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Nursing home that tried suing 4 firms now arguing costs
The Federal Court of Australia has referred the issue of costs to a registrar, after a nursing home attempted to sue four law firms and a judge for professional negligence.
Naomi Neilson
In what was supposed to be the end of a decades-long legal dispute, Derwent Court and operator Jadwan has argued that it should only have to pay two-thirds of costs on grounds of “partial success”, despite it not having causation and two dismissed appeals.
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In April, the Federal Court put an end to a long legal dispute that saw Jadwan – a nursing home operator – slam four law firms and a lawyer-turned-Supreme Court judge for professional negligence and other damages, respectively. The nursing home was shut down following a federal government decision to withdraw its approval and funding.
Jadwan accused lawyers from Rae & Partners, Wilson Dowd and Toomey Maning & Co – and a Melbourne solicitor who moved between the firms – of professional negligence. The legal dispute began in 1998 with the three law firms in relation to the funding withdrawal.
Jadwan’s original damages claim was dismissed and its complex appeal was also thrown out. A second appeal was dismissed, after the Federal Court found that Jadwan failed to argue they were not given “reasonable and prudent advice” by the firms.
At the time, the court made orders for the parties to file written submissions for costs and for it to be questioned on papers. All parties have submitted, with Jadwan insisting that it should only have to pay two-thirds of the agreed sum on grounds of “partial success”.
“We shall direct a registrar of the court [to] determine [the] amount of the respondents’ costs in such manner as the registrar deems fit, and at the conclusion of that process, the registrar is to make orders about the payment of the respondents’ costs in the sums assessed,” court documents read.
