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Jeans v Upton [2018] NZDC 17064

Published 12 June 2019

Costs — indemnity costs — estate — District Court Rules 2014, r 14 — Trustee Act 1956, s 38(2) — Hunter v Hunter [1938] NZLR 520 — Black v ASB Bank Ltd [2012] NZCA 384. The plaintiff sought costs associated with legal action taken against the estate of her late stepfather, for alleged misappropriated funds from the sale of two properties. Also sought by the plaintiff was a sum of $57,263.91 in interest, which the Court certified as recoverable by the plaintiff against the estate. The Judge first addressed costs sought by the first defendant, the trustee of the deceased. The Judge was satisfied that the first defendant had not acted unreasonably or for his own benefit, so granted his reasonable costs associated with the proceeding — to be paid from the estate. Turning to the plaintiff's costs, the Judge identified the case law and the District Court Rules relevant to the application. The plaintiff had previously been prepared to accept the sum of $64,819.36 plus interest from the estate and $20,000 towards her legal fees, but the defendants had chosen to put the plaintiff's case to a proof hearing, leading the Judge to consider an award of increased costs. The Judge accepted an appropriate amount of costs to award the plaintiff, on an increased basis, was $28,000 plus GST, plus disbursements of $5980 to be paid from the estate. The second defendants paid their own legal fees and sought no reimbursement. In response to the plaintiff's submission that the second defendants should pay the costs rather than the estate, the Judge refused, noting that it would be inappropriate to tailor awards in the District Court against what might happen in the High Court. Judgment Date: 21 August 2018.

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