Aldridge v Victims Compensation Fund Corporation (No 2)

The case of Aldridge v Victims Compensation Fund Corporation (No 2) involved the plaintiff, Mr Aldridge, seeking compensation from the Victims Compensation Fund Corporation for a personal injury sustained in a motor vehicle accident. The dispute was over the costs of the litigation, specifically whether Mr Aldridge should be required to pay the costs of the proceedings despite his financial hardship. The matter was heard in the Federal Court of Australia.

The central legal issue before the court was whether the ordinary rule that costs follow the event should be set aside in light of Mr Aldridge's impecuniosity. The court had to consider whether the principle that the losing party pays the costs of litigation should be applied, or if there were exceptional circumstances that justified an order for each party to bear their own costs. The court also needed to weigh the policy considerations involved in the allocation of public funds and the equitable treatment of the parties.

The court determined that while the ordinary rule that costs follow the event generally applies, there were exceptional circumstances in this case that justified a departure from this rule. The court noted that Mr Aldridge's financial hardship, coupled with the nature of the litigation involving public funds, warranted a consideration of alternative cost orders. The court concluded that it was in the interests of justice for each party to bear their own costs, reflecting a balanced approach to the allocation of costs in this particular case.

The final orders of the court were that each party bear their own costs of the proceedings, recognising the exceptional circumstances presented by the impecuniosity of the plaintiff and the involvement of public funds.