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Naylor v Glyn W Jones Builders Limited [2018] NZDC 16240

Published 04 April 2019

Reserved decision on costs — indemnity costs — application to stay proceedings — District Court Rules 2014, rr 14.2, 14.6(4),15.20 — Bradbury v Westpac Banking Corporation [2009] 3 NZLR 400. The respondent sought indemnity costs of $7,667.50 against the applicant for having bought what they contended to be wilfully unnecessary proceedings.The parties had previously been involved in arbitration regarding a dispute over an easement on the respondent's property, which was ruled in favour of the respondent. However, the applicant began subsequent court proceedings in relation to issues arising out of the easement. The respondent had asserted that it had been fulfilling its obligations under the easement, and sought confirmation, as the deadline for filing got closer, that the proceedings would be discontinued. The respondent got no response, so filed an interlocutory application for a stay of proceedings. The respondent submitted that the applicant commenced the proceeding in wilful disregard of known facts; that the Easement Certificate required the parties to refer any dispute to arbitration. The applicant’s response was that she put the respondent on notice of her intention to have the matter arbitrated or, if arbitration was not agreed, to refer the matter to the District Court for determination. The Judge held that the proceedings were unnecessary, as the applicant was aware that the Easement Certificate required disputes to be referred to arbitration, and the respondent had little choice but to file an application for Stay of Proceedings, given the pending deadline for filing of Notice of Opposition. The Judge referred to "Bradbury" regarding the instances where the Court could exercise its discretion in awarding indemnity costs, and determined that conduct in this instance did not rise to the level warranting indemnity costs, but that an increase in the costs award was appropriate. Costs in this case would have been awarded at a 2B basis, meaning $3,382.00, so the Judge uplifted that fifty percent. The final order was for the applicant to pay the respondent $5,073.00, plus disbursements. Judgment Date: 9 August 2018.

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