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McGruddy v Spotless Facility Services NZ Ltd [2020] NZDC 10380

Published 10 December 2021

Costs — 2B basis — daily rate — retrospective operation — form of trial — Interpretation Act 1999, s 17 — District Court Rules 2014, r 16.6 & sch 4. The respondent, having succeeded at trial, sought costs in the amount of $18,619.50 from the applicant. The respondent claimed a higher rate for some attendances, as well as indemnity costs and increased costs. The applicant sought a reduced amount, stating that if he had been paid some of the accommodation expenses owed to him earlier, he would not have initiated proceedings. The Judge rejected the higher rate claim, noting that pursuant to s 17 of the Interpretation Act, daily rates do not apply retrospectively. There was also no basis upon which to grant indemnity costs, and no increase in costs was justified either as it was a simple contractual dispute. The Judge declined to reduce the costs in favour of the applicant, noting that the applicant had increased the items in his claim over the course of the proceedings. The Judge ordered that the applicant pay the plaintiff $18,619.50 plus disbursements of $1566.32. Judgment Date: 9 June 2020.

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