Bookarelli Pty Ltd v Katanga Developments Pty Ltd

Bookarelli Pty Ltd (the applicant) sought judicial review of a decision of the District Court of New South Wales. The dispute concerned the assessment of costs following litigation where the applicant had succeeded against one defendant but failed against another. The District Court had heard an appeal from a Costs Review Panel concerning the quantum of costs awarded.

The primary legal issue before the Court of Appeal was whether the District Court had committed a jurisdictional error by failing to apply the so-called "rule of thumb" in its assessment of costs. This rule of thumb, in the context of a plaintiff succeeding against one defendant but failing against another, generally suggests that the plaintiff should recover a proportion of their costs from the unsuccessful defendant and bear their own costs in relation to the successful defendant.

The Court of Appeal held that the District Court had not erred in its approach. Their Honours reasoned that the "rule of thumb" is not a rigid legal principle that must be applied in all circumstances. Instead, it is a guideline or a starting point for consideration by the court or costs assessor. The District Court had properly considered the relevant principles of costs assessment, including the need to apportion costs where a plaintiff has had mixed success. The court found that the District Court's decision was within its jurisdiction and that no jurisdictional error had occurred.

Consequently, the Amended Summons filed by the applicant was dismissed. The applicant was ordered to pay the respondent's costs of the proceedings in the Court of Appeal, with a further direction for the applicant to make submissions on whether those costs should be assessed on an indemnity basis.