Chevron Australia Holdings Pty Ltd v Commissioner of Taxation (No 5)

The case between Chevron Australia Holdings Pty Ltd and the Commissioner of Taxation involved disputes over costs related to two interlocutory hearings and the costs of expert evidence. The Federal Court was tasked with deciding whether the interests of justice required vacating earlier orders regarding costs from these hearings and whether the Commissioner should be barred from claiming costs for certain expert reports, thus requiring each party to bear their own expert costs. The Court also needed to determine whether the Commissioner should be entitled to his costs in relation to the evidence of Mr McCormick and whether the applicant should pay the respondent's costs otherwise.

The court considered the applications made by Chevron Australia Holdings Pty Ltd regarding the costs of the interlocutory hearings. The Court found that the costs order made by Justice Edmonds was appropriate and refused the applicant's application to vacate the orders. In relation to expert evidence, the applicant argued that each party should bear their own costs due to the respondent's unsuccessful contentions. However, the Commissioner submitted that the case did not warrant a departure from the usual position, as he had relied on fewer experts and filed fewer reports than the applicant. The Court held that it was inappropriate to apportion costs on an issue-by-issue basis and that the respondent's arguments were not unreasonably raised. The Court concluded that it would be unjust for the respondent to be excluded from claiming costs for his expert evidence.

The Court dismissed the applications and ordered that each party bear their own costs of the interlocutory application. The Court refused the applicant's application to vacate the order regarding the costs of the directions hearing and the interlocutory hearing. The Commissioner was to bear his own costs in relation to the evidence of Mr McCormick, while the applicant was to pay the respondent's costs otherwise, as agreed or taxed. These orders were made under Rule 39.32 of the Federal Court Rules 2011.