Gorrie Fuel (Si) Ltd v Gittoes

Case [2008] NZCA 59


IN THE COURT OF APPEAL OF NEW ZEALAND

CA659/07
[2008] NZCA 59

BETWEENGORRIE FUEL (SI) LIMITED


Applicant

ANDWILLIAM DAVID GITTOES


Respondent

Counsel:O G Paulsen for Applicant


T J Twomey for Respondent

Judgment:14 March 2008 at 2.30 pm

(on the papers)

JUDGMENT OF ARNOLD J

The applicant must pay the respondent costs of $500, plus usual disbursements.

REASONS

[1]       The applicant has abandoned its application for leave to appeal from a decision of Judge Couch in the Employment Court: EmpC CHCH CC21/07 and CRC11/06 8 November 2007.  The respondent seeks an order for costs on an indemnity basis.  He says that his actual costs to date are $1,852, plus $42 by way of disbursements.

[2]       The grounds on which the respondent claims indemnity costs are that counsel had to undertake considerable work so that he could discuss the merits of the appeal with the respondent, and that the proposed appeal was meritless and vexatious in nature. 

[3]       Where a respondent seeks costs in relation to an appeal which has been abandoned at an early stage, the usual practice of the Court is to make a modest award of costs, up to $500.  I do not consider that there is any reason to depart from that practice in this case.  The respondent’s claim that the appeal was without merit is not one which I can determine on the material before me.  The other consideration raised by the respondent is not sufficient to justify the award of costs on an indemnity basis.  See generally, the judgment of this Court in Peters v Television New Zealand (2005) 18 PRNZ 149, especially at [19]-[21].

[4]       Accordingly, I order the applicant to pay costs of $500, plus usual disbursements, to the respondent.

Solicitors:

Cavell Leitch Pringle & Boyle, Christchurch for Applicant
Purnell Creighton, Christchurch for Respondent

Details
AGLC
Gorrie Fuel (Si) Ltd v Gittoes [2008] NZCA 59
Case
[2008] NZCA 59
Decision Date

CaseChat Overview and Summary

Gorrie Fuel (Si) Ltd applied for leave to appeal from a decision of the Employment Court. The respondent, William David Gittoes, sought an order for costs on an indemnity basis, arguing that the appeal was meritless and vexatious. Gittoes claimed his actual costs to date were $1,852, plus $42 by way of disbursements. The grounds for indemnity costs were based on the considerable work counsel had to undertake to discuss the merits of the appeal with Gittoes and the perceived meritlessness and vexatiousness of the proposed appeal.

The Court of Appeal found that the usual practice is to make a modest award of costs, up to $500, where an appeal is abandoned at an early stage. The Court could not determine the meritlessness of the appeal on the material before it and did not consider the other consideration raised by Gittoes sufficient to justify an award of costs on an indemnity basis. The Court referred to its earlier judgment in Peters v Television New Zealand to support its decision. The Court ordered Gorrie Fuel (Si) Ltd to pay costs of $500, plus usual disbursements, to Gittoes.

In conclusion, the Court of Appeal dismissed the application for leave to appeal and ordered Gorrie Fuel (Si) Ltd to pay Gittoes costs of $500, plus usual disbursements. The Court did not find the appeal to be meritless or vexatious, but considered a modest award of costs appropriate given the early abandonment of the appeal.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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