In the Matter of Clarkes Pty Ltd [2019] NSWSC 1693

Supreme Court New South Wales

Medium Neutral Citation: In the Matter of Clarkes Pty Ltd [2019] NSWSC 1693 Hearing dates: 29 November 2019 Date of orders: 29 November 2019 Decision date: 29 November 2019 Jurisdiction: Equity Before: Slattery J Decision: Order for costs made in favour of the plaintiff against the first defendant. But costs recovery limited to $40,000. Catchwords: COSTS – offer of compromise – first defendant accepts an offer of compromise issued under Uniform Civil Procedure Rules 2005 ("UCPR"), r 42.13A in a very small amount (namely $10) – first defendant would ordinarily be liable under r 42.13A for the plaintiff's costs upon acceptance of the offer of compromise – whether the first defendant can invoke UCPR, r 42.34, and resist the making of any costs order, on the grounds that the amount of the judgment is less than $500,000 and the proceedings could have been brought in the District Court. Legislation Cited: Civil Procedure Act 2005, ss 60, 98(4)(c) District Court Act 1973, s 134(1)(b),(d),(e)(h) Justice Legislation Amendment Act (No 3) 2018 Uniform Civil Procedure Rules 2005, rr 42.13A, 42.34 Cases Cited: Commonwealth Bank of Australia v QBE Insurance (Australia) Ltd [2018] NSWSC 1440 Cator v Croydon Canal Co (1843) 4 Y & C Ex 593 Johnston v Johnston (2016) 14 ASTLR 123 McDonough v Owners of Strata Plan No 57504 (2014) 17 BPR 33,573 Category: Costs Parties: Plaintiff: Reginald Anthony Clarke (as assignee of Clarkes Pty Ltd (in liq) ACN 078 949 112) First Defendant: Stephen Robert Clarke Second Defendant: Clarkes Pty Ltd (in liq) ACN 078 949 112 Representation: Counsel: Plaintiff: R.D. Marshall SC First Defendant: A. Byrne