Adams by her next friend O'Grady v State of New South Wales (No 2)

In the matter of Adams by her next friend O'Grady versus the State of New South Wales, the Court of Appeal was tasked with considering the costs associated with the litigation. The dispute centred around the costs incurred by the plaintiff, Adams, in her action against the State of New South Wales. The Court of Appeal was called upon to address the principle that costs generally follow the event, and whether the costs should be enforced against the plaintiff's tutor.

The legal issues that the Court of Appeal needed to resolve were the appropriate exercise of discretion in awarding costs and whether the costs should be enforced against the tutor of the plaintiff, who is a minor. The Court had to consider the broad discretion it possessed in determining costs, particularly in the context of compelling discretionary reasons that might affect the enforcement of costs against the tutor.

In its decision, the Court of Appeal emphasised the principle that costs generally follow the event. However, the Court exercised its broad discretion and decided that the costs should be ordered against the State of New South Wales. Nevertheless, the Court found that it would not be appropriate to enforce the costs against the plaintiff's tutor, given the compelling discretionary reasons. The Court highlighted the unique circumstances of the case and the need to protect the interests of the minor plaintiff.

The Court of Appeal ordered that the costs of the litigation be borne by the State of New South Wales, but it explicitly stated that these costs would not be enforced against the plaintiff's tutor. This decision underscores the Court's commitment to balancing the principle of costs following the event with the need to consider the broader implications of enforcing costs against a tutor of a minor.