WESTPAC NEW ZEALAND LIMITED (1763882) VP DUGGAL AND K DUGGAL AS TRUSTEES OF THE AMAR SANT FAMILY TRUST HC HAM CIV-2012-419-249
The Court declined to depart from the Court of Appeal's ruling in re Collier and held that lay litigant trustees are not entitled to general scale costs; they are entitled only to reasonable disbursements, which are to be submitted and approved by the Registrar.
Source-derived case information.
- Citation
- openlaw-c712acfe_3938_40c7_be13_4dff405f0fce.pdf
- Parties
- Plaintiff: Westpac New Zealand Limited; Defendants: Pankaj Duggal and Kamlesh Duggal as trustees of the Amar Sant Family Trust
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 13 November 2012
- Procedural Posture
- Application for Summary Judgment / Costs Determination After Discontinuance and Striking Out
- Outcome
- No order for general costs for the defendants; defendants awarded reasonable disbursements only.
- Legal Topics
- Party and Party Costs, Lay Litigant Costs Rule, Disbursements, Striking Out, Discontinuance
Source-derived case record
Summary, issues, holding and outcome
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Parties
Westpac New Zealand Limited
Plaintiff
Pankaj Duggal and Kamlesh Duggal as trustees of the Amar Sant Family Trust
Defendants
Procedural Posture
Application for Summary Judgment / Costs Determination After Discontinuance and Striking Out
Legal Issues
- 1 Whether lay litigant trustees are entitled to general scale costs
- 2 Whether re Collier precedent remains binding despite rule changes
- 3 Whether disbursements can be awarded to lay litigants
Ratio Decidendi
The Court declined to depart from the Court of Appeal's ruling in re Collier and held that lay litigant trustees are not entitled to general scale costs; they are entitled only to reasonable disbursements, which are to be submitted and approved by the Registrar.
Court Disposition
No order for general costs for the defendants; defendants awarded reasonable disbursements only.
Orders
- Defendants are entitled to their reasonable disbursements as submitted and approved by the Registrar.
Full Case Text
Judgment text and source record
1 paragraphs
WESTPAC NEW ZEALAND LIMITED (1763882) VP DUGGAL AND K DUGGAL AS TRUSTEES OF THE AMAR SANT FAMILY TRUST HC HAM CIV-2012-419-249 [13 November 2012]IN THE HIGH COURT OF NEW ZEALANDHAMILTON REGISTRYCIV-2012-419-249[2012] NZHC 2998UNDER Part 12 of the High Court RulesIN THE MATTER OF an application for summary judgmentBETWEEN WESTPAC NEW ZEALAND LIMITED(1763882)PlaintiffAND PANKAJ DUGGAL AND KAMLESHDUGGAL AS TRUSTEES OF THEAMAR SANT FAMILY TRUSTDefendants(On the papers)Counsel: BJ Upton for plaintiffAppearance: P Duggal, first-named defendant in personJudgment: 13 November 2012JUDGMENT OF ASSOCIATE JUDGE FAIRE[on costs]Solicitors: Simpson Grierson, Private Bag, 92 518, AucklandAnd To: P and K Duggal, 30B Glenview Terrace, Hamilton[1] On 20 August 2012 I struck out the plaintiff's proceeding. The proceedinghad sought judgment against the two trustees of the Amar Sant Family Trust. The plaintiff accepted that the defendants in this proceeding were independent trustees and that it was not appropriate to proceed and therefore filed a notice of discontinuance. That led to my order striking out the proceeding.[2] The defendants and counsel for the plaintiff were alerted by me to the long- standing position adopted by the Court and which has its foundation in the judgmentre Collier (a bankrupt).1 That case held that there is an established rule in New Zealand that a lay litigant is not entitled (except in exceptional cases) to recover costs, although the Court has a discretion to allow disbursements.[3] There are no exceptional circumstances in this case. Mr Duggal, on behalf of the other defendant, argued, however, that the foundation for the rule set by re Collier was questionable and that the time had been reached where the general scale of allowed costs contained in Part 14 of the High Court Rules should be allowed. In short, he submitted that if a party was successful that party should enjoy an order for costs irrespective of whether the party employs a person on the roll of barristers and solicitors to act for that successful party.[4] Mr Duggal has referred to the refinements to the High Court Rules that have been developed since the leading authorities pronounced on this subject.[5] The leading authority is the Court of Appeal judgment in re Collier (a bankrupt). I do not regard any of the changes as indicating a change in the general rule which was adopted by the Court of Appeal. I am bound by decisions of the Court of Appeal and do not consider I have any justification for the reasons that are set out in Mr Duggal's paper for not following it.[6] Accordingly, I conclude that it is not appropriate that any cost order be made in favour of the defendants in this case. The defendants are entitled to their1 re Collier (a bankrupt) [1996] 2 NZLR 438 (CA), (1996) 10 PRNZ 145.reasonable disbursements. That is acknowledged responsibly by the plaintiff'scounsel in the memorandum that has been filed.[7] Accordingly, I order that the defendants are entitled to their reasonable disbursements as submitted and approved by the Registrar._____________________JA FaireAssociate Judge