r 14.2 rather than requiring payment from the trust fund; Harcourt was unsuccessful and must pay scale costs to Mr Strahl (NZD 34,626.00 plus NZD 966.80 disbursements) and to Mrs McKinnon on a 2B basis (NZD 48,954.00 plus NZD 3,696.20 disbursements); no award of increased costs was justified on the facts; costs on the unresolved issue of Harcourt's beneficiary status are to be fixed when that issue is determined.

Court Disposition

Costs awarded to John Russell Strahl and Avenal McKinnon against Harcourt David Gough; no increased costs awarded; costs not ordered to be paid from the trust fund for these proceedings

Orders

  • Awarded costs in favour of Mr Strahl against Harcourt in the sum of NZD 34,626.00 plus disbursements NZD 966.80
  • Awarded costs in favour of Mrs McKinnon against Harcourt on a 2B basis in the sum of NZD 48,954.00 plus disbursements NZD 3,696.20