EIFY Systems Pty Ltd v 3D Safety Services Pty Ltd (No. 2) [2018] NSWSC 339

Supreme Court New South Wales

Medium Neutral Citation: EIFY Systems Pty Ltd v 3D Safety Services Pty Ltd (No. 2) [2018] NSWSC 339 Hearing dates: On the papers Date of orders: 16 March 2018 Decision date: 16 March 2018 Jurisdiction: Equity - Commercial List Before: McDougall J Decision: Plaintiff to pay defendants' costs in the gross sum of $1.2 million. Catchwords: COSTS – costs follow the event – where defendants successful on substantive proceedings – where plaintiff seeks to pay only part of defendants' costs – where plaintiff ran case in entirely inefficient and disorganised manner – where plaintiff's conduct so derelict as to enliven discretion to order costs on indemnity basis

COSTS – application for gross sum costs order – where such order sought in lieu of indemnity costs – where costs of assessment are disproportionately high – where plaintiff has demonstrated propensity to challenge extensively prior costs assessments – where no detriment to plaintiff by virtue of mathematical relation between the gross sum sought and the amount likely to be assessed – application granted

COSTS – application for third party costs order – whether principal of corporate plaintiff should be made joint and severally liable for costs where principal was person who directed litigation and stood to gain from it – insufficient reason for piercing corporate veil – application dismissed Legislation Cited: Civil Procedure Act 2005 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: EIFY Systems Pty Ltd v 3D Safety Services Pty Ltd [2017] NSWSC 1310 eInduct Systems Pty Ltd v 3D Safety Services Pty Ltd [2015] NSWCA 284 Oshlack v Richmond River Council (1998) 193 CLR 72 Category: Costs Parties: EIFY Systems Pty Ltd (Plaintiff) 3D Safety Services Pty Ltd (First Defendant) Anthony Ian Conacher (Second Defendant) Simon Paul Morrow (Third Defendant) 3D Safety Systems Pty Ltd (Fourth Defendant) Wishbone Consulting Pty Ltd (Fifth Defendant) Representation: Counsel: F Corsaro SC / S Baron-Levi (Plaintiff) K Andronos SC / S Keizer (Defendants)