Federal Court Allows Early Recovery of Legal Costs

OUTCOME: Allowed

FEDERAL COURT OF AUSTRALIA

[NAME] v [COMPANY] (No. 2) [2008] FCA 187 PRACTICE AND PROCEDURE – consideration of an application for an order in relation to costs pursuant to order 62, rule 3 of the Federal Court Rules Federal Court Rules, Order 62, Rule 3 [NAME] AND [NAME] v [COMPANY] [PHONE] (IN ITS CAPACITY AS TRUSTEE FOR THE [COMPANY]) [COMPANY] [PHONE] (IN ITS CAPACITY AS TRUSTEE FOR THE [COMPANY]) QUD 28 OF 2007

GREENWOOD J

23 january 2008

BRISBANE IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY QUD 28 OF 2007

BETWEEN: [NAME]

First Applicant

[NAME] Applicant

AND: [COMPANY] (ACN [PHONE]) (IN ITS CAPACITY AS TRUSTEE FOR THE [COMPANY])

[COMPANY] (ACN [PHONE]) (IN ITS CAPACITY AS TRUSTEE FOR THE [COMPANY])

Second Respondent

JUDGE: GREENWOOD J

DATE OF ORDER: 23 JANUary 2008

WHERE MADE: BRISBANE

THE COURT ORDERS THAT:

1. Leave be given to the first and second applicants to deliver and tax a bill of costs in relation to the costs the subject of order 2 of the orders of the Court made on 23 January 2008, notwithstanding that the principal proceeding is not concluded and the respondents in the proceeding shall pay those costs either determined by taxation or by agreement forthwith upon taxation or agreement notwithstanding that the principal proceeding is not concluded. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY QUD 28 OF 2007

BETWEEN: [NAME]

First Applicant

[NAME] Applicant

AND: [COMPANY] [PHONE] (IN ITS CAPACITY AS TRUSTEE FOR THE [COMPANY]

[COMPANY] [PHONE] (IN ITS CAPACITY AS TRUSTEE FOR THE [COMPANY])

Second Respondent

JUDGE: GREENWOOD J

DATE: 23 JANUARY 2008

PLACE: BRISBANE

EX TEMPORE

REASONS FOR

JUDGMENT 1 I have before me an application for an order that the costs, the subject of order (2) of the orders made today in [NAME] v [COMPANY] [2008] FCA 26, be the subject of a further order pursuant to order 62 rule 3(3) that the party having the benefit of the costs order, the first and second applicants, be entitled to deliver a bill of costs and recover those costs prior to the determination of the proceedings. The authority of [COMPANY] v [COMPANY] (No. 2) – BC200704540 has been cited to me as a basis upon which leave ought not to be given pursuant to order 62 rule 3(3). The point of differentiation between that decision of Besanko J and the present case is that the circumstances confronting Besanko J involved default in the conduct of a proceeding. 2 The orders made in this matter ([NAME] v [NAME]) relate to orders consequent upon an independent application for leave to extend time for leave to appeal from an interlocutory judgment. The applicants for leave have failed to comply with the rules and seek to make out special grounds for leave. I am satisfied that that matter is a discrete matter rather than a costs order in the course of the resolution of step in the proceeding itself.

Accordingly, I make a further order that the costs of the interlocutory proceeding shall be costs which the party having the benefit of that order is entitled to pursue and I give leave to deliver a bill of costs immediately. I certify that the preceding two (2) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Greenwood.

Associate: Dated: 23 January 2008 Counsel for the Applicants (Respondents on the Motion): Mr [COUNSEL]

Solicitor for the Applicants (Respondents on the Motion): [NAME]

Solicitor for the Respondents (Applicants on the Motion): [NAME], [COMPANY] of Hearing: 23 January 2008

Date of Judgment: 23 January 2008