Shazbot Pty Ltd v Warner Capital Pty Ltd (No 6) [2024] NSWSC 81

Supreme Court New South Wales

Medium Neutral Citation: Shazbot Pty Ltd v Warner Capital Pty Ltd (No 6) [2024] NSWSC 81 Hearing dates: Written submissions on costs ending 25 October 2023; further oral submissions 17 November, 1 December 2023 Date of orders: 9 February 2024 Decision date: 09 February 2024 Jurisdiction: Equity Before: Parker J Decision: See [133] Catchwords: PARTNERSHIP – accounts – third parties ordered to account to partnership firm jointly and severally with partners – form of orders – no set-off between third parties' liabilities to account and distributions to partners PARTNERSHIP – winding-up – directions – lodgement of future tax returns – obtaining of advice on lodgement of past tax returns COSTS – multiple claims involving multiple parties and having mixed success – application of rule that costs follow the event – order in favour of successful plaintiff on partnership claims and subsequent account to quantify defendant's liability – order against unsuccessful plaintiff for costs solely referable to unsuccessful non-partnership claim – indemnity costs – informal offer not distinguishing between plaintiffs – indemnity costs refused Legislation Cited: Nil Cases Cited: Akierman Holdings Pty Limited v Akerman (No 3); In the matter of Akierman Holdings Pty Limited (No 2) [2021] NSWSC 869 Doppstadt Australia Pty Ltd v Lovick & Son Pty Ltd [2014] NSWCA 158 Global Consulting Services Pty Ltd v Gresham Property Investments Ltd (No 3) [2019] NSWCA 208 Harris v Harris [2013] NSWSC 1147 Lahoud v Lahoud [2006] NSWSC 126 Leda Pty Ltd v Weerden (No 2) [2007] NSWCA 283 Meekin v Gersbach (Supreme Court of New South Wales, 6 August 1997, unrep) Murray v Feros [2019] NSWSC 260 Robb Evans & Associates v European Bank Ltd (No 2) [2009] NSWCA 170 Shazbot Pty Ltd v Warner Capital Pty Ltd [2018] NSWSC 1645 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 2) [2019] NSWSC 1114 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 3) [2023] NSWSC 527 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 4) [2023] NSWSC 1001 Shazbot Pty Ltd v Warner Capital Pty Ltd (No 5) [2023] NSWSC 1322 Southern Oil Refining Pty Ltd v Hydrodec Australia Pty Ltd (No 2) [2021] NSWSC 336 Warner Capital Pty Ltd v Shazbot Pty Ltd [2020] NSWCA 121 Waters v P C Henderson (Aust) Pty Ltd [1994] NSWCA 338 Texts Cited: JD Heydon, MJ Leeming and PG Turner, Meagher, Gummow and Lehane's Equity: Doctrines and Remedies (5th ed, 2015 LexisNexis) R I'Anson Banks, Lindley & Banks on Partnership (16th ed, 1990, Sweet & Maxwell R I'Anson Banks, Lindley & Banks on Partnership (21st ed, 2022, Thomson Reuters Category: Costs Parties: Shazbot Pty Limited (First Plaintiff) Steven Barry Kugel (Second Plaintiff) Warner Capital Pty Limited (First Defendant) Anthony John Warner (Second Defendant) Clarence Street Partners Pty Limited (Third Defendant) Debtfree Pty Limited (Fourth Defendant) Representation: Counsel: E Finnane (Plaintiffs) C Wood SC (written submissions on costs); J Anderson (17 November and 1 December) (Defendants)