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[2007] NSWSC 931
Supreme Court of NSW
2007-07-30
Windeyer J
Original judgment source is linked above.
CITATION : Karwala v Skrzypczak Re Estate of Ratajczak [2007] NSWSC 931
JURISDICTION : Equity Division Probate List
DECISION : Order respondent indemnify the applicant against the costs payable by her to the extent of $9,000.
CATCHWORDS : COSTS - unnecessary costs - claim for costs order against barrister to indemnify successful party against her own costs - matters for consideration - LEGAL PRACTITIONERS - incompetence of counsel - claim that barrister pay part of costs - Civil Procedure Act 2005 s99(c)
Bagley v Pinebelt Pty Limited [2000] NSWSC 655 Briginshaw v Briginshaw (1938) 60 CLR 336 Harley v McDonald [1999] 3 NZLR 545 CASES CITED : Ideal Waterproofing Pty Limited v Buildcorp Australia Pty Limited & Ors [2006] NSWSC 155 In Re a Barrister (Wasted Costs Order) (No 1 of 1991) [1993] QB 293 Leicester v Walton (22 November 1996, NSW Court of Appeal) Ridehalgh v Horsefield and other cases [1994] ch 205
Maria Karwala (Plaintiff) PARTIES : Jadwiga Skrzypczak (Defendant/Applicant on notice of motion) Ignatius Nwafor (Respondent to notice of motion)
COUNSEL : Mr S Galitsky (Applicant on notice of motion) Mr R J Weber SC (Respondent to notice of motion)
SOLICITORS : G A Kinsey (Applicant on notice of motion) Moray & Agnew (Respondent to notice of motion)
100898/03 MARIA KARWALA V JADWIGA SKRZYPCZAK IN THE ESTATE OF WLADYSLAW RATAJCZAK
JUDGMENT on notice of motion for costs 1 By notice of motion filed on 8 May 2006, the defendant/cross-claimant, Mrs Skrzypczak, seeks an order under s99(2)(c) of the Civil Procedure Act 2005 that Mr Asuzu, the barrister who appeared for the plaintiff, Mrs Karwala, indemnify the defendant against part of her costs incurred and payable by her to her solicitors. The hearing was delayed pending an appeal to the Court of Appeal. Section 99 is as follows: 99 Liability of legal practitioner for unnecessary costs (cf Act No 52 1970, section 76C; SCR Part 52A, rules 43 and 43A) (1) This section applies if it appears to the court that costs have been incurred: (a) by the serious neglect, serious incompetence or serious misconduct of a legal practitioner, or (b) improperly, or without reasonable cause, in circumstances for which a legal practitioner is responsible.
(2) After giving the legal practitioner a reasonable opportunity to be heard, the court may do any one or more of the following: (a) it may, by order, disallow the whole or any part of the costs in the proceedings: (i) in the case of a barrister, as between the barrister and the instructing solicitor, or as between the barrister and the client, as the case requires, or (ii) in the case of a solicitor, as between the solicitor and the client, (b) it may, by order, direct the legal practitioner: (i) in the case of a barrister, to pay to the instructing solicitor or client, or both, the whole or any part of any costs that the instructing solicitor or client, or both, have been ordered to pay to any other person, whether or not the solicitor or client has paid those costs, or (ii) in the case of a solicitor, to pay to the client the whole or any part of any costs that the client has been ordered to pay to any other person, whether or not the client has paid those costs, (c) it may, by order, direct the legal practitioner to indemnify any party (other than the client) against costs payable by that party.
(3) Before making such an order, the court may refer the matter to a costs assessor (within the meaning of Part 3.2 of the Legal Profession Act 2004 ) for inquiry and report.
(4) The court may direct that notice of any proceedings or order under this section with respect to a legal practitioner be given: (a) in the case of a barrister, to the instructing solicitor or client, or both, as the court may direct, or (b) in the case of a solicitor, to the client.
(5) The court may give ancillary directions to give full effect to an order under this section, including directions to a legal practitioner to provide a bill of costs in assessable form: (a) to the court, or (b) to a party to the proceedings, or (c) in the case of a barrister, to the instructing solicitor or client, or both, or (d) in the case of a solicitor, to the client.
(6) A party's legal practitioner is not entitled to demand, recover or accept: (a) in the case of a barrister, from the instructing solicitor or client, or (b) in the case of a solicitor, from the client,
any part of the amount for which the legal practitioner is directed by the court to indemnify any party pursuant to an order referred to in subsection (2) (c).
(7) In this section, client includes former client. 2 The action was a contested Probate action. It was heard over 10 days. The contest was between a will made in 1961 propounded by the plaintiff and wills made in 1992 and 1995 propounded by the defendant/cross-claimant. I found for a will in the Polish language made on 24 November 1995. It is not necessary to set out the facts, all of which are included in my judgment of 29 March 2006. 3 The successful defendant/cross-claimant seeks an order that counsel for the plaintiff personally pay the costs incurred by the defendant, or the costs beyond a four day hearing or such portion of the costs of the proceedings as the court should determine. 4 The barrister was represented on the hearing of the motion by Mr Weber SC, who assisted the court by setting out clearly the four grounds which he relied upon in opposing the application. It is convenient to set the four grounds out here and to then deal with them in order. I make it clear that this is not because the onus is on the barrister, which it is not, but as a convenient way of dealing with the grounds 1, 2 and 3. The grounds are as follows:
ASUZU: It will be tendered. I believe it is already in the Court's documents.
HIS HONOUR: There is nothing before me in evidence. I do not have any Court documents. Any documents that have been subpoenaed are not in evidence. I do not look at bundles of documents that have been subpoenaed. There could be anything there. I will not look at them unless they are placed in evidence. There is nothing in evidence yet. None of these reports are in evidence. If you want to get them in, you will have to tender them.
ASUZU: Yes. (To doctor) I will give you another copy. I tender this letter.
At page 90, the following appears during the evidence of Dr Haber: HIS HONOUR: … Mr Asuzu, I propose to adjourn for ten minutes. You are to get the hospital records you want to put in. I assume there will be no objection to their being tendered. If you want to ask the doctor some sensible questions about them, you can do so. We cannot proceed like this. This is appalling. I do not propose to allow it to continue. I propose to adjourn while it happens.
SHORT ADJOURNMENT 21 A vast amount of time was wasted in unsuccessful attempts to put into evidence medical reports which had not been served and which did not comply with the expert evidence rules. At transcript page 135, dealing with an attempt to get into evidence the report of Dr Akkerman, the following appears: HIS HONOUR: At the present moment, I do not propose to admit it. It may be, if Dr Akkerman is called, you may be able to adduce some evidence from him. The report, on no basis, complies with the rules as to expert evidence. It does not separate the assumptions from anything else. It does not bring about conclusions from assumed facts or known facts. It is quite impossible to have it admitted at this stage. At this stage I reject it. I am not stopping you calling the doctor. ASUZU: Your Honour has to be very mindful of the mode of your rejection of vital medical evidence. My friend had said that Dr Akkerman's report is not a consultative-generated report. Such a consultative-generated report, you are also refusing, so I really do not know whether anybody is qualified in this State to ever diagnose as someone having dementia. This case is about medical evidence and you seem to be not admitting anything. I have problem with that. HIS HONOUR: As far as I know, I am admitting everything that is admissible, and some material which is of great doubt as to admissibility. I am not excluding anything that is admissible. At this stage this report is not admissible as an expert report, and I propose to reject it.
I am still giving you the opportunity of calling that doctor.
ASUZU: You might as well refuse Dr Akkerman from being called, but, nonetheless, that is the evidence that we are relying on. 22 A Mr Sadjak was cross-examined on an affidavit obviously prepared by Mr Kinsey, the solicitor for the defendant, and at page 184 the following appears: HIS HONOUR: I do not wish to debate it with you. You continue, if you like.
ASUZU: Q. Can you tell the Court who prepared the document for you? A. Is not for me. I didn't know it was for me specifically. No. The content of this - I don't even--
Q. Who sent that document to you to sign? A. I don't know.
Q. It came from heaven? A. I don't know.
HIS HONOUR: It might sound humorous, but it is quite unfair.
ASUZU: The witness has answered questions about things that happened 11 years ago, and this one that was done in 2004, there is a simple answer. Not too far away.
ASUZU: Does the Court accept that the document was signed out of the sky? Then perhaps I stop here. It is not a difficult question. It is about the veracity of the account that he has given to the Court.
HIS HONOUR: You can keep asking it as long as you wish. It is perfectly obvious it was prepared by Mr Kinsey. WITNESS: Would you come closer?
HIS HONOUR: Mr Asuzu, please sit down. I will direct you to withdraw from the Court any minute if you do not behave properly, as you should.
WITNESS: My GP has treated me with my ears, so what you are talking is not coming straight to me.
HIS HONOUR: Exactly. Mr Asuzu, if you continue to behave like that, your right to appear in this case will be withdrawn.
(To witness) Thank you very much for your attendance. You are free to go, if you wish.
WITNESS: Thank you very much, your Honour. Sorry. 23 There were problems with the evidence of Dr Akkerman, whose report had been rejected. I said that he would be allowed to give oral evidence if the documents upon which he was to be questioned were put into some order with a copy being given to the other side. I had been asking for a coherent bundle of documents for most of the day. At page 186 and immediately thereafter the following passage appears: Mr Asuzu, last night it was suggested that you should get together, in a bundle, those hospital notes, doctors' notes and other medical matters, which you thought were relevant and wished to put before the Court. It may be then that Dr Akkerman can be taken to those and, if qualified, give a relevant opinion, presumably on capacity. We cannot just have him here unless you are ready to do that. Are you ready to do that?
ASUZU: Yes, we are ready to do that, but every objection that my friend has put before Court you have been very willing to accept it.
It worries me at this stage what is the grand design. Your Honour is not prepared to accept the treating doctor. You are not prepared to accept opinion of a psychiatrist, who has looked at the Court papers. At this moment I am very, very afraid of what is the evidence the Court is prepared to look at. Is it the technical evidence or the real evidence of the mental state of the deceased at the time?
I am particularly not very, very happy with the way you have disallowed all best evidence in this case, including the medical evidence. They were not designed with the testator's property in mind. They were designed at the time when he suffered the disease.
Now, the doctors that we will be calling, we made it point clear a month or two before this case. Those doctors are now being called, and they are being stopped from going into the witness box, or their medical opinion and reports are being rejected all at the time.
It is not fair to my client and to the progress of this very case. Why are the facts of this case being systemically removed from it? I do not think that my friend has the audacity to change the facts of this case, so I am not sure there is any law that allows or disallows such technical evidence from going into being heard.
First, the treating doctor. It is said her report is here and there. Well, her report might be here and there, but the important thing is the medical condition of the testator at the time it happened. So, I am going to prepare the medical evidence that we have, and then give it to my friend, and then, if it is not allowed - my intention is to tell the Court that Dr Akkerman is here. We notified to the Court that he will be called. We produced a report. If he was not a treating doctor - we have Dr Lukaszewicz, who is the treating doctor. Again, it is between the opinion, at the time when they did it, and what was put in their report.
HIS HONOUR: I am not sure what I am supposed to do about that. This case has been run on the basis that either the primary evidence would be put on affidavit or be in expert reports which were admissible. If reports are tendered which are not admissible the Court cannot do anything about it. The Court cannot allow inadmissible evidence to be put before it. That is why Dr Akkerman's report is rejected.
So far as Dr Lukaszewicz is concerned, there will be, as I understand it, far fewer problems. While her reports have been rejected, mostly because a lot of them is clearly inadmissible in this case, I am expecting that she will be called. Her affidavit is on the file and has been read. Basically everything in it has been rejected, but the affidavit has remained there, on the basis that she will be called. Because she was the treating doctor, and her notes are here, she will be able to give admissible evidence.
So far as some suggestion that this case is being run to admit technical evidence and not the important evidence, all the Court is wishing to do is to get the relevant evidence in. Its duty is to keep inadmissible evidence out. That is what I am trying to do. There is a lot of evidence so far in which, on a technical basis, might not have been allowed. However, it has been allowed.
So far as Dr Akkerman is concerned, we do not have any idea what this doctor is going to say because his report has been excluded. He will not be able to give any evidence of assistance to the Court in a reasonably comprehensive way, in a reasonable time, unless there has been prepared a bundle of documents which he can look at and will be asked, if he can, to give his expert opinion on testamentary capacity as a result of looking at that material. He has never seen the deceased. He can only give an expert opinion by looking at medical documents. He can only do that if there is a bundle of those documents which it is intended to ask him to look at. If there is a bundle of documents, that bundle can be tendered, probably without any real objection, and we can get on with the case.
Last night the suggestion was made, which I adopted, that you should produce that bundle of documents and have it ready for today. I understand that has not yet been done. If it is done, then Dr Akkerman can probably be called.
ASUZU: The important thing is the fact that we provided his name long before. Those documents, those bundles, were sent to him to look at it his own leisure. It is after looking at those bundles that he prepared a report, which, as an expert in the field of psychiatry, he has prepared to put before Court. So, if we have to do afresh what we had done in the past, we are prepared to do that, but, nonetheless, he did not produce a report from his own ideas of what the report would look like. He prepared a report from that bundle that was sent to him and now is here to defend it.
HIS HONOUR: I do not wish to keep repeating it. If you have the documents, in a convenient way, which were sent to him, we can probably proceed.
ASUZU: I have the bundle, which is from Bankstown Health Services and Bankstown Hospital. I have the South Western Sydney Area Health Services.
HIS HONOUR: A lot of that has no relevance whatsoever to this, I imagine. If you want to ask this doctor his opinion, based on particular documents, they will have to be identified. There will be page after page of nursing notes, which will be quite irrelevant to this matter. If you want to, you can give them to the doctor now. He could put a flag on the ones which he says are relevant to his opinion. Then, if you wish, you can tender them, and then he can give some evidence.
But, in this matter, it is not a question of complaint; it is a question of reasonable running of a case. Reasonable running of a case is that expert evidence be given, by way of a report, as to opinion, and then those experts be made available for cross-examination. When a report is inadmissible, there is no discretion for the Court to allow any evidence to continue.
I do not wish to say anything more about your other comments, which are quite inappropriate.
If you wish to do that, you can. The report will not be admitted. 24 At page 241 and on many other occasions I again drew attention to the pleadings. 25 On 20 February Mr Asuzu sought leave to file an amended defence to the cross-claim, raising some extraordinary matters of non-delegation of will-making power. A lot of time was spent discussing this matter and in the end it was rejected. There is some further discussion about the pleadings on page 311 of the transcript which I will not set out. 26 At page 425 it will be seen, in dealing with the evidence of Anna Andrysiak, that the barrister once again endeavoured to get in oral evidence, which evidence had already been given on affidavit. The following passage appears on that page: HIS HONOUR: I reject that question too. If you are wanting to ask this witness to give the evidence in paragraph 6, it is already there. Is that what you are interested in? Have you looked at paragraph 6 or not?
ASUZU: Yes, I have. I am trying to avoid going to paragraph 6 per se and for the witness to say in her own words, analyse to the court, her relationship with this defendant.
HIS HONOUR: She said she knew her for 10 years. She said she met her in church. She said in 1995 she was a dinner guest at her house and after that she was being told about this old man. I don't want her to repeat all that. Have you got some relevant questions? You shouldn't be allowed to ask any, but if you have got any--
ASUZU: I don't know why you don't want her to repeat.
HIS HONOUR: I have told you at least three times I don't intend to have repeated the evidence which has been given in chief. The parties in this case were required to put on their primary evidence by affidavit. That is what has been done. The reason for that is so we don't waste time having it said orally and I don't intend to allow it.
ASUZU: But for the record, the litigation of proceedings has been recorded and for the record--
HIS HONOUR: This affidavit, and everything that is written in it, which has been admitted into evidence, is part of the record. It doesn't have to go on to the transcript. Surely you know that. 27 I regret to say that so far as inadequacy of preparation and incompetence in advocacy is concerned this was the worst case which has come before me since I was appointed to the court. Had the action been competently handled there is no doubt that it would not have taken so long. There is no doubt whatsoever that increased costs were incurred by the defendant as a result of the increased time of hearing which, had the matter been handled properly, would not have been needed. 28 As against all of this it is necessary to bear in mind the fact that it had become apparent to me at various directions hearings before Mr Asuzu was instructed, that the plaintiff, Mrs Karwala, was a very difficult litigant. I have no doubt that she was also a difficult client in that she would have made demands on any legal representative as to adducing evidence and what should be put before the court, which might have been difficult to put aside. It was also perfectly clear that she was being assisted to a great extent by a lady who acted as interpreter for her whose forthright approach would probably have made life difficult for any barrister or solicitor. Nevertheless it is the duty of counsel to present a case in a reasonably competent way, the court, of course, making allowances for the difficulties which are often involved with particular clients. Even taking all that into account it is perfectly clear that the barrister was quite incompetent in his conduct of this particular piece of litigation and that his incompetence led to the costs being increased. In saying that I do not place much significance on the fact that the original estimate of the case was for a four day hearing. Had all the witnesses been able to speak English, had the parties been reasonable, and had the affidavit evidence been in reasonable form, it is possible that with competent representation the hearing could have been concluded in four days. However, for my own part I take little notice of estimates because some judges hear cases more quickly than others and one does not always know the difficulties that particular clients will bring forward. In spite of that, there can be no doubt whatever that the case should not have lasted longer than eight days and probably not longer than six. 29 At one stage during the hearing or during some other application, I had formed the view that the barrister was appearing pro bono for Mrs Karwala. I thus said to his counsel on the hearing of this motion that that had been my understanding and I had expected that there would be some evidence to that effect. Mr Weber SC said that he had no instructions about that and as the barrister was present in court I assume that my understanding was incorrect. The barrister gave no evidence. 30 I finally take into account the fact that the hearing could possibly have been more difficult had Mr Asuzu not appeared. That is a matter which is difficult to determine because had there been no representation, there would not have been nearly so much room for argument about unarguable matters. The point is that had the matter been handled competently it would not have taken ten days and because it was not handled competently, it did. In my view it took two days longer than it should have through serious incompetence. Finally I consider that in the circumstances of this case it is proper and just to make an order against the barrister. Some might consider that some of his behaviour amounted to serious misconduct, but I consider that behaviour occurred through serious incompetence rather than intentional misconduct. What should be the result? 31 In my view it would be a quite unreasonable expense to require the costs of the full hearing be assessed and then order the barrister to pay some part of those costs. It is fairer to fix an amount. I consider that an order should be made that the barrister indemnify the defendant/cross-claimant against costs incurred by her in the amount of $9,000, which I estimate to be the approximate costs of two days' hearing.
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.
Karwala
Skrzypczak Re Estate of Ratajczak