Business Finance Pty Ltd (Receiver and Manager Appointed) v Mudge [2021] NSWSC 733

Supreme Court New South Wales

Medium Neutral Citation: Business Finance Pty Ltd (Receiver and Manager Appointed) v Mudge [2021] NSWSC 733 Hearing dates: On the papers Date of orders: 22 June 2021 Decision date: 22 June 2021 Jurisdiction: Equity Before: Darke J Decision: Order that the first defendant pay the plaintiffs' costs of the proceedings on the ordinary basis, in the specified gross sum of $110,000 (including GST) Catchwords: COSTS – indemnity costs – Court ordered the withdrawal of the defendant's caveats – no serious question or prima facie case found – plaintiffs seek their costs on an indemnity basis – defendant self-represented during proceedings – defendant's conduct did not substantially increase plaintiffs' costs – defendant's claims of caveatable interest lacked substance but Court not satisfied that the defendant lodged the caveats without an honest belief based on reasonable grounds that he had a caveatable interest – costs awarded to plaintiffs on the ordinary basis COSTS – gross sum order – real likelihood that defendant will be unable to meet substantial costs order – costs assessment likely to be lengthy and expensive – appropriate to make gross sum order – plaintiffs incurred actual costs of about $150,000 – discount of 25% applied to solicitors' fees – modest further global discount applied to avoid unfairness to defendant – gross sum order made for $110,000 Legislation Cited: Civil Procedure Act 2005 (NSW) s 98(4)(c) Legal Profession Act 1987 (NSW) s 203 Real Property Act 1900 (NSW) ss 74MA, 74P Uniform Civil Procedure Rules 2005 r 42.1 Cases Cited: Bahamad v Wong [2020] NSWSC 991 Boensch v Pascoe (2019) 94 ALJR 112; [2019] HCA 49 Hamod v State of New South Wales [2011] NSWCA 375 Sinclair v Hope Investments Pty Ltd [1982] 2 NSWLR 870 Vink v Tuckwell (No 3 ) (2008) 67 ACSR 547; [2008] VSC 316 Category: Costs Parties: Business Finance Pty Ltd (Receiver and Manager Appointed) (Plaintiffs) John Mudge (First Defendant) Registrar-General of NSW (Second Defendant) Representation: Counsel: Mr S Ipp (Plaintiffs)