Broadway Plaza Investments Pty Ltd v Broadway Plaza Pty Ltd; In the matter of Combined Projects (Arncliffe) Pty Ltd (No 3)

The case involved Broadway Plaza Investments Pty Ltd and Broadway Plaza Pty Ltd, with a third party, Combined Projects (Arncliffe) Pty Ltd, also being part of the dispute. The nature of the dispute centred on a claim for costs following a litigation process. The matter was brought before the Federal Court of Australia.

The legal issues that the court was required to decide revolved around the nature of costs orders that should be made in the circumstances. Specifically, the court had to determine whether a lump sum costs order should be made, or if the more traditional gross costs order was appropriate. The court also considered whether the general rule that costs follow the event could be departed from in this case, and whether a special costs order might be warranted.

In delivering its decision, the court noted that lump sum costs orders are generally appropriate when the quantum of costs is easily ascertainable, and the parties are in agreement on the amount. However, the court found that in this case, there was a degree of uncertainty regarding the exact costs, and therefore, a gross costs order was more appropriate. The court further determined that the general rule that costs follow the event should not be departed from, as there were no exceptional circumstances that warranted a special costs order. Ultimately, the court ordered the party who was unsuccessful in the litigation to pay the legal costs of the successful party, but left the precise calculation of those costs to be determined by the parties or a costs master.

No further orders were made by the court beyond the costs determination.