Attorney-General v Institution of Professional Engineers New Zealand Incorporated

Case [2018] NZHC 507


IN THE HIGH COURT OF NEW ZEALAND

WELLINGTON REGISTRY

CIV-2015-485-000223

[2018] NZHC 507

BETWEEN

THE ATTORNEY-GENERAL

Plaintiff

AND

INSTITUTION OF PROFESSIONAL ENGINEERS NEW ZEALAND INCORPORATED

First Defendant

AND

ALAN MICHAEL REAY

Second Defendant

Hearing: 27 April 2017

Appearances:

K G Stephen and I M G Clarke for Plaintiff and First Respondent H J P Wilson and M J Neill for First Defendant and Second

Respondent
W J Palmer and O D Peers for Second Defendant and Applicant

Judgment:

22 March 2018


COSTS JUDGMENT OF WILLIAMS J


Final Ruling and Orders

[1]                 On 8 March 2018, Dr Reay’s counsel filed a memorandum advising that the parties could not agree on costs. The memorandum also advised that Dr Reay seeks costs on a 2B basis plus disbursements against the Attorney-General and Institute of Professional Engineers New Zealand Incorporated (IPENZ). This results in costs of

$12,934.00 plus disbursements of $1728.21.

[2]                 On 16 March 2018, the Attorney-General and IPENZ’s counsel filed a memorandum accepting that costs on a 2B basis but seeking a reduction in Dr Reay’s costs award in the following two respects:

THE ATTORNEY-GENERAL v INSTITUTION OF PROFESSIONAL ENGINEERS NEW ZEALAND INCORPORATED [2018] NZHC 507 [22 March 2018]

(a)$892.00 in relation to a memorandum dated 29 May 2017; and

(b)one third to recognise that Dr Reay was not successful in respect of the privilege element of the argument and that a large portion of the hearing was spent establishing the existence of legal advice after it was made clear that this was unnecessary.

[3]I set out briefly my view as follows:

(a)Having reviewed the document of 29 May 2017, I do not accept that costs are justified in respect of it. The memorandum was no more than a placeholder.

(b)I do not accept that a deduction of one third of the total costs is warranted. It is clear that a successful party is entitled to full costs where the plaintiff succeeded in the essential step of the argument, in this case, waiver.1

[4]Dr Reay is accordingly entitled to costs of $12,042.00 and disbursements of

$1728.


Williams J

Solicitors:

Crown Law, Wellington for Plaintiff
Kensington Swan, Wellington for First Defendant

Buddle Findlay, Christchurch for Second Defendant


1      See Easton Agriculture Ltd v Manawatu-Wanganui Regional Council [2013] NZCA 79 at [132].

Details
AGLC
Attorney-General v Institution of Professional Engineers New Zealand Incorporated [2018] NZHC 507
Case
[2018] NZHC 507
Decision Date

CaseChat Overview and Summary

The case before the High Court of New Zealand involved the Attorney-General as the plaintiff, with the Institution of Professional Engineers New Zealand Incorporated (IPENZ) and Alan Michael Reay as defendants. The central issue in dispute was the allocation of costs following a legal matter that was ultimately resolved in favour of the plaintiff. Dr Reay, the second defendant, sought costs on a standard basis plus disbursements against both the Attorney-General and IPENZ.

The court had to determine whether certain costs incurred by Dr Reay were justified and whether a reduction in the awarded costs was warranted. Specifically, the court examined a memorandum dated 29 May 2017, and whether costs associated with it were necessary. Additionally, the court considered whether a one-third reduction in Dr Reay's costs was appropriate, given that he was not successful on the privilege aspect of his argument and that a significant portion of the hearing was dedicated to establishing the existence of legal advice.

The High Court, presided over by Williams J, ruled that the costs associated with the 29 May 2017 memorandum were unjustified, as it was merely a placeholder document. The court also found that a one-third reduction in Dr Reay's costs was not warranted, as the successful party was entitled to full costs where the plaintiff had succeeded in the essential step of the argument. Consequently, Dr Reay was awarded costs of $12,042.00 plus disbursements of $1,728.21.

This ruling ensures that the prevailing party receives full compensation for the legal costs incurred, reflecting the importance of the successful waiver argument in the proceedings.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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