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Old Town Properties Ltd v Austin [2018] NZDC 17275

Published 08 May 2019

Costs — District Court Rules 2014, rr 14.1, 14.2, 14.7, 14.12 — Manukau Golf Club Inc v Shoye Venture Ltd [2013] NZSC 109 — Thom v Davys Burton [2008] NZSC 65 — Potter v Blue Wallace Surveyors Ltd [2012] DCR 410 — Singh v Auckland Goldline Co-operative Taxi Society Ltd [2018] NZHC 1673 — District Court Rules 2014 — Limitation Act 1950. The defendants were successful in a strike out claim against the plaintiff on the basis the proceeding was out of time under the, now repealed, Limitation Act 1950. The defendants sought costs of $5,429 (determined on a 2B basis) plus disbursements, in accordance with the District Court Rules, r 14.12. The plaintiff relied on r 14.7, arguing that costs should lie where they fall as, had the case not been ruled out of time, the plaintiff would likely have been successful on the merits. The Judge reviewed the correspondence between the parties, which included the plaintiff and defendants making an offer and counter-offer. The defendants had also expressly informed the plaintiff the claim was statute-barred. Upon the review of case law, the Judge held that costs should be awarded to the defendants. While the plaintiff's claim may have had merit, legal proceedings were not the only option available and the plaintiff was duly informed that its claim was statute-barred. Judgment Date: 24 August 2018.

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