Advertiser Newspapers Pty Ltd v Penhall (No 2)

Advertiser Newspapers Pty Ltd (the appellant) appealed a decision of the Supreme Court of South Australia concerning the costs of proceedings involving Mr. Penhall (the respondent). The dispute arose from an earlier decision where the respondent was awarded costs against the appellant. The appeal specifically concerned the quantum of those costs, with the appellant seeking to limit their liability.

The central legal issue before the Full Court of the Supreme Court of South Australia was whether the costs awarded to the respondent in the primary proceedings should be assessed on the standard basis or on an indemnity basis. This question turned on whether the appellant's conduct in the litigation warranted a departure from the usual rule that costs follow the event on a standard basis.

The Court affirmed the general rule that costs follow the event, meaning the unsuccessful party typically pays the successful party's costs. However, the Court also acknowledged that there are circumstances where costs may be awarded on an indemnity basis, which is a more generous assessment of costs. In this instance, the Court found no exceptional circumstances to justify departing from the standard basis for assessing costs. The Court considered the appellant's conduct and the nature of the proceedings, concluding that the standard basis was appropriate.

Consequently, the Court ordered that the appellants pay the respondent’s costs of the appeal on the standard basis.