Brereton v Gatto — Court fixed the liquidators’ recoverable costs at $27,422.48

Case
Brereton (Liquidator) v Gatto, in the matter of Get Concreted Pty Ltd (In Liquidation) (Lump Sum Costs)
Court
Federal Court of Australia
Date Decided
28 September 2026
Citation
[2026] FCA 1426
Topics
costs, lump sum costs, liquidation, default judgment

Background

Michael Brereton and Sean Wengel, as joint and several liquidators of Get Concreted Pty Ltd (in liquidation), and the company sued Daniel Gatto.

On 24 September 2026, Jackman J entered default judgment for the plaintiffs with costs. His Honour directed the plaintiffs to file an affidavit the next day addressing the amount of a lump sum costs order.

The Court’s Holding

The plaintiffs filed an affidavit from Megan Scott, a partner of their solicitors, Hall & Wilcox. It quantified their costs at $27,422.48: $22,867.13 in professional fees after a 25% discount, and $4,555.35 in undiscounted disbursements.

Jackman J held that the claimed amount was reasonable and corresponded with the amount likely recoverable on a party-party assessment. The Court therefore ordered Gatto to pay the plaintiffs’ lump sum costs of $27,422.48 pursuant to the earlier costs order.

Key Takeaways

  • A court may fix costs as a lump sum after default judgment rather than require a formal assessment.
  • A solicitor’s affidavit can support the quantification where it provides a reasonable estimate of fees and disbursements.
  • A discount to professional fees may assist in showing that the proposed lump sum aligns with likely party-party recovery.

Why It Matters

The decision is a short illustration of the Federal Court’s practical approach to quantifying costs following default judgment. Where supported by evidence and a reasonable discount, a lump sum may be ordered promptly without further costs assessment proceedings.

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