Chinese Cultural Club v Director of Liquor and Gaming

The Chinese Cultural Club, an incorporated association, was the applicant in a case heard by the Court of Appeal against the Director of Liquor and Gaming. The dispute concerned the merits of an application made by the club to the Licensing Court to revoke a suspension of its liquor licence. The Court of Appeal had earlier dismissed an appeal by the club against the Licensing Court's decision to uphold the suspension of its liquor licence. The club sought an order that the Director pay the costs of its application to the Court of Appeal. The Director, in turn, sought an order that the club pay the costs of its application to the Court of Appeal. The parties agreed that the central issue for determination was the correctness of the principles applied by the Licensing Court in relation to the award of costs against the club.

The Court of Appeal considered the principles to be applied when costs orders are made. It held that the Licensing Court had applied the wrong test in determining the costs order. The Court found that the Licensing Court had failed to consider the relevant costs principles and had substituted its own discretion for that of the primary judge. The Court of Appeal also held that the club had not acted unreasonably in pursuing its application to the Court of Appeal and that the Director's appeal should be dismissed with costs to follow the event.

The Court of Appeal allowed the appeal, remitted the matter to the Licensing Court for rehearing, and ordered that the club be entitled to its costs of the appeal against the Director. The Court also ordered that the Director pay the club's costs of the Director's appeal against the club. The Court of Appeal emphasised the importance of the correct application of costs principles by tribunals and courts, particularly when the outcome of proceedings may be significant to a party. The Court held that it was appropriate to make orders for costs to follow the event in the circumstances of this case.