Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 15/06
Determination date 31 January 2006
Member H Doyle
Representation MJ Thomas ; C French
Location Christchurch
Parties Mullay v Southern Institute of Technology
Summary COSTS – Unsuccessful personal grievance – One day investigation meeting – Respondent sought $6,311, being 60% contribution to actual solicitor/client costs – Applicant legally aided – Section 40(2) Legal Services Act (“LSA”) required exceptional circumstances before costs in excess of amount required by s15(1) LSA awarded against applicant – Section 15(1) LSA required $50 contribution – Authority found adjournment and amendments to nature of applicant’s problem not of themselves exceptional – Unusual that evidence from applicant’s witnesses did not support claim, which suggested case not carefully analysed – Case and its progression perilously close to exceptional circumstances – Authority concerned if applicant had chosen to ignore sensible warnings or settlement offers because knew had no vulnerability to costs – Balancing concerns against investigative role of Authority, circumstances fell short of high threshold required – No exceptional circumstances – Authority considered appropriate to make order under s40(4) LSA specifying what costs order would have been made if applicant not legally aided - Found respondent’s actual costs and disbursements reasonable – Respondent entirely successful – Respondent warned applicant that claim without merit – Respondent required to do additional preparation due to problem reframing – Sensible settlement offer – Balanced against applicant’s financial position, found if applicant had not been legally aided, fair and reasonable award would have been 40% actual costs in sum of $4,112 plus $238 disbursements – Applicant ordered to pay respondent $50 costs, being amount of legal aid contribution
Result Costs in favour of respondent ($50)
Statutes Legal Services Act 2000 s15(1);Legal Services Act 2000 s40(2);Legal Services Act 2000 s40(4)
Cases Cited Bradley v Salon D’Orsay Limited [1998] 1 ERNZ 369;X v Y [2000] 2 NZLR 748
Number of Pages 4
PDF File Link: ca 15_06.pdf [pdf 23 KB]