Big Un Limited (in liquidation) v Evertz (No 3)

Big Un Limited (in liquidation) sought relief from the Federal Court of Australia against Evertz, in relation to a dispute involving the liquidation of Big Un Limited. The primary issue was whether Evertz was liable for certain debts owed by Big Un Limited and the extent of Evertz’s responsibility for these debts. This case was the third in a series of litigations between the parties, focusing on the division of liability and costs associated with the liquidation.

The legal issues addressed by the court included the principles governing the apportionment of costs in cases with mixed outcomes. The court considered the general rule that costs follow the event and whether the discretion to apportion costs should be exercised in light of the mixed success of the applicant. The court had to balance the applicant's partial success on the substantive issues with the necessity to fairly apportion costs between the parties. The focus was on applying an impressionistic, broad-brush approach to determine the appropriate percentage reduction in costs for the applicant.

The court acknowledged the mixed outcome of the litigation, noting that while the applicant had achieved some success, it was not entirely victorious. The court exercised its discretion to reduce the applicant’s costs by a percentage that reflected this partial success. The court concluded that a reduction of 25% was appropriate, balancing the need for a fair outcome with the general rule that costs should follow the event. The court's decision was informed by the principle that in cases with mixed results, the costs should be apportioned in a manner that reflects the relative success of the parties.

The court ordered that Evertz pay the costs of Big Un Limited, subject to a 25% reduction. This decision was based on the court's assessment of the overall outcome and the need to fairly allocate costs between the parties. The court's approach was grounded in the principle of proportionality, ensuring that the costs reflected the partial success achieved by the applicant.