Hancock v Rinehart (Lump sum costs) [2015] NSWSC 1640

Supreme Court New South Wales

Medium Neutral Citation: Hancock v Rinehart (Lump sum costs) [2015] NSWSC 1640 Hearing dates: 29 October 2015 Date of orders: 05 November 2015 Decision date: 05 November 2015 Jurisdiction: Equity Before: Brereton J Decision: Gross sum costs order made. Catchwords: COSTS – gross sum costs order – whether claimed costs include costs outside scope of indemnity costs order – whether impugned costs relate to application for removal of first defendant as trustee – whether claimed costs covered by other extant costs orders – whether general costs order of 9 October supersedes interlocutory costs orders – purpose of 9 October costs order – whether plaintiffs' solicitors paid more than their entitlement under costs agreement – construction of costs agreement – whether plaintiffs entitled to recover costs actually paid to solicitors irrespective of legal obligation – indemnity principle – relevance of date of costs order – where solicitors acted for plaintiffs and another party – where plaintiffs only liable for and paid proportion of costs –whether liability under retainers joint or several – where no express term in retainers – rebuttable presumption that costs to be borne separately where separate retainers executed – whether presumption rebutted – rights of contribution between plaintiffs – whether global reduction in costs should be made – where usual practice of court to apply discount to lump sum costs orders – where process of revising down costs has taken place through challenges to solicitor/client bills – whether amounts charged unreasonable – where no element of unreasonableness identified by defendants. Legislation Cited: (NSW) Civil Procedure Act 2005, s 101(4) (NSW) Uniform Civil Procedure Rules 2005, r 36.7, r 42.7 Cases Cited: ASIC; In the matter of Richstar Enterprises Pty Ltd v Carey (No 13) [2007] FCA 57 Australian Receivables Ltd v Tekitu Pty Ltd (subject to a deed of company arrangement) (deed administrators appointed) [2012] NSWSC 170 Beach Petroleum NL v Johnson (No 2) [1995] FCA 350; (1995) 57 FCR 119; 135 ALR 160 Bouras v Grandelis [2005] 65 NSWCA 463; (2005) 65 NSWLR 214 Burridge v Bellew (1875) 32 LT(NS) 807 Catto v Hampton Australia (in liq) (2008) 257 LSJS 245; [2008] SASC 231 Ellingsen v Det Skandinaviske Co [1919] 2 KB 567 Hancock & Anor v Rinehart & Ors [2013] NSWSC 1352 Harvey v Barton (No 4) [2015] NSWSC 809 Idoport Pty Limited v National Australia Bank Limited and Ors, Idoport Pty Limited v Donald Robert Argus [2007] NSWSC 23 In the matter of Aquaqueen International Pty Ltd [2015] NSWSC 500 KB Productions 2001 Pty Ltd (deregistered) v Kurt [2015] NSWSC 1415 Korner v H. Korner & Co Ltd [1951] Ch 10 Longreach Oil Ltd v Southern Cross Exploration NL (NSWSC, Young J, 9 March 1988, unreported) Motor Trades Association of Australia Superannuation Fund Pty Ltd v Rickus (No 6) [2010] FCA 383; (2010) 223 FCR 261 Norfeld v Jones (No 2) [2014] NSWSC 199 Palmer v Harris (1826) 1 Russ 155 R v Miller [1983] 3 All ER 186 Re Hope (1872) LR 7 Ch App 766 TNT Bulkships v Hopkins (1989) 98 FLR 352 Welker v Rinehart (No 2) [2011] NSWSC 1238 Welker & Ors v Rinehart & Anor (No 4) [2011] NSWSC 1636 Welker & Ors v Rinehart & Anor (No 5) [2012] NSWSC 45 Welker v Rinehart [2012] NSWSC 1637 Wende v Horwath (NSW) Pty Limited [2014] NSWCA 170; (2014) 86 NSWLR 674 Wentworth v Rogers [2002] NSWSC 709 Wentworth v Wentworth (NSWCA, Priestley, Clarke JJA and Grove AJA, 21 February 1996, unreported) Texts Cited: Cordery on Solicitors, 7th ed G E Dal Pont, Law of Costs, 3rd ed Category: Costs Parties: John Langley Hancock (first plaintiff) Bianca Hope Rinehart (second plaintiff) Gina Hoper Rinehart (first defendant) Representation: Counsel: C Withers w P Meagher (plaintiffs) B R McClintock w S A Lawrance (first defendant)