Food Channel Network Pty Ltd v Television Food Network GP

REASONS FOR JUDGMENT 1 The applicant, Food Channel Network Pty Ltd (FCN), seeks an order for the repayment of $8,039.90 paid by it to Television Food Network GP (TFN) in discharge of an order for costs which order was set aside on appeal to this Court by orders made on 2 June 2010. FCN argues that the orders of this Court made on 2 June 2010 should have included an order for the repayment of the $8,039.90 and that the omission of such an order may, and should, be corrected pursuant to O35 r 7(3) of the Federal Court Rules (the slip rule). 2 It is not necessary to determine whether orders sought by FCN may be made under the slip rule. That is because, even if the order sought by FCN is one which might be made under the slip rule, TFN is entitled to payment by FCN of $16,415.95 pursuant to a certificate of taxation in another matter in the Federal Court. TFN now accepts that FCN is entitled to reduce the amount payable to it by FCN under the certificate of taxation by the sum of $8,039.90. 3 In these circumstances, whether or not TFN is strictly entitled to set the sum of $8,039.90 off against FCN's debt of $16,415.95, the Court's discretion is broad enough to recognise that substantial justice is best done by leaving FCN indebted to TFN in the sum of $8,376.05, rather than to compel TFN to pursue FCN for the recovery amount of $16,415.95. 4 FCN's application to this Court should be dismissed. 5 The circumstances which led to FCN's application to this Court reflect a level of unreasonableness on each side. FCN should have recognised that its claim against TFN was exceeded by its debt to TFN and TFN could and should have recognised FCN's claim to set off more promptly. In order to mark its disapproval of the unreasonableness of the parties, the Court is not disposed to make any order in relation to the costs of the application in favour of either party. I certify that the preceding five (5) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Keane CJ, Stone and Jagot JJ.