Jasani v Vincent Capital Limited

Case [2019] NZHC 146


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV 2018-404-2731

[2019] NZHC 146

BETWEEN

SHAMEER JASANI

Plaintiff

AND

VINCENT CAPITAL LIMITED

Defendant

Hearing: On the papers

Appearances:

G K Holm-Hansen for the plaintiff M D Arthur for the defendant

Judgment:

13 February 2019


JUDGMENT OF JAGOSE J

[Costs]


This judgment is delivered by me on 13 February 2019 at 3.00 pm pursuant to r 11.5 of the High Court Rules.

.....................................................

Registrar / Deputy Registrar

Solicitors:

Hesketh Henry, Auckland (plaintiff) Chapman Tripp, Auckland (defendant)

JASANI v VINCENT CAPITAL LTD [2019] NZHC 146 [13 February 2019]

[1]                 My judgment of 17 December 2018 dismissed the plaintiff’s urgent application for interim relief, and reserved costs in favour of the defendant.

[2]The defendant now seeks indemnity costs and disbursements in terms of clause

14.1 of its Facility Loan Agreement with the plaintiff, dated 26 June 2018. The plaintiff agrees that is the defendant’s entitlement,1 but disputes the costs claimed are reasonable “having regard for to the rates charged, the overall fee sought, and the lack of detail provided in respect of some of the costs claimed”. In particular dispute is the reasonableness of the defendant’s solicitors’ charging and work practices.

[3]                 As discussed without objection from counsel at the outset of the application’s substantive hearing, until relatively recently, I was a long-standing litigation partner in the defendant’s solicitors’ firm, Chapman Tripp. Although that presented no issue for my determination of the application, in deciding costs, I cannot disregard my comprehensions of the firm’s charging and work practices. That makes it inappropriate for me to decide the disputes raised.

[4]                 Given the parties’ agreement, I therefore will order the plaintiff to pay the defendant indemnity costs, being “the actual costs, disbursements and witness expenses reasonably incurred” by the defendant,2 but make provision for the quantification of such to be determined by the Registrar in accordance with Subpart 2 of Part 14 of the High Court Rules. Such determination is then subject to review.3

[5]I order the defendant is entitled to indemnity costs as taxed.

—Jagose J


1      HCR 14.6(4)(e).

2      HCR 14.6(1)(b).

3      HCR 14.23.

Details
AGLC
Jasani v Vincent Capital Limited [2019] NZHC 146
Case
[2019] NZHC 146
Decision Date

CaseChat Overview and Summary

The case of Jasani v Vincent Capital Limited was brought before the High Court of New Zealand at Auckland, where Shameer Jasani, the plaintiff, sued Vincent Capital Limited, the defendant. The primary issue in this case was the defendant's claim for indemnity costs and disbursements under clause 14.1 of their Facility Loan Agreement dated 26 June 2018. The plaintiff conceded the defendant's entitlement to such costs but challenged the reasonableness of the fees claimed, specifically questioning the defendant's solicitors' charging and work practices. The judge, Jagose J, was initially a partner at the defendant's law firm, Chapman Tripp, which created a conflict of interest in adjudicating the case's costs.

The court faced the challenge of determining whether the costs claimed by the defendant were reasonable, taking into account the rates charged, the overall fee sought, and the transparency of the costs claimed. Jagose J acknowledged the potential bias due to his prior association with Chapman Tripp, deeming it inappropriate for him to rule on the matter. Therefore, the judge ordered the plaintiff to pay the defendant indemnity costs, which would be quantified by the Registrar according to the High Court Rules. This decision was subject to review, ensuring that the plaintiff's concerns about the reasonableness of the fees would be addressed appropriately.

The court ordered that the defendant, Vincent Capital Limited, was entitled to indemnity costs as taxed. This judgment ensured that the defendant's financial burden was mitigated while maintaining the integrity of the legal process by deferring the quantification of costs to the Registrar. This decision underscored the importance of impartiality in legal proceedings and the necessity for a fair assessment of costs in contractual disputes.

In conclusion, the court ruled that the defendant was entitled to indemnity costs as stipulated in the Facility Loan Agreement. The judge's prior affiliation with the defendant's law firm necessitated the involvement of the Registrar to ensure an unbiased assessment of the costs claimed. This ruling aimed to balance the interests of both parties, upholding the contractual obligations while addressing the plaintiff's concerns regarding the reasonableness of the fees.

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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