© 2026 Zoe. All rights reserved.
Zoe is a legal information platform. Always consult the Federal Register of Legislation for authoritative text.
[1999] VSC 309
Supreme Court of Victoria
1999-08-30
Smith, J.
Original judgment source is linked above.
Westcoast Clothing Company Pty Ltd v Freehill & Ors
Interest - relevant considerations Costs - solicitor/client - surcharge - unreasonable conduct of defence and contribution proceedings.
(a) from the date of the writ, 29 February 1996, until 23 February 1998 at 13.2% per annum
(b) from 23 February 1998 until the date of judgment at 12.3% per annum
Westcoast argued that it is entitled to interest pursuant to s 60 of the Supreme Court Act 1986 unless "good cause is shown" to the contrary (Williams v Volta [1982] VicRp 74; [1982] VR 739 at 742). It argued that interest is awarded under that section to compensate the plaintiff for being held out of its money during the time the litigation takes to progress: Shoard v Palmer (1989) FLR 402. In that case Kirby, P. commented
"I do not consider that the `exigencies' of the list are properly taken into account to reduce the entitlement to interest. Indeed the provision by parliament of a statutory right to interest is doubtless occasioned by, amongst other things, a recognition that cases take time to come before courts for determination and that the parties who succeed should be protected by an award of interest in compensation." (419)
"the reserved costs of 11 September 1998 of the defendants be paid by the plaintiffs"
A date was tentatively fixed by order for the hearing of the trial on 1 March 1999.
(a) the three defendants were in an unusual position of having been the plaintiff's legal advisers and having acted for it in the Western Australian proceedings
(b) the complexity of the litigation
(c) the manner in which the defendants prosecuted the proceeding and
(d) the fact that a large part of the proceeding was taken up by the three defendants arguing the question of contribution between themselves.
(a) the defendants costs of 10 September 1998 and 5 October 1998
(b) costs relating to the amendments of the plaintiff's claim
(c) costs relating to the inadequate discovery given by the plaintiff
(d) costs relating to issues where the plaintiff was unsuccessful in its claim or abandoned its claim
(e) miscellaneous items comprising the costs incurred in bringing Tyrell to give evidence on behalf of the plaintiff in respect of the tax returns which evidence was irrelevant and the time and effort spent in trying to locate Eddy and discussing whether he would be called.
(a) The plaintiff pay the defendants' costs of 10 September 1998 and 5 October 1998.
(b) The defendants pay the costs of the plaintiff including reserve costs up to and including 4 March 1999 (the first day of the trial).
(c) The defendants pay 80% of the costs of the plaintiff for the trial after 4 March 1990.
(d) The plaintiff pay 20% of the costs of the defendants of the trial after 4 March 1999.
They also sought an order that the costs of the plaintiff incurred in respect of the application brought by the second defendant to have Justice Warren remove herself as the Trial Judge be paid by the second defendant. As to that issue, the parties have agreed that the appropriate order is that the second defendant pay the plaintiff's costs of that application. I will make that order.
The claim of the plaintiff for costs generally on solicitor/client basis or
(a) The claim for lost profit on anticipated subsequent orders which was formally abandoned on 21 April 1999.
(b) The claim for loss of profits from other items. The claim initially included seven items and then three were abandoned. The claim totalled $309,500. The claim was lost.
(c) Claim for out of pocket expenses. This was a claim for $19,000 which was unsubstantiated and did not succeed.
(d) The issue arising from the difference between solicitor client costs and party/party costs. In this instance the argument appears to be not so much that the claim was abandoned and lost but that the defendant was successful in that I subsequently found there was a gap of $50,000 between solicitor client and party/party costs which the plaintiff would have had to bear if successful in the Western Australian proceedings. This was an issue effectively won by the defendant.
(e) Exemplary damages. This again was an issue on which the defendant was successful. The plaintiff claimed $250,000
(f) Claim for interest in the Western Australian proceedings. Again the plaintiff was unsuccessful.
(g) The Hungerfords claim. This again is a claim in which the plaintiff was unsuccessful and the defendants successful.
In my judgment the majority of the claims and issues listed did not involve significant costs. An exception was the time spent on the issue (d) above relating to the difference between the solicitor/client costs and party/party costs. A substantial body of evidence was led on this issue and there was significant argument. It was not a total victory for the defendants, however. I accept also that time was taken up with evidence relevant to the Hungerfords claim and some time taken up in the consideration and debate of it.
Miscellaneous costs issues raised by the plaintiff
1. the defendants pay the plaintiff's costs of the proceedings including reserved costs, costs of transcript, video conferencing and mediations and reserved costs other than the plaintiff's costs of the application for disqualification heard by Warren, J. which should be paid by the second defendant.
2. that such costs be taxed, in default of agreement, on a party/party basis save and except for the cost of the plaintiff incurred on 29, 30, 31 March and 1, 7, 8, 9, 15, 16, 19, 20 and 21 April which costs should be taxed, in default of agreement, on a solicitor/client basis.
Westcoast Clothing Company Pty Ltd
Freehill Hollingdale & Page [1999] VSC 309
(1993) 1 VR 155
(1988) 81 ALR 397
(1994) 35 NSWLR 292
(1993) 46 FCR 225