Ahern v Aon Risk Services Australia Ltd (No 2)

This matter concerned an application by Aon Risk Services Australia Ltd for a specified gross sum costs order against Mr Ahern, pursuant to section 98(4)(c) of the *Civil Procedure Act 2005* (NSW). The dispute arose in the context of protracted litigation between the parties, which had been marked by significant delay and aggravation.

The primary legal issue before the Court of Appeal was whether it was appropriate to make a gross sum costs order, and if so, how that sum should be quantified. This involved considering the unchallenged evidence of the actual costs incurred by Aon, as well as the challenged evidence of an expert costs assessor, and determining an appropriate discount to apply to the gross sum.

The Court reasoned that the history of the litigation, including the delay and aggravation, supported the making of a gross sum order. It accepted the unchallenged evidence of Aon's actual costs but found that the expert costs assessor's evidence was not persuasive. Applying the principles for making a gross sum costs order, the Court determined the appropriate quantum by considering the actual costs incurred and applying a discount.

The Court ordered that Mr Ahern pay Aon’s costs of the summons filed on 3 August 2020 in the gross sum of $75,000, and Aon’s costs of the motion filed on 19 August 2021 in the gross sum of $8,000, both pursuant to section 98(4)(c) of the *Civil Procedure Act 2005* (NSW).