Australia Pacific LNG Pty Ltd v Santos Toga Pty Ltd (No 2)

In the matter of Australia Pacific LNG Pty Ltd v Santos Toga Pty Ltd (No 2), the dispute centres around the costs associated with an application made by the defendant, Santos Toga Pty Ltd, to have parts of the plaintiff's statement of claim struck out. The case was heard by the Court, which was required to decide on the appropriateness of the defendant's request for costs following their partial success in the application. The plaintiffs, Australia Pacific LNG Pty Ltd, contested the defendant's entitlement to costs, arguing that the application and its outcome should be viewed as part of the case management process.

The court considered the plaintiffs' argument that the defendants' entitlement to costs should depend on the outcome of the substantive issues in the proceeding. However, the court held that such an approach would deviate from the established general rule that costs follow the event unless otherwise ordered. The court emphasised that the defendants had achieved substantial success on the application, which they were compelled to bring due to the plaintiffs' refusal to address complaints about their statement of claim. Despite not succeeding on every issue, the court found that the defendants were entitled to their costs of the application as they had successfully achieved a significant outcome.

The court made several orders to manage the proceedings moving forward. It ordered that the plaintiffs pay the defendants' costs of the application, subject to assessment if not agreed upon. Additionally, the court set deadlines for the plaintiffs to file and serve a third further amended statement of claim, for the defendants to file an amended defence, and for the plaintiffs to file an amended reply. The plaintiffs were also required to pay the costs incurred by the defendants due to the plaintiffs' amendments, with those costs to be assessed and recovered only after the conclusion of the proceeding. Finally, the court granted liberty to apply for further directions as necessary.