Big Money World Pty Ltd v Red Hair Entertainment Pty Ltd

Big Money World Pty Ltd (the applicant) sought leave to appeal a decision of the primary court concerning costs. The dispute arose after the applicant discontinued its proceedings against Red Hair Entertainment Pty Ltd (the respondent). The applicant sought an alternative costs order under rule 42.19(2) of the Uniform Civil Procedure Rules 1999 (NSW), arguing that the usual order for the discontinuing party to pay the other party's costs should not apply in this instance.

The central legal issue before the Court of Appeal was whether the circumstances of the discontinuance warranted a departure from the general rule that a party who discontinues proceedings is liable for the costs of the other party. Specifically, the court had to consider whether the respondent had acted unreasonably in a manner that justified the applicant's application for an alternative costs order.

The Court of Appeal ultimately dismissed the applicant's application for leave to appeal. The court found that there were no grounds to depart from the usual costs order. The applicant was therefore ordered to pay the costs of the respondent in relation to both the application for leave to appeal and the subsequent application for costs.