Australian Flight Services v Minister for Industry Science & Technology

Australian Flight Test Services Pty Ltd ("AFTS") sought an interlocutory injunction against the Minister for Industry, Science and Technology, the Commonwealth of Australia, the Flinders University of South Australia and two of its employees, Jörg Michael Hackar and Peter Schwerdtfeger. AFTS claimed that it and the University had jointly prepared a grant proposal for a major national research facility, but the University subsequently submitted a revised proposal on its own which excluded any reference to AFTS. This revised proposal was successful, resulting in the University receiving a grant of $8.5 million from the Commonwealth. AFTS sought to prevent the Commonwealth from providing further funds to the University pursuant to the grant, and to restrain the University from expending any funds received. The Minister and the Commonwealth gave undertakings to the Court that were accepted by AFTS, so they played no part in the proceedings. The University resisted the claim for injunctive relief, and the matter was argued before O'Loughlin J on 28 February 1996. The application for injunctive relief was dismissed, and the University sought an order that the costs of the interlocutory hearing be taxed and paid forthwith.

The court considered whether it was appropriate to exercise its discretion under Order 62 Rule 3 of the Federal Court Rules to order that costs be taxed and paid forthwith. The court noted that the application for injunctive relief was a discrete issue separate from the primary issues in the trial. The court also considered the importance of the claim for injunctive relief, and the consequences for the University if they failed to obtain an injunction. The court concluded that it was in the interests of justice to exercise its discretion and order that the University have leave to tax the costs of and incidental to the application filed by AFTS wherein injunctive relief was sought, and that AFTS pay those costs forthwith upon service of the allocatur.

The court ordered that the Flinders University of South Australia have leave to tax the costs of and incidental to the application filed by AFTS wherein injunctive relief was sought, and that AFTS pay those costs forthwith upon service of the allocatur.