BCEG International (Australia) Pty Ltd v Xiao (No 3) [2022] NSWSC 1221

Supreme Court New South Wales

Medium Neutral Citation: BCEG International (Australia) Pty Ltd v Xiao (No 3) [2022] NSWSC 1221 Hearing dates: On the papers Date of orders: 12 September 2022 Decision date: 12 September 2022 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Costs awarded on an indemnity basis from 1 September 2020. Catchwords: COSTS – indemnity costs – defendants assert right to privilege against self-incrimination and exposure to civil penalty – defendants put on bare Commercial List Response – defendants abandon claims to privilege two weeks before trial – hearing vacated – defendants put on defences that they could not have believed to be true – defendants serve evidence late – defendants provide discovery late, being 285,000 documents two months before new trial – gratuitous suggestions of professional misconduct by plaintiff's solicitors – defendants conduct proceedings in unnecessarily difficult and protracted fashion – whether defendants' conduct of proceedings warrants order for indemnity costs – Degmam Pty Ltd (in liq) v Wright (No 2) [1983] 2 NSWLR 354 applied – indemnity costs ordered on grounds of delinquency. LEGAL PRACTITIONERS – defendants' written submissions assert element of plaintiff's case so without merit that defendants will seek a personal costs order against plaintiff's solicitors if not withdrawn – explanation sought from defendants' senior counsel. Legislation Cited: Civil Procedure Act 2005 (NSW) Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Barrett Property Group Ltd v Metricon Homes Pty Ltd (No 2) [2007] FCA 1823 BCEG Australia v Xiao [2020] NSWSC 1234 BCEG Australia v Yu Xiao & Ors (No 2) [2020] NSWSC 1403 BCEG International (Australia) Pty Ltd v Xiao (No 2) [2022] NSWSC 1102 BCEG International (Australia) Pty Ltd v Xiao [2021] NSWSC 1027 BCEG International (Australia) Pty Ltd v Xiao [2021] NSWSC 1545 BCEG International (Australia) Pty Ltd v Xiao [2022] NSWSC 972 Berkeley Administration Inc v McClelland [1990] FSR 565 Calderbank v Calderbank [1976] Fam 93; [1975] 3 All ER 333 Chaina v Alvaro Homes Pty Ltd [2008] NSWCA 353 Colgate-Palmolive Company v Cussons Pty Ltd (1993) 46 FCR 225 Degmam Pty Ltd (in liq) v Wright (No 2) [1983] 2 NSWLR 354 Fang v Sun (No 2) [2014] NSWSC 1194 Gate v Sun Alliance Insurance Ltd (1995) 8 ANZ Ins Cas 61-251 Huang v Wei (No 3) [2022] NSWSC 662 In the matter of Indoor Climate Technologies Pty Ltd [2019] NSWSC 356 In the matter of Pacific Springs Pty Ltd [2021] NSWSC 66 Ivory v Telstra Corporation Ltd [2001] QSC 102 Leary v NSW Trustee & Guardian (No 2) [2017] NSWSC 1226 RinRim Pty Ltd v Deutsche Bank AG (Costs) [2016] NSWSC 1510 RinRim Pty Ltd v Deutsche Bank AG [2017] NSWCA 169 Sande v Medsara Pty Ltd (No 2) [2004] NSWSC 262 Southern Cross Mine Management Pty Ltd v Ensham Resources Pty Ltd (2006) 196 FLR 419 Stemson v AMP General Insurance (NZ) Ltd [2007] 1 NZLR 289; [2006] UKPC 30 Thors v Weekes (1989) 92 ALR 131 UBS AG v Tyne (2018) 265 CLR 77; [2018] HCA 45 Vance v Vance (1981) 128 DLR (3d) 109 WSA Online Limited v Arms (No 2) [2006] FCAFC 108 Texts Cited: Practice Note SC Eq 11 Dal Pont, G E, Law of Costs (4th ed, 2018 LexisNexis) Category: Costs Parties: BCEG International (Australia) Pty Ltd (Plaintiff) Yu Xiao (First Defendant) Yanying Chen (Second Defendant) Interlink Laboratory Pty Ltd (Third Defendant) Interlink Wagga Central Pty Ltd (Fourth Defendant) West Wyalong Marketplace Pty Ltd (Fifth Defendant) Representation: Counsel: Mr DL Williams SC / Mr ND Riordan (Plaintiff) Mr B Le Plastrier (Defendants)