Maraetai Co Limited v Yu

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2020-404-398

[2020] NZHC 2950

BETWEEN
MARAETAI CO LIMITED

Plaintiff

AND

ZUO YAO YU

Defendant

Hearing: On the papers

Counsel:

J Little for the Plaintiff

Judgment:

9 November 2020

JUDGMENT OF GAULT J

(Costs)

This judgment was delivered by me on 9 November 2020 at 2:00 pm pursuant to r 11.5 of the High Court Rules 2016.
Registrar/Deputy Registrar

……………………………………

Solicitors / Counsel:
Mr G Blanchard QC and Mr J Little, Barristers, Auckland
Ms D Marsden (plaintiff’s instructing solicitor), Alexander Dorrington, Auckland

MARAETAI CO LTD v YU [2020] NZHC 2950 [9 November 2020]

[1] Following my judgment of 3 November 20201 granting the plaintiff’s application to vacate the Court’s earlier order for specific performance, the plaintiff seeks costs on a 2B basis, totalling $5,736, plus disbursements of $500.

[2] The plaintiff is entitled to costs on a 2B basis. Those costs are limited to filing the interlocutory application and obtaining judgment without appearance, totalling
$2,151. In the absence of opposition, I do not allow for the preparation of written submissions. The disbursements sought are allowed.

Result

[3]The plaintiff is entitled to costs of $2,151 plus disbursements of $500.

Gault J

1 Maraetai Co Ltd v Yu [2020] NZHC 2870.

CaseChat Overview and Summary

In Maraetai Co Limited v Yu, the plaintiff, Maraetai Co Limited, sought costs following a judgment which vacated an earlier order for specific performance. The court was tasked with determining the appropriate amount of costs to award the plaintiff under the 2B basis, which pertains to cases where the costs are not to be awarded on an indemnity basis but are instead limited to certain specified matters. Additionally, the court had to assess the disbursements claimed by the plaintiff. The plaintiff argued that they were entitled to the full amount of costs, including those associated with the preparation of written submissions, despite the absence of opposition to the application. The defendant, Zuo Yao Yu, did not oppose the application for costs, which simplified the court's decision-making process.

The court had to consider whether the costs claimed by the plaintiff were reasonable and necessary, and if they fell within the scope of what could be awarded under the 2B basis. The court also needed to decide if the preparation of written submissions constituted necessary costs, given that there was no opposition to the application. Furthermore, the court assessed the reasonableness of the disbursements claimed by the plaintiff. Given that the defendant did not oppose the application for costs, the court's reasoning focused on the reasonableness of the costs and disbursements claimed by the plaintiff, without the need to weigh arguments from both sides.

The court determined that the plaintiff was entitled to costs on a 2B basis, but these were limited to the costs associated with filing the interlocutory application and obtaining judgment without appearance. The court found that the preparation of written submissions was not necessary in the absence of opposition. Consequently, the plaintiff was awarded costs of $2,151, excluding the costs for preparing written submissions. Additionally, the court allowed the disbursements claimed by the plaintiff, amounting to $500. The total amount awarded to the plaintiff was $2,651.

The court ordered that the defendant, Zuo Yao Yu, pay the plaintiff, Maraetai Co Limited, costs of $2,151 plus disbursements of $500, bringing the total amount payable by the defendant to $2,651. This decision was based on the court's assessment that the costs claimed were reasonable and necessary, and that the disbursements were properly incurred in the course of the litigation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Hearing:	On the papers
Counsel:	J Little for the Plaintiff
Judgment:	9 November 2020