Niardone v Clubb (No 3) [2021] FCA 1449

Federal Court of Australia

Niardone v Clubb (No 3) [2021] FCA 1449 File number: WAD 7 of 2021

Judgment of: COLVIN J

Date of judgment: 19 November 2021

Catchwords: COSTS - assessment of costs of urgent injunction application and cross-claim proceedings - where both parties seek payment of costs of proceedings - where respondent/cross-claimant appointed administrators to company to recover disputed fees - where orders made for appointment of administrators to be brought to an end - where party appointing administrators subsequently found to be successful as to claim to very limited extent as to entitlement to due diligence fee - where company indicated willingness to pay due diligence fee prior to appointment of administrators if not for insistence on payment of other disputed fees - whether conduct in appointing administrators unreasonable or justified on basis of limited success - whether provision in agreement between parties providing for liability for recovery costs applies - whether appropriate to award costs on indemnity basis by reason of unreasonable conduct in relation to offers to compromise - whether offers of compromise complied with Federal Court Rules 2011 (Cth)

Legislation: Corporations Act 2001 (Cth) ss 435A, 435C, 447A Federal Court of Australia Act 1976 (Cth) ss 43, 51A Personal Properties Securities Act 2009 (Cth) Federal Court Rules 2011 (Cth) r 25.14, Part 25

Cases cited: Anchorage Capital Partners Pty Limited v ACPA Pty Ltd (No 2) [2018] FCAFC 112 Clifton (Liquidator) v Kerry J Investment Pty Ltd t/as Clenergy (No 2) [2020] FCAFC 112; (2020) 277 FCR 382 Createc Pty Ltd v Design Signs Pty Ltd [2009] WASCA 85 Dr Martens Australia Pty Ltd v Figgins Holdings Pty Ltd (No 2) [2000] FCA 602 Firebird Global Master Fund II Ltd v Republic of Nauru (No 2) [2015] HCA 53 Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52 Forsyth v Sinclair (No 2) [2010] VSCA 195; (2010) 28 VR 635 Gray v Richards (No 2) [2014] HCA 47 Grocon Constructors (Qld) Pty Ltd v Dexus Funds Management Limited as Trustee for the Dexus 480Q Trust (No 2) [2019] FCA 1117 Hockey v Fairfax Media Publications Pty Limited (No 2) [2015] FCA 750; (2015) 237 FCR 127 Kazar (Liquidator) v Kargarian; In the matter of Frontier Architects Pty Ltd (In Liq) [2011] FCAFC 136; (2011) 197 FCR 113 Les Laboratoires Servier v Apotex Pty Ltd [2016] FCAFC 27; (2016) 247 FCR 61 Meehan v Glazier Holdings Pty Ltd [2005] NSWCA 24 Motium Pty Ltd v Arrow Electronics Australia Pty Ltd [2011] WASCA 65 (S) Nassif v Seven Network (Operations) Ltd (No 2) [2021] FCA 1390 Niardone v Clubb [2021] FCA 14 Norbis v Norbis (1986) 161 CLR 513 Oshlack v Richmond River Council (1998) 193 CLR 72 Pinot Nominees Pty Ltd v Commissioner of Taxation [2009] FCA 1508; (2009) 181 FCR 392 Queensland North Australia Pty Ltd v Takeovers Panel (No 2) [2015] FCAFC 128; (2015) 236 FCR 370 Re Sales Express Pty Ltd (Administrators Appointed) [2014] NSWSC 460 Re Wollongong Coal Ltd [2015] NSWSC 1680 Snedden v Republic of Croatia (No 2) [2009] FCAFC 132 Spacorp Australia Pty Ltd v Fitzgerald [2001] VSC 61 Stewart v Atco Controls Pty Ltd (in liq) (No 2) [2014] HCA 31; (2014) 252 CLR 331 Trustee for The MTGI Trust v Johnston (No 2) [2016] FCAFC 190