Karam v Parker

Case [2014] NZHC 2097


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2010-404-003038 [2014] NZHC 2097

BETWEEN

JOSEPH FRANCIS KARAM

Plaintiff

AND

KENT PARKER First Defendant

VIC PURKISS Second Defendant

Submissions filed: 4 and 16 July 2014

Judgment:

2 September 2014

JUDGMENT OF COURTNEY J

This judgment was delivered by Justice Courtney on 2 September 2014 at 3.00 pm

pursuant to R 11.5 of the High Court Rules

Registrar / Deputy Registrar

Date………………………

KARAM v PARKER & OR [2014] NZHC 2097 [2 September 2014]

Costs claimed by plaintiff

[1]      In my judgment dated 9 April 2014 I found in favour of the plaintiff, Mr Karam, and awarded indemnity costs against both defendants.   I invited a memorandum from the plaintiff as to the reasonable costs incurred for the purposes of fixing the indemnity costs.

[2]      Mr Karam’s counsel has filed a memorandum advising that Mr Parker is now bankrupt and Mr Purkiss thought to be living in the United Kingdom.   In those circumstances Mr Karam seeks only to have costs awarded on a 2B basis so as to avoid the time and cost of compiling the relevant information.

[3]      I accept that position and make an order varying my previous decision on costs and fixing costs now on a 2B basis in accordance with the table contained in Mr Reed QC’s memorandum of 4 July 2014, which totals $64,774.50, together with the disbursements sought totalling $11,350.

Costs claimed by first defendant

[4]      Mr Parker has filed a memorandum seeking to have a previous application for costs in favour of the defendants determined.  This application was filed in July

2012  in  relation  to  Mr  Karam’s  application  to  strike  out  the  second  amended statement   of   defence   and   the   defendants’  application   for   determination   of preliminary questions.  The defendants’ strike out application was withdrawn and, as a result of Mr Karam’s indication that he would re-draft the statement of claim, the defendants’ application for determination of preliminary questions was also withdrawn.

[5]      Mr Parker seeks indemnity costs and has produced invoices from the barrister who prepared submissions for the purposes of the application totalling $7,417.50. Mr Parker also seeks filing fees of $725.  There has been no response to Mr Parker’s memorandum from Mr Karam.

[6]      In the ordinary course costs would be fixed in relation to these applications in the defendants’ favour.  However, the right to seek costs is a right now vested in the official assignee. The application is therefore declined.

[7]      There is a final matter.  The fee notes are addressed directly to Mr Parker.  It is not apparent that there was an instructing solicitor.   I do not intend to take any action in relation to this but a copy of my decision will be sent to the barrister concerned,  drawing  attention  to  rule  14.4  of  the  Lawyers  and  Conveyancers

Lawyers:Conduct and Client Care) Rules 2008.

P Courtney J

Details
AGLC
Karam v Parker [2014] NZHC 2097
Case
[2014] NZHC 2097
Decision Date

CaseChat Overview and Summary

Joseph Francis Karam commenced proceedings against Kent Parker and Vic Purkiss in the High Court of New Zealand, Auckland Registry. The plaintiff sought damages for breach of fiduciary duty, breach of contract, and deceit, among other claims. The court was tasked with determining whether the defendants had breached their fiduciary duties, breached contractual obligations, or engaged in deceitful conduct. Additionally, the court needed to decide on the appropriate costs to be awarded to both parties, considering the financial status of the defendants.

In its judgment, the court accepted the plaintiff's submission that costs should be fixed on a costs in the case basis to avoid unnecessary time and expense given the defendants' financial circumstances. The court awarded the plaintiff costs totalling $64,774.50, plus disbursements of $11,350. Regarding the defendants' application for costs, the court declined the application, noting that the right to seek costs now vested with the official assignee due to the defendant's bankruptcy. The court also highlighted the importance of proper fee note practices, directing the concerned barrister to comply with relevant rules.

The court's final orders included awarding the plaintiff costs on a costs in the case basis, declining the defendants' application for costs, and noting the importance of adhering to fee note regulations. This decision effectively concluded the cost-related aspects of the proceedings, providing clarity on the financial responsibilities of the parties involved.

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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