Ajkay v Hickey & Co Pty Ltd

In Ajkay v Hickey & Co Pty Ltd, the court was called upon to resolve a dispute between the plaintiff, Ajkay, and the defendant, Hickey & Co Pty Ltd. The case concerned the interpretation and application of the Civil Procedure Act 2005 (NSW) in the context of declarations made by consent, and the associated costs implications in the absence of a full hearing on the merits of the case. The dispute arose from a contractual agreement between the parties and the subsequent legal proceedings to enforce or interpret that agreement.

The primary legal issue before the court was whether costs are payable when a declaration is made by consent without a full hearing on the merits. Additionally, the court needed to determine if a separate question presented in the proceedings could be considered an "event" from which costs may follow, even if success in the totality of the proceedings is not achieved. The court was also required to examine whether the principles of a "just, quick and cheap" resolution of the real issues justified a departure from the general rule that costs are not payable in the absence of a hearing on the merits.

The court held that costs may be payable in the absence of a hearing on the merits if the case involves an identifiable and discrete issue that is resolved through a declaration made by consent. This aligns with the objectives of the Civil Procedure Act 2005 (NSW) to facilitate a "just, quick and cheap" resolution of disputes. The court identified that the separate question presented could indeed be considered an "event" under Section 98 of the Civil Procedure Act 2005 (NSW), leading to costs being payable. The court also noted that while the plaintiff did not succeed in the totality of the proceedings, the resolution of the discrete issue was sufficient to warrant the payment of costs. This decision underscores the court's obligation to identify and expedite the resolution of separate issues within the broader proceedings.

The court ordered that costs be payable forthwith for the resolved issue, reflecting a departure from the general rule, in line with the principles outlined in Section 56 of the Civil Procedure Act 2005 (NSW) and Rule 42.7 of the Uniform Civil Procedure Rules. The specific amount of costs and further details regarding the unresolved issues were to be determined in subsequent proceedings.