Justice slams MAK Water, staff costs dispute

Western Australia’s chief justice has lambasted the quarrel over legal costs in a court dispute between Peter Hood and Tom Henderson-backed MAK Water and its former staff.

Mak Water launched proceedings against its former employees Brendan Doherty, Michael Hartnett and Kyle Matthews, who all became shareholders and directors of Bwater, trading as ABCO Water Systems.

It has been alleged that the trio breached their employment contract with Mak Water on top of breaches of fiduciary duty and the company's confidential information.

Last month, Supreme Court of Western Australia chief justice Peter Quinlan was of the view that Mak Water should pay Mr Hartnett and Mr Matthews’ costs but he reserved the costs order because parties wanted to address additional matters.

In a judgment published yesterday, Justice Quinlan said he regretted reserving the costs order.

“As a consequence of my having reserved the costs, instead of the issue being resolved efficiently and inexpensively, I received a total of 24 pages of written submissions and references to 19 authorities of this and other courts,” he said in his judgment.

“As it happens, the submissions filed in relation to the costs of the application were, in aggregate, longer than the submissions in relation to the applications for summary judgment themselves.

“This should not have been necessary.

“A judge of this court does not need lengthy submissions, citing chapter and verse, as to the principles concerning the awarding of costs, including indemnity costs.

“Nor does a judge need submissions as to the effect of the very decision he or she has just delivered.”

Mak Water was represented by law firm Dentons Australia while Mr Doherty and Mr Hartnett were represented by Capital Legal.

Justice Quinlan made a judgment on the matter on July 24, in favour of Mak Water paying Mr Hartnett about $385,000 and almost $160,000 to Mr Matthews.

According to yesterday’s judgment, Mak Water proposed to the court that Mr Hartnett and Mr Matthews’ costs should be reduced, relying on a list of issues.

Mr Hartnett and Mr Matthews also sought a court order for Mak Water to pay their applications on an indemnity basis.

In the judgment, the men sought the order because Mak Water’s defences to their claims were “hopeless”.

Justice Quinlan made comments on both parties’ claims in his judgment.

“There is no basis for an order reducing the costs payable by reference to discrete issues in this case,” he said.

“While I did conclude that there was no triable defence to the claims, I would not go so far as to say that MAK Water's position was so 'hopeless' or its approach to the applications so unreasonable as to require the sanction of the Court.”

Mak Water is a Malaga-based private company focused on providing water and wastewater treatment solutions for the industrial sectors.

The company board comprises former Coogee Resources chief executive and current De Grey Mining director Peter Hood, Taruga Minerals director Gary Steinepreis, Forrest Capital director Tom Henderson and Mak Water chief executive Andy Byk.