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Kirkpatrick and Warehouse World Ltd (as Trustees of the James Trust) v Beacham Ltd [2018] NZDC 5405

Published 10 May 2019

Decision on costs — indemnity costs — solicitor/client costs — contract — Black v ASB [2012] NZCA 384. The plaintiffs sought an award of indemnity costs against the defendants jointly and severally in relation to the recovery of $30,195.53, plus interest and costs, for the rental of an Auckland premises. The claim was settled just prior to the commencement of the substantive hearing. The defendants objected to amount of costs sought and submitted that the contract did not entitle the plaintiffs to recover solicitor/client costs for every step required to recover the unpaid rental; however, the Judge disagreed. The Judge considered the steps set out in Black v ASB in assessing whether indemnity costs were reasonable. The Judge viewed the tasks the costs were derived from to be those contemplated under the contract, the charge-out rates to be in the normal range, and that there were no other principles of law that would deprive the plaintiffs of the amount claimed. The Judge held in favour of the plaintiffs, ordering the defendants to pay the full indemnity costs provided for by the lease; $39.937.50 plus disbursements of $563.01 and further costs on the application of $2,950. Judgment Date: 28 March 2018.

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