One of the founding partners of the law firm Atanaskovic Hartnell offered some free advice yesterday to any plaintiffs with "emotional baggage". John Atanaskovic expressed his continued puzzlement in relation to a failed legal claim made against him and his partners, Tony Hartnell and Danny Farrugia, by three former partners, who have now been ordered to pay Atanaskovic Hartnell's costs.
AH claims its costs are "at least" $300,000, plus interest.
The legal action was initiated by the three founders of the corporate law firm Chang, Pistilli & Simmons in 2007 - Diana Chang, Mark Pistilli and Danny Simmons - who claimed they were owed $30,000 in fees for their last month at AH. They split off to form CPS in mid-2006.
More than eight months since a magistrate in Downing Centre Local Court, Daphne Kok, dismissed the case, the period for CPS to appeal against a more recent decision on costs lapsed on Friday. "Far too much time and money has been spent," Kok said in her judgment.
Atanaskovic said: "It eludes me why CPS instituted their hopeless claims in the first place, let alone why they rejected our repeated offers, made over the first 30 months of the case, that each party should walk away from the case with no order as to costs."
The $300,000-odd in costs do not include the fees charged to CPS by its lawyers, Clayton Utz.
Atanaskovic said he found it "hard to understand" why CPS pursued the claim, which ended up costing it "in excess of 20 times the amount they unsuccessfully claimed". "The only response to the costs query I can venture is that, in court cases, the combination of poor legal analysis and emotional baggage on the part of the plaintiffs usually proves ultimately to be quite expensive and counterproductive for them," he said.
Pistilli told Lawyers Weekly that Atanaskovic's costs of $300,000 seemed high.
"I don't regret the initial legal action we took and overall, I am satisfied with how this matter finished up and with the work of our external legal advisers."
ON AUTOPILOT
Jetset Travelworld received relatively gentle treatment from shareholders at its annual meeting yesterday, in light of the uninspiring performance of its share price since its merger with the Qantas travel agency business in 2008 and its merger with the struggling CVC Asia Pacific-owned Stella Travel Services this year.
The chairman of Jetset, Tom Dery, breezed through the first six resolutions without a moan from the half-dozen shareholders who bothered to attend. The only thing Dery's fellow Jetset directors - which include CVC's Adrian MacKenzie and Andrew Cummins, and Qantas chief bean counter Gareth Evans - had to do was stay awake.
The only whimper of protest came when shareholders were asked to approve resolution seven, the $700,000 lift in the pool of non-executive director fees to $1.5 million. One shareholder lamented: "It staggers me that non-executive directors got a 40 per cent increase in the fee. I only wish that my investment in the company gets a 40 per cent increase."
Dery said the fee increase was justified given that the business had increased in size and complexity after it merged with Stella.
Interestingly, Jetset's market capitalisation of $375 million is only slightly higher than where it was in 2007, before it merged with Qantas Holidays and Stella. Its shares have fallen by more than three-quarters since their October 2007 peak.
PRICES A-LEAPING
A Pittsburgh financial services group, PNC, has warned of big cost blowouts for people who like to celebrate the 12 days of Christmas. Countering the fears of deflation in the US, PNC has reported a 9.2 per cent price lift for the gifts mentioned in the song The Twelve Days of Christmas.
The firm yesterday announced that based on "whimsical economic analysis", the PNC Christmas Price Index had staged its the second biggest annual percentage rise in its 27-year history. Thanks to the recent surge in precious metal prices, PNC said the cost of five gold rings had risen 30 per cent. The index was also skewed by the price of two turtle doves rising 78.6 per cent to $US100 and three French hens surging 233 per cent to $US150. All of the presents in the song now cost $US23,439. In 1984 they would have cost $US12,674.
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Frequently Asked Questions about this Article…
What happened in the Atanaskovic Hartnell legal case and how much were costs awarded?
The dispute involved former partners who left Atanaskovic Hartnell to form Chang, Pistilli & Simmons (CPS). CPS had claimed about $30,000 in unpaid fees, but a magistrate dismissed the claim and the period to appeal lapsed. Atanaskovic Hartnell says it is owed at least $300,000 in costs plus interest (not including CPS’s own law firm fees), and the firm’s founding partner criticised the action as costly and counterproductive.
What does the Atanaskovic Hartnell outcome teach investors about litigation risk and legal costs?
The case highlights that small claimed sums can lead to very large legal bills: CPS pursued roughly $30,000 but faced costs reportedly in excess of 20 times that amount. For investors, the takeaway is that litigation between partners or companies can be expensive, time-consuming and potentially damaging to reputations and finances if not carefully managed.
Why did Atanaskovic say 'emotional baggage' can be costly in court cases?
Atanaskovic suggested the combination of poor legal analysis and plaintiffs acting on emotional baggage often drives unnecessary litigation and expense. In this dispute he argued CPS rejected repeated offers to walk away without costs, which ultimately made the process more costly and counterproductive for them.
What happened at the Jetset Travelworld AGM that investors should note?
At Jetset Travelworld’s annual meeting shareholders were generally muted despite weak share performance since mergers with Qantas’s travel agency business and Stella Travel Services. The main point of contention was a proposed $700,000 increase in the non-executive director fee pool (a 40% lift) to $1.5 million, which drew a shareholder complaint even though the resolution passed.
How might a 40% increase in non-executive director fees affect shareholder sentiment?
As seen at Jetset, fee increases for non-executive directors can frustrate shareholders—especially when the company’s share price has underperformed. Investors often weigh higher governance costs against returns; in Jetset’s case a shareholder noted they would prefer a comparable uplift in investment returns.
What do Jetset’s market capitalisation and share performance indicate about its post-merger progress?
The article notes Jetset’s market capitalisation was about $375 million, only slightly higher than in 2007 before its major mergers, and its shares have fallen more than three-quarters from their October 2007 peak. That suggests the mergers have not yet translated into strong market appreciation for shareholders.
What is the PNC Christmas Price Index and what did it show this year?
The PNC Christmas Price Index is a whimsical measure from Pittsburgh-based PNC comparing the cost of the gifts in the song 'The Twelve Days of Christmas.' This year it reported a 9.2% annual price lift—the second-biggest percentage rise in its 27-year history—with notable moves such as five gold rings up 30%, two turtle doves up 78.6% to US$100, and three French hens up 233% to US$150. The full set of gifts was valued at US$23,439 versus US$12,674 in 1984.
Can investors use the PNC Christmas Price Index to gauge inflation or commodity trends?
While the PNC index is described as a 'whimsical economic analysis' rather than a formal inflation gauge, it can highlight specific price trends—such as rising precious metal prices affecting the cost of 'five gold rings.' Investors can view it as a light-hearted indicator that sometimes reflects real movements in commodity prices, but it should not replace mainstream inflation data.
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