Borg v The Owners of Strata Plan 64425 (Costs)

The matter before the court involved a dispute between the plaintiff, Borg, and the defendants, the owners of Strata Plan 64425, over various applications for special costs orders. Borg sought a Sanderson order, a Bullock order, and indemnity costs following the service of offers of compromise, as well as an order that interest run on unpaid party/party costs. The dispute arose from an earlier proceeding where Borg had been successful in a claim against the defendants.

The legal issues before the court centred on the interpretation and application of the relevant case law concerning the orders sought by Borg. Specifically, the court had to determine whether the defendants should be ordered to pay the plaintiff's costs, as well as the successful defendant's costs, under a Bullock order, or if a Sanderson order was more appropriate, which would require the defendants to pay the successful defendant's costs directly. Additionally, the court had to consider whether an order for indemnity costs and interest on unpaid party/party costs was warranted.

The court considered the principles established in prior cases, such as Gould v Vaggelas, and the definitions of a Bullock and Sanderson order provided in Bullock v London General Omnibus Co and Sanderson v Blyth Theatre Co, respectively. The court noted that a Sanderson order was designed to eliminate unnecessary administrative and procedural steps, as highlighted in Coombes v Roads and Traffic Authority (No 2). After carefully examining the circumstances of the case, the court decided that a Bullock order was the most appropriate course of action, as it would require the defendants to reimburse the plaintiff for any costs they had paid to the successful defendant. The court also found that an order for indemnity costs and interest on unpaid party/party costs was justified.

In conclusion, the court ordered that the defendants pay the plaintiff by way of reimbursement any costs the plaintiff had paid to the successful defendant, in accordance with a Bullock order. Additionally, the court ordered that the defendants pay indemnity costs and that interest run on unpaid party/party costs from the date of the judgment until the date of payment.