Abdul-Rahman v WorkCover Authority of NSW (No 2)

Abdul-Rahman sued the WorkCover Authority of NSW for alleged injuries sustained in the course of employment. The matter came before the court to determine issues of costs. The central issue was whether the plaintiff was entitled to interest on costs orders, indemnity costs, and a lump sum costs award, as well as the appropriateness of the legal costs and counsel’s fees charged by the plaintiff’s lawyers. The court had to consider whether the plaintiff’s conduct during the proceedings warranted an adjustment to the usual costs orders and whether the defendant's refusal of Calderbank offers was unreasonable.

The court held that while the plaintiff’s lawyers were generous to a fault in their costs claims, the conduct of the proceedings did indeed require adjustment to the usual costs orders. The court found that the defendant's refusal to accept the Calderbank offers was not unreasonable, given the circumstances. However, there were question marks regarding the costs claimed under the application for a specified lump sum costs award, though no principle was at stake. The court concluded that the plaintiff was entitled to interest on costs orders and indemnity costs but found that some of the legal costs and counsel’s fees were excessive. The court ordered that the plaintiff recover costs, including interest, up to a specified amount, and adjusted the lump sum costs award accordingly.