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EMPLOYMENT CASES SUMMARY April 2007 - Table of Contents
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Compensation and Cost Award Tables
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Costs - April 2007

 
 

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Aerengamate v Optimum Performance Ltd

15 Aug 2006, D King, AA 200A/06, (1 pages)

COSTS - Successful personal grievance - Length of investigation meeting not specified - Applicant legally aided with $770 grant - Fees incurred reasonable, respondent to meet full costs

Result: Costs in favour of applicant ($770)

Booker (Labour Inspector) v Gill t/a Gills Cleaning Services

15 Sep 2006, V Campbell, AA 294/06, (3 pages)

ARREARS OF HOLIDAY PAY - Applicant Labour Inspector sought holiday pay, interest, penalty and costs - Outstanding holiday pay owed upon termination of employment - No appearance by respondent - No good cause for failure to attend - Authority satisfied respondent served notice of investigation meeting - Respondent failed to keep or produce wage and time records - Prejudiced applicant's ability to bring accurate claim - Arrears of holiday pay due and owing - Interest 8.5 percent - Applicant directed to serve copy of determination on respondent forthwith - PENALTY - Respondent in breach of ERA s130 2000 for failure to keep wage and time records - Appropriate penalty be imposed - COSTS - Applicant entitled to filing fee - Cleaner

Result: Application granted ; Arrears of holiday pay ($555.69)(Payable to Labour Inspector) ; Interest (8.5%) ; Penalty ($250)(Payable to Crown) ; Orders accordingly ; Disbursements in favour of applicant ($70)(Filing fee)

Clark v Northland Hunt Incorporated

7 Feb 2007, Perkins J, AC 6/07, (1 pages)

COSTS - Unsuccessful de novo challenge to determination of Employment Relations Authority (see: AC 66/06) - Defendant sought contribution of $18,240 towards total costs of $31,478.91 including GST and disbursements - Amount sought was based on category 2B High Court scales - Costs in Employment Relations Authority already dealt with by Authority - HELD - Starting point for costs in Employment Court was sum actually incurred by defendant amounting to $16,173.13 - Was modest fee for nature of proceedings - Reasonable contribution to costs actually and reasonably incurred was $11,000 - Plaintiff to pay defendant $11,000

Result: Costs in favour of defendant ($11,000)

Darling v Platinum Properties Ltd

31 Jul 2006, P Cheyne, CA 78A/06, (2 pages)

COSTS - Partially successful personal grievance, arrears claim and penalty - 1½ days investigation meeting - Applicant sought costs of at least $9,288, being 66 percent of actual costs - Respondent argued any costs should be limited to $1,600 in line with Calderbank offer made following mediation - Calderbank offer irrelevant as fell short of mark - Award of costs only to cover work for investigation meeting, not mediation - Applicant's application for amendment to legal aid grant undecided - Authority inferred grant for purposes of mediation and extension requested to cover Authority proceedings - Grant would probably limit amount counsel able to charge - Given difficulties, best course was to start with assessment of time reasonably required for applicant's participation in investigation process - Authority considered steps required by counsel and determined 32 hours professional time required - At reasonable rate of $200 per hour, reasonable fees would be $6,000 - Authority mindful modest award would see largely successful applicant out of pocket - However, not determining factor - Proper point of reference was level of costs reasonably incurred - No evidence about respondent's ability to meet award of costs despite claim was start-up enterprise operating monthly deficit - Respondent introduced substantial amount of evidence that on its view of events must have been irrelevant - Resulted in matter taking more than single day and caused extra costs

Result: Costs in favour of applicant ($4,500) ; Disbursements ($70)(Filing fee) ; ($150)(Meeting fee)

Farmers Transport Ltd v Kitchen

27 Feb 2007, Shaw J, WC 6/07, (1 pages)

COSTS - Unsuccessful de novo challenge to determination of Employment Relations Authority (see: WA 44/06) - Defendant sought costs for Authority and Employment Court proceedings - Authority had already awarded $3,000 costs in favour of defendant - For Court, defendant sought contribution to actual costs of $17,025 including GST plus disbursements of $27.68 - One day hearing - Plaintiff alleged defendant's costs unreasonable - HELD - Costs order in Authority was not specifically challenged and there was no reason to interfere with it - Because counsel's hourly rate was not known and no breakdown of amount claimed was supplied, an alternative and more certain approach was to apply the High Court scale of costs - Category 2 band B of the High Court scales amounted to $8,320 - Plaintiff to pay costs of $8,320 plus GST plus disbursements of $27.68

Result: Costs in favour of defendant ($8,320 plus GST plus disbursements of $27.68)(Court) ;Costs in Employment Relations Authority confirmed

Flight Centre v Keys

11 Aug 2006, H Doyle, CA 120/06, (4 pages)

COSTS - Applicant discontinued claims against respondent before substantive investigation meeting but after interlocutory matter and number of telephone conferences - Respondent sought actual costs of $8979, including mediation costs, plus disbursements - Authority not prepared to award costs for mediation - Claim against respondent no more substantial than others in Authority but had degree of legal complexity - As no investigation meeting Authority not able to form view on whether claim brought for wider commercial reasons - No direct evidence respondent's current employer funded defence - No grounds to justify actual costs - Considered reasonable costs would be about $3,000 even for experienced counsel - Disbursements not specified - Fair and reasonable in circumstances to make higher than normal award for claim discontinued before investigation

Result: Costs in favour of respondent ($2,000 including disbursements)

Humphry v Murphy's Kitchen and Home Renovators Ltd

14 Feb 2007, P R Stapp, WA 27/07, (2 pages)

COSTS - Successful personal grievance - One day investigation meeting - Applicant sought costs - Applicant received legal aid of $2,820 - Appropriate to fix contribution as 75 percent of that sum - Respondent submitted costs should lie where they fall - Claimed issues with ability to pay any sum awarded - Unrealistic costs should lie where they fall - Authority not convinced respondent lacked ability to pay

Result: Costs in favour of applicant ($2,115) ; Disbursements ($86.40)

Hyde v Hospitality Services Ltd

27 Jul 2006, GJ Wood, WA 83A/06, (2 pages)

COSTS - Unsuccessful personal grievance as applicant acquiesced in changes imposed on her - Length of investigation meeting not specified - Respondent sought contribution of $6,000 to total costs in excess of $15,000 - Respondent argued actual costs increased by Authority's request for second investigation meeting day - Applicant submitted costs should lie where they fall as respondent significantly breached obligations and did not come to Authority with clean hands - Applicant only unsuccessful in claim because delayed raising grievance until found new employment - Clear case where successful party should not receive contribution to costs

Result: Costs to lie where they fall

IHC New Zealand Incorporated v Fitzgerald

28 Feb 2007, Shaw J, WC 7/07, (1 pages)

COSTS - Successful de novo challenge to determination of Employment Relations Authority (see: WC 19/06) - Plaintiff sought costs for both Employment Relations Authority and Employment Court proceedings - Sought contribution of $13,000 plus disbursements of $3,063.71 towards total costs of $23,000 plus GST and disbursements - Plaintiff submitted it was not for profit organisation and modest award would amount to punishment for acting properly - Defendant claimed she was impecunious - HELD - Costs incurred by plaintiff reasonable - Financial circumstances of defendant meant proportion of costs it would normally be entitled to had to be reconsidered - Although she lost the challenge, the defendant did not bring a hopeless or unmeritorious case - Notwithstanding defendant's less than satisfactory conduct in course of case, it would be unconscionable to make costs award in light of defendant's financial hardship and certain knowledge that she would be unable to meet those costs - Award of costs against defendant would amount to punishment - In present circumstances plaintiff was unlikely to be able to recover any award which would render it nugatory - Costs were to lie where they fell

Result: Costs to lie where they fall

Johnson v Badminton New Zealand Ltd

21 Jul 2006, H Doyle, CA 38A/06, (2 pages)

COSTS - Unsuccessful personal grievance - One day investigation meeting - Respondent sought contribution of $7,516 to total costs of $11,274 and wanted it noted that it was non profit organisation - Applicant argued award of that nature would be punitive - Submitted award should be at lower end of scale - Applicant overseas and counsel unaware of whereabouts - No submission regarding applicant's ability to pay costs - Respondent's non profit status taken into consideration - Respondent entitled to contribution to costs plus disbursements - Entitled to half counsel's airfare - Recognised option to instruct local counsel but that respondent had head office outside area - Entitled to full costs of executive directors airfare - Not prepared to allow costs for President who was not required to appear

Result: Costs in favour respondent ($2,300); Disbursements($293)(Counsel Airfare); ($208.02)(Travel); ($74.06)(Photocopying & judgments); ($9.15)(Tolls)

Kennedy v Stockman and Anor

21 Jul 2006, M Urlich, AA 173A/06, (2 pages)

COSTS - Successful personal grievance - Length of investigation meeting not specified - Applicant sought award approaching actual costs of $5,915 - Claimed incurred additional costs due to second respondent's conduct - Applicant entitled to fair contribution to costs reasonably incurred - Authority satisfied applicant put to unnecessary additional expense - Second respondent ordered to pay costs to applicant - Authority declined to make order against first respondent personally - Employer was second respondent

Result: Costs in favour of applicant ($3,000)

Kumar v McDonald's Restaurant (New Zealand) Ltd

31 Jul 2006, A Dumbleton, AA 180A/06, (2 pages)

COSTS - Unsuccessful personal grievance - More than three day investigation meeting - Respondent sought contribution to costs of $23,760 and disbursements of $250, being 66 percent of solicitor-clients costs of $45,765 - Respondent noted union acknowledged would indemnify applicant for any award of costs - Applicant submitted matter not complex and maximum of $6,000 costs appropriate - Length of investigation meeting generally not matter for one party to criticise other about as subject to overall control of Authority - Parties need to consider carefully level of representation - Parties not expected to do work of Authority and cases should not fail because relevant evidence not uncovered or presented, or because parties unaware of procedure - Level of fees charged matter between respondent and its counsel - Applicant should not automatically become fully responsible simply because unsuccessful - Investigation meeting could have been concluded in 2-2½ days - Authority permitted applicant to bring evidence in attempt to show complainants lied to respondent - If they had lied would not make dismissal unjustified, but Authority would have expected respondent to consider whether, morally if not legally, obliged to reinstate applicant and take disciplinary action against complainants - Applicant failed to show any injustice done - Union should have ascertained exactly what complainants were stating before pursuing line of inquiry before Authority - For at least one day of investigation meeting applicant must bear responsibility of unnecessarily prolonging investigation - Higher level of costs fixed partly for extra day, and also for additional time needlessly taken up after applicant supplied second, much more extensive, statement of evidence part way through investigation - Resulted in need to recall respondent's key witnesses - Investigation meeting treated as lasting three full days - Costs fixed at $1,800 for two days and $,3,600 for third day

Result: Costs in favour of respondent ($7,200) ; Disbursements ($250)

McGreal v Television New Zealand Ltd

22 Feb 2007, Perkins J, AC 3A/07, (1 pages)

COSTS - Unsuccessful application for declaration whether employee or independent contractor - Defendant sought $10,000 contribution towards costs - 3½ day hearing - Plaintiff alleged impecunious, medical difficulties and care of children - HELD - defendant's reasonable actual costs likely to have been substantially greater - Defendant's concession generous - Having embarked on proceeding only appropriate that plaintiff make contribution - Costs in favour of defendant ($10,000) - Payment by instalments - Amounts to be negotiated between parties

Result: Costs in favour of defendant ($10,000) ; Orders accordingly

New Zealand Tramways & Public Transport Employees Union Incorporated & Anor v Transportation Auckland Corporation Ltd & Anor

23 Feb 2007, Full Court, AC 9/07, (1 pages)

COSTS - Unsuccessful de novo challenge (see: AC 61A/06) - Defendant sought contribution of $15,000 plus disbursements of $148.56 to actual costs of $18,306.56 - Plaintiff alleged matter a test case - HELD - Even though case consisted primarily of an issue of construction of a collective agreement the arguments depended upon the effect of a statutory overlay and its interpretation - Interpretation of statute was of general importance - First case to come before the Court involving consideration of relevant amendment to Holidays Act 2003 - Interpretation would be of assistance in drafting and construction of employment contracts generally - Costs to lie where they fell

Result: Costs to lie where they fall

Penniall v 101 Realty Ltd

15 Aug 2006, D King, AA 237A/06, (1 pages)

COSTS - Successful compliance order - Length of investigation meeting not specified - Applicant sought costs of $900 plus disbursements - Respondent did not attend investigation meeting - Apart from stating found hourly rate extortionate, made no costs submissions - Simple matter that could have been easily resolved by respondent - Applicant entitled to contribution to costs

Result: Costs in favour of applicant ($700) ; Disbursements ($70)(Filing fee)

Pepene v Idea Services Ltd

16 Aug 2006, D King, AA 149A/06, (2 pages)

COSTS - Unsuccessful personal grievance - Length of investigation meeting not specified - Respondent sought award of costs of $4,500 out of total costs $5,935 plus disbursements - Applicant in receipt of accident compensation - Compensation based on part time employment since departure from respondent - Statement from ACC indicated financial resources limited - No reason for costs not to follow the event, however in circumstances substantial contribution would be punitive - Applicant to make reasonable contribution to costs of $500 plus disbursements

Result: Costs in favour of respondent ($500) ; Disbursements ($626)(Travel)

Sullivan v Maxwell Marine Ltd

17 Aug 2006, R Arthur, AA 249A/06, (1 pages)

COSTS - Successful personal grievance - One day investigation meeting - Applicant sought $3,500 plus disbursements as reasonable contribution to total costs of $5,400 - Respondent argued matter warranted an award of normal costs only - Nature of case did not require variation from notional daily rate - Respondent ordered to pay contribution to costs of $2,000 plus disbursements

Result: Costs in favour of applicant ($2,000) ; Disbursements ($109.30)(expenses);($70)(filing fee)

Sword v Collins Travel Ltd

25 Jul 2006, J Wilson, AA 135A/06, (2 pages)

COSTS - Successful personal grievance - Length of investigation meeting not specified - Applicant sought contribution of $2,220 to total costs of $3,556 plus disbursement of $225 - Submitted put to expense of two investigation meetings as respondent not represented at first due to illness - Respondent failed to file costs submission - While investigation somewhat unusual because of need to hold two separate investigation meetings, nothing to indicate award of costs should be substantially outside usual awards

Result: Costs in favour of applicant ($1,500) ; Disbursements ($225)

Williams v Kimberleys Fashions Ltd

5 Feb 2007, Perkins J, AC 4/07, (1 pages)

COSTS - Successful de novo challenge to determination of Employment Relations Authority - Plaintiff's Authority proceedings conducted on contingency basis - Plaintiff received legal aid for challenge - Plaintiff sought full solicitor client costs - In alternative, sought $10,127.75 as advanced by legal aid - Plus $8,544 for costs and disbursements in Authority - Plus $2,812.50 for costs relating to submissions on costs and stay of proceedings in Authority following the determination - Plus $1,968.75 for costs relating to obtaining legal aid - Plus $3,150 for costs for drafting submissions in support of costs in Employment Court - Defendant submitted appropriate award was two-thirds of actual costs and allowed by Legal Services Agency - At Court's request plaintiff provided calculation based on category 2B High Court scales, which amounted to $15,680 plus disbursements of $1,761.45 - HELD - No contribution to costs in Authority because proceedings were conducted on contingency basis and no costs incurred - Extent of costs in Employment Court was limited to amount of legal aid - Court exercised discretion not to reduce costs from legal aid amount - Defendant to pay plaintiff $10,127.75 inclusive of disbursements - Authority's costs award set aside

Result: Costs in favour of plaintiff ($10,127.75)

Wilson v Classic Manufacturing Ltd

20 Jul 2006, L Robinson, AA 220A/06, (2 pages)

COSTS - Successful personal grievance - 1 half day investigation meeting - Applicant sought indemnity of actual costs of $10,375 plus disbursements - Claimed limited means to pay costs - Alleged respondent prolonged investigation with unreasonable points, entitling applicant to great contribution to costs - Respondent argued indemnity costs not warranted and approaches to settle made prior to investigation - Suggested contribution of $1,500-$2,000 appropriate - Applicant entitled to reasonable contribution to costs but not on indemnity basis - Nothing to warrant departure from usual approach to costs

Result: Costs in favour of applicant ($4,500)

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