Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (No 3) [2010] NSWSC 1139

New South Wales Supreme Court

CITATION : Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (No 3) [2010] NSWSC 1139

HEARING DATE(S) : 02.02.10, 03.02.10, 04.02.10, 22.02.10, 23.02.10, 01.03.10, 12.07.10 final written submissions received 30.08.10

JUDGMENT DATE : 7 October 2010

JUDGMENT OF : Nicholas J

DECISION : Par 116

CATCHWORDS : COSTS – indemnity costs – contractual entitlement to indemnity costs – whether assessment of defendant's costs on an indemnity basis more favourable than entitlement under contractual indemnity – discretion as to costs – general principles – Legal Profession Act 2004 s 364 – UCPR 42.5(b). - COSTS – indemnity costs – whether pursuit of groundless allegations without reasonable prospects of success, which prolonged the trial, was so delinquent as to warrant indemnity costs – discretion – general principles - COSTS – payment of costs by non-parties – circumstances in which non-parties may be ordered to pay costs of proceedings – whether repeal of UCPR 42.3 operated retrospectively – whether involvement in plaintiff's conduct of the proceedings justified award of costs against a non-party – general principles – Civil Procedure Act 2005 s 98

Civil Procedure Act 2005 LEGISLATION CITED : Interpretation Act 1987 Legal Profession Act 2004 Uniform Civil Procedure Rules 2005

CATEGORY : Principal judgment

Abigroup Ltd v Sandtara Pty Ltd [2002] NSWCA 45 Al-Shennag v Statewide Roads Ltd [2008] NSWCA 300 Arklow Investments Ltd v MacLean (High Court of New Zealand, Unreported, 19 May 2000) Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd (No 2) [2009] NSWCA 12 Bouras v Grandelis [2005] NSWCA 463; (2005) 65 NSWLR 214 Briggs v James Hardy & Co Pty Ltd (1989) 16 NSWLR 549 Chaina v Alvaro Homes Pty Ltd [2008] NSWCA 353 Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225 Dymocks Franchise Systems (NSW) Pty Ltd v Todd (No 2) [2004] UKPC 39 EMI Records Ltd v Ian Cameron Wallace Ltd [1983] Ch 59 Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Ltd (1988) 81 ALR 397 FPM Constructions Pty Ltd v Council of the City of Blue Mountains [2005] NSWCA 340 CASES CITED : Gomba Holdings (UK) Ltd v Minories Finance Ltd (No 2) [1993] Ch 171 Habib v Nationwide News Pty Ltd [2006] NSWCA 14; (2006) 65 NSWLR 264 Jackman v Dandenong Sewerage Authority (No 2) (1967) 20 LGRA 413 J-Corp Pty Ltd v Australian Builders Labourers Federated Union of Workers (No 2) (1993) 46 IR 301 Jeffery & Katauskas Pty Ltd v SST Consulting Pty Ltd [2009] HCA 43; (2009) 239 CLR 75 Knight v FP Special Assets Ltd (1992) 174 CLR 178 Kumagai Australia Finance v Avarton Ltd (Supreme Court of New South Wales, Bryson J, 7 June 1991, unreported) Kyabram Property Investments Pty Ltd v Murray [2005] NSWCA 87 Lahoud v Lahoud [2006] NSWSC 126 Maxwell v Murphy (1957) 96 CLR 261 Metalloy Supplies Ltd v MA (UK) Ltd [1997] 1 WLR 1613 Rodway v The Queen [1990] HCA 19; (1990) 169 CLR 515 Sykes v Queensland Gas Co [2009] QCA 163 Vestris v Cashman (1998) 72 SASR 449