| IN THE SUPREME COURT OF NEW ZEALAND |
| SC 78/2014 [2015] NZSC 31 |
| BETWEEN | LFDB |
| AND | SM |
| Hearing: | 5 December 2014 |
Court: | Elias CJ, McGrath, William Young, Glazebrook and Arnold JJ |
Counsel: | M S Smith for Appellant |
Judgment: | 31 March 2015 |
JUDGMENT OF THE COURT
AThe appellant must pay costs of $52,245.63 and disbursements of $1,511.12 in respect of the appeal.
BThe appellant must also pay in addition to costs previously ordered, disbursements of $437.30 in respect of the stay application determined by the Court.[1]
____________________________________________________________________
REASONS
The Court revoked its grant of leave to appeal in this matter on 5 December 2014 giving reasons on 22 December 2014.[2] Costs were reserved.
The respondent has applied for costs to be fixed on an indemnity basis. The schedule to counsel’s memorandum lists items totalling $52,245.63 for costs and $1,511.12 for disbursements.[3] The respondent has also applied for an order that the appellant pay disbursements of $437.30 on the earlier stay application to this Court.
[3]We have corrected an arithmetical error in the schedule and treated the claim as being for the total of items listed.
There is no issue as to the reasonableness of any of the amounts claimed, but the appellant seeks a reduction in the costs award to recognise when leave to appeal was granted he had identified issues which the Court had accepted warranted a grant of leave. We do not accept that submission. The Court revoked leave having come to the conclusion that the appeal was an abuse of process. In those circumstances we are satisfied that an award of full indemnity costs, and disbursements, as set out above, is appropriate, as is an order in relation to the disbursements on the stay application.
The respondent also sought ancillary orders as to dates by which payment of costs was to be made and for payment to be made out of identified bank accounts. We do not consider such orders appropriate.
Solicitors:
Holland Beckett, Tauranga for Appellant
Friedlander & Co Ltd, Auckland for Respondent
- AGLC
- LFDB v SM [2015] NZSC 31
- Case
- [2015] NZSC 31
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Court was the determination of the appropriate basis and extent of costs to be awarded to SM for the costs incurred during the appeal process. The respondent argued for an indemnity basis for costs, contending that the appeal was frivolous and without merit. The appellant, on the other hand, sought a reduction in the costs, arguing that at the time leave to appeal was granted, there were issues that warranted such leave, thereby reducing the merit of the appeal as an abuse of process.
The Court found no issue with the reasonableness of the amounts claimed for costs and disbursements. However, it rejected the appellant’s argument for a reduced costs award, reaffirming its earlier decision that the appeal constituted an abuse of process. The Court concluded that an award of full indemnity costs, as well as disbursements for both the appeal and the stay application, was appropriate. Additionally, the Court did not deem it necessary to order specific dates for payment or require payment from particular bank accounts, dismissing those ancillary requests made by the respondent.
The final orders required LFDB to pay SM costs of $52,245.63 and disbursements of $1,511.12 for the appeal, as well as additional disbursements of $437.30 for the stay application. The Court's decision underscored the importance of the integrity of the appellate process and the consequences for parties that abuse it.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.