C & C (Costs)

This matter concerned an application for costs by the applicant, C & C, following the dismissal of their application for an interlocutory injunction against the respondent. The dispute arose from allegations of breaches of contract and intellectual property infringement. The application was heard by Warnick J in the Supreme Court of Victoria.

The primary legal issue before the Court was whether the applicant should be ordered to pay the respondent's costs of the interlocutory injunction application, despite the respondent having been successful in having the application dismissed. Specifically, the Court had to consider the principles governing the award of costs when an application is dismissed, and whether any exceptional circumstances warranted a departure from the usual order that costs follow the event.

Warnick J applied the general principle that costs should follow the event, meaning the unsuccessful party typically pays the successful party's costs. However, the Court considered the specific circumstances of the application, including the timing of the respondent's offer to settle and the applicant's conduct in pursuing the interlocutory relief. The Court noted that while the applicant's claim was ultimately unsuccessful, their pursuit of the injunction was not entirely without merit at the time it was filed. Nevertheless, the Court found that the respondent's offer to settle, which was not accepted by the applicant, was a significant factor.

Ultimately, Warnick J ordered that the applicant pay the respondent's costs of the interlocutory injunction application, but that these costs be summarily assessed. The Court also ordered that the respondent pay the applicant's costs of a separate, earlier application, to be assessed.