Nichols v Racey Constructions Pty Limited

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV 2013-404-3606 [2015] NZHC 868

BETWEEN
RHONDA MARIE NICHOLS

Plaintiff

AND

RACEY CONSTRUCTIONS PTY LIMITED

First Defendant

AND

DAVID GEOFFREY PUNTER Second Defendant

Hearing: On Papers

Judgment:

29 April 2015

COST JUDGMENT OF BROWN J

[1] In accordance with the directions in para [30] of my judgment1 memoranda have been filed by Mr Punter, on behalf of himself and the first defendant, and by Ms Nichols. It appearing that the plaintiff accepts the amounts of disbursements identified by the first and second defendants as fair and reasonable, I make an order for the payment by the plaintiff of the following disbursements:

(a) cost of air travel from Australia to New Zealand and return: AUD$803.00;

(b) taxi fares and sundry expenses in New Zealand: NZ$250.00;

(c) sundry travel to solicitors’ appointments, phone calls to New Zealand

High Court etc: NZ$400.00.

1 Nichols v Racey Constructions Pty Ltd & Ors [2014] NZHC 2995.

RHONDA MARIE NICHOLS v RACEY CONSTRUCTIONS PTY LTD [2015] NZHC 868 [29 April 2015]

[2] In his memorandum of 24 January 2015 Mr Punter also appears to seek to recover approximately $50,000 in legal expenses and approximately $6,700 for wages paid to Ms Stacey Wakeman. That request is opposed by the plaintiff on the grounds that it does not comply with the order in my judgment.

[3] I agree with the plaintiff that those sums identified by Mr Punter are not recoverable. However his memorandum has alerted me to the fact that, although he was not represented at the hearing, he was represented during the early stages of the proceeding when Kensington Swan filed a number of documents on behalf of the first and second defendants.

[4] I consider that the defendants are entitled to their costs prior to the date of the withdrawal of their legal representation in September 2014. Consequently I direct that the defendants are entitled to the following items of costs on a category 2B
basis:

Commencement of defence2 2 $3,980.00

Preparation for first case management conference

0.4

$796.00

Filing memorandum for first case management conference3

0.4

$796.00

Appearance at first case management conference

0.3

$597.00

List of documents on discovery4

2.5

$4,975.00

2      Statement of Defence filed 1 October 2013.
3      Memorandum dated 12 November 2013.
4      Affidavit of documents filed 13 January 2014.

[5] Accordingly the defendants are entitled to costs of $11,144.00 and

disbursements of AUD$803.00 and NZ$650.00.

Brown J

Solicitors:
Law Direct, Kerikeri

CaseChat Overview and Summary

Rhonda Marie Nichols initiated proceedings against Racey Constructions Pty Limited and David Geoffrey Punter in the High Court of New Zealand, Auckland Registry. The plaintiff, Rhonda Marie Nichols, sought damages for alleged breaches of contract and misrepresentations made during the sale of a property. The defendants, Racey Constructions Pty Limited and David Geoffrey Punter, contested the claims, leading to a dispute over costs incurred during the litigation process.

The central legal issue before the court was the assessment and recovery of costs by the defendants. The defendants sought reimbursement for various disbursements and legal fees incurred during the litigation, which the plaintiff contested on several grounds. The court had to determine which of the costs claimed by the defendants were reasonable, recoverable, and in compliance with previous court orders.

In his judgment, Justice Brown assessed the costs claimed by the defendants. He ruled that while some costs were reasonable and recoverable, others were not. Specifically, the court found that certain disbursements, such as travel expenses, were justified. However, it rejected the defendants' claims for substantial legal fees and other expenses on the grounds that they did not comply with the previous court order. The court allowed the defendants to recover costs incurred before the withdrawal of their legal representation in September 2014. Consequently, the defendants were awarded $11,144.00 in costs and $1,453.00 in disbursements.

Justice Brown made a final order that Rhonda Marie Nichols pay the defendants the sum of $11,144.00 in costs and $1,453.00 in disbursements. This decision was based on the reasonable and fair costs incurred by the defendants up until a specific point in the proceedings, excluding those that were not in line with the prior court order.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Commencement of defence2	2	$3,980.00
Preparation for first case management conference	0.4	$796.00
Filing memorandum for first case management conference3	0.4	$796.00
Appearance at first case management conference	0.3	$597.00
List of documents on discovery4	2.5	$4,975.00