Cagnani & Anor & Stankic (No 2)

In *Cagnani & Anor v Stankic (No 2)*, the Supreme Court of New South Wales was asked to determine whether a party who had been granted leave to amend their statement of claim was entitled to further costs orders in relation to that amendment. The dispute concerned an application for leave to amend a statement of claim, with the applicants seeking to introduce new allegations of fraud.

The primary legal issue before the Court was whether the applicants, having been granted leave to amend their statement of claim, should be awarded costs in relation to that application. Specifically, the Court had to consider the principles governing the award of costs when leave to amend pleadings is granted, particularly in circumstances where the amendment introduces new and significant allegations.

McClelland J considered the general rule that costs follow the event, but noted that this rule is not absolute, especially in interlocutory applications. His Honour reasoned that the applicants had been successful in obtaining leave to amend, which suggested they should ordinarily be entitled to costs. However, the Court also took into account the nature of the amendments sought and the potential impact on the litigation. The Court ultimately determined that the costs of the application should be reserved, meaning they would be determined at a later stage of the proceedings, likely at the final hearing, to allow for a fuller assessment of the overall merits and the contribution of the amendment to the final resolution of the case.