Tonna v Mendonca (No 2) [2020] NSWSC 306

Supreme Court New South Wales

Medium Neutral Citation: Tonna v Mendonca (No 2) [2020] NSWSC 306 Hearing dates: On the papers Date of orders: 25 March 2020 Decision date: 25 March 2020 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Declare that the first defendant holds the legal title to the property referred to in these proceedings as the Galston Property on a resulting trust for herself and the plaintiffs in the following proportions that reflect their respective contributions to the purchase price for the Galston Property: 28.87% as to the plaintiffs and 71.13% as to Dr Mendonca. 2. Order the first defendant to execute and provide to the plaintiffs within 28 days of the date of these orders a transfer in registrable form in respect of the Galston Property to record the plaintiffs' beneficial interest in the Galston Property as declared above. 3. Declare that the plaintiffs' proportionate share of the contributions paid by the first defendant in respect of the Galston Property and the first defendant's proportionate share of the contributions paid by the plaintiffs be set off against each other. 4. Subject to order 5 below, order that the amount payable after the set-off provided for in order 3 above, be paid, with interest at court rates, on completion of any sale of the Galston Property. 5. In the event that agreement is not reached within 3 months between the plaintiffs and the first defendant for the sale of the Galston Property (to take place within six months or such other period as the parties may agree) then order that any amount payable after the set-off provided for in order 3 be paid on the expiration of 3 months from the date of these orders. 6. Direct the parties to seek to reach agreement as to the manner in which account should be made by the first defendant to reflect the change to the mortgage repayments when the first defendant increased the loan facility in respect of the property and, failing such agreement within 3 months, order that the matter be referred to an independent accounting expert (at the parties' joint cost) (to be agreed between the parties or otherwise nominated by the Court) for determination as to the amount of mortgage repayments referable to a loan in the lesser sum (i.e., without the increase in the facility) over the relevant period at the interest rate that was payable at the time of the original loan facility (with interest rate changes referable to the terms of that facility as if the facility amount had not increased), with a view to making orders for any adjustment of the amounts otherwise provided for under order 3 as a result of that determination. 7. Liberty to the parties to apply on 3 business days' notice for orders in relation to the implementation or working out of the above orders. 8. Order that Dr Mendonca pay the costs of Mr and Mrs Tonna of the Tonna Proceedings and of the Mendonca Proceedings, on the ordinary basis. 9. Order that Mr and Mrs Tonna pay the costs of Mr Mendonca and Business Services of the Tonna Proceedings, on the ordinary basis. Catchwords: COSTS — Exceptions to general rule that costs follow the event — Offers of compromise/Calderbank offers —Orders when proceedings involve multiple parties — Bullock and Sanderson orders Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56, 98 Uniform Civil Procedure Rules 2005 (NSW), rr 20.26, 42.1, 42.13-42.17 Cases Cited: Alltrans Express Ltd v CVA Holdings Ltd [1984] 1 WLR 394; 1 All ER 685 Amit Laundry Pty Ltd v Jain (No 2) [2017] NSWSC 1603 Amit Laundry Pty Ltd v Jain [2017] NSWSC 1495 Anderson Group Pty Ltd v Tynan Motors Pty Ltd (No 2) (2006) 67 NSWLR 706; [2006] NSWCA 120 Baulderstone Hornibrook Engineering Pty Limited v Gordian Runoff Limited (No 2) [2009] NSWCA 12 Bennette v Cohen (No 2) [2009] NSWCA 162 Bostik Australia Pty Limited v Liddiard (No 2) [2009] NSWCA 304 Bowen Investments Pty Ltd v Tabcorp Holdings Ltd (No 2) [2008] FCAFC 107 Bullock v London General Omnibus Co [1907] 1 KB 264 Calderbank v Calderbank [1975] 3 WLR 586; 3 All ER 333 Commonwealth of Australia v Gretton [2008] NSWCA 117 Corbett Court Pty Limited v Quasar Constructions (NSW) Pty Limited [2008] NSWSC 1423 Council of the City of Liverpool v Turano (No 2) [2009] NSWCA 176 Cretazzo v Lombardi (1975) 13 SASR 4 Dodds Family Investments Pty Ltd (formerly Solar Tint Pty Ltd) v Lane Industries Pty Ltd (1993) 26 IPR 261 Elite Protective Personnel Pty Ltd v Salmon (No 2) [2007] NSWCA 373 Fabre v Lui (No 2) [2015] NSWCA 312 Gerling Australia Insurance Co Ltd (Costs) [2005] NSWSC 1111 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 75 Hancock v Arnold (No 2) [2009] NSWCA 19 Herning v GWS Machinery Pty Ltd (No 2) [2005] NSWCA 375 Hobartville Stud Pty Ltd v Union Insurance Co Ltd (1991) 25 NSWLR 358 Hughes v Western Australian Cricket Association (1986) ATPR 40-748 Jamal v Secretary Department of Health (1988) 14 NSWLR 252 James v Surf Road Nominees Pty Limited (No 2) [2005] NSWCA 296 Johnson's Tyne Foundry Pty Ltd v Maffra Corp (1948) 77 CLR 544; [1948] HCA 46 Lackersteen v Jones (No 2) (1988) 93 FLR 442; [1988] NTSC 72 Lavender View v North Sydney Council (No 2) [1999] NSWSC 775 Leallee v The Commissioner of the NSW Department of Corrective Services [2009] NSWSC 518 Leichhardt Municipal Council v Green [2004] NSWCA 341 Milne v Attorney-General (Tas) (1956) 95 CLR 460 NRMA Ltd v Morgan (No 3) [1999] NSWSC 768 Oshlack v Richmond River Council (1998) 193 CLR 72 Pacific General Securities Ltd v Soliman & Sons Pty Ltd (Costs) [2006] NSWSC 724 Permanent Trustee Co Ltd v Keogh [1999] NSWSC 883 Regency Media Pty Ltd v AAV Australia Pty Ltd [2009] NSWCA 368 Roache v News Group Newspapers Ltd [1998] EMLR 161 Roads and Traffic Authority of NSW v Palmer (No 2) [2005] NSWCA 140 Robb Evans of Robb Evans & Associates v European Bank Ltd (No 2) [2009] NSWCA 170 Sabah Yazgi v Permanent Custodians Ltd (No 2) [2007] NSWCA 306 Sahab Holdings Pty Ltd v Registrar-General (No 3) [2010] NSWSC 403 Sanderson v Blyth Theatre Co [1903] 2 KB 533 Shellharbour City Council v Johnson (No 2) (2006) 67 NSWLR 308 Short v Crawley (No 40) [2008] NSWSC 1302 Shorten v David Hurst Constructions Pty Limited [2008] NSWSC 609 Stena Rederi Aktiebolag v Austal Ships Sales Pty Ltd [2007] FCA 1141 Stevedoring Industry Finance Committee v Gibson (2000) 20 NSWCCR 417; [2000] NSWCA 179 Sved v Council of the Municipality of Woollahra (1998) NSW Conv R 55-842 Tickell v Trifleska Pty Ltd (1990) 25 NSWLR 353 Tomanovic v Global Mortgage Equity Corporation Pty Ltd (No 2) [2011] NSWCA 256 Tonna v Mendonca [2019] NSWSC 1849 Trade Practices Commission v Nicholas Enterprises Pty Ltd (No 3) (1979) 42 FLR 213 Uniline Australia Ltd v Sbriggs Pty Ltd (No 2) (2009) FCR 136; [2009] FCA 920 Uniting Church in Australia Property Trust (NSW) t/as Northhaven Retirement Village v Takacs (No 2) [2008] NSWCA 172 Waterman v Gerling Australia Insurance Co Ltd (Costs) [2005] NSWSC 1111 Waters v PC Henderson (Aust) Pty Ltd [1994] NSWCA 338 Willett v Thomas [2012] NSWCA 97 Windsurfing International Incorporated v Petit (1987) AIPC 90-441 Category: Consequential orders (other than Costs) Parties: 2016/00182075 Mark Julian Tonna (First Plaintiff) Lorraine Mary Tonna (Second Plaintiff) Renuka Maria Mendonca (First Defendant) Gerard Mendonca (Second Defendant) Business Services (NSW) Pty Ltd (Third Defendant)