Ordered to repay $67,500 received as a ‘wasted costs’ order claiming to be out of pocket following a trial delay, the High Court was told law firm Grimshaw was itself not ready to go to trial at time of the requested delay. Grimshaw is defending allegations its negligence increased remediation costs for apartments at Auckland’s Spencer on Byron.
On 23 levels, Spencer on Byron suffered weathertightness defects, resulting in a $20.05 million payout in 2013. Remediation was delayed following a dispute over who benefits. Initially, legal action was taken by Spencer’s body corporate on behalf of only a limited number of residential apartment owners. At the outset, Auckland lawyers Grimshaw and Co had these owners sign a distribution agreement setting out how any payout would be divided between them as their contribution to remediation costs. With a twenty million dollar settlement in the pot, other apartment owners piled in, claiming they too were entitled to a share. It took another court case to rejig the distribution, enabling remediation to progress.
Spencer’s body corporate claims Grimshaw was negligent in not properly drawing up a distribution agreement at the outset. Delays caused by distribution arguments led to increased remediation costs, it says. Grimshaw denies liability. This dispute was set down for a July 2021 High Court hearing. The body corporate asked for a delay; its lawyer was not available on that date. A new trial date was set. Grimshaw was awarded a ‘wasted costs’ order; compensation, having prepared for a trial that did not take place. The body corporate promptly paid $67,500 ordered. Six months later, Justice Campbell ordered Grimshaw repay this money. The High Court was told the body corporate had learnt that Grimshaw was still sitting on some 1800 documents which it says should have been disclosed before the proposed July 2021 court hearing. Grimshaw had not properly completed pre-trial procedures and was not itself ready for trial in July 2021, Spencer said, whilst implying that it was ready when making its claim for wasted costs. Grimshaw claims these documents are peripheral to their dispute and of little relevance. Spencer on Byron disagrees.
Body Corporate 207624 v. Grimshaw & Co – High Court (31.3.22)
22.070