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Low Cost Tyres Ltd v Eastgate Low Cost Tyrez Ltd [2018] NZDC 13977

Published 21 May 2019

Costs decision — indemnity costs — third party liability for costs — District Court Rules 2014, r 14. The Judge sought submissions on costs regarding a successful claim by the plaintiffs for the repayment of a vendor loan. The defendants had succeeded in a counterclaim for the plaintiff's breach of the agreement of sale and purchase, bringing the judgment award to the plaintiff to $150,000 plus interest on that sum. At issue was the amount of interest payable, indemnity costs and who should pay the costs. The Judge held that liability for the plaintiff’s interest and the plaintiff’s and defendants’ costs and disbursements fell on the third party, namely, the defendant's lawyer. The Judge held the interest owed to the plaintiff on the judgment sum to be $41,386.03 and awarded the plaintiff $83,447.98 in costs and $10,562.90 in disbursements. The Judge awarded the defendants costs on a 2B scale of $35,511 plus disbursements of $12,748.68. Judgment Date: 1 August 2018.

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