Choo v Zhang (No 2)

In *Choo v Zhang (No 2)*, the New South Wales Court of Appeal considered an application concerning the costs of an appeal and the underlying District Court proceedings. The dispute arose from claims made by the Respondents (Plaintiffs) against the Appellant (Third Defendant) and others. The appeal specifically concerned the apportionment of costs following earlier decisions in the District Court and the appeal itself.

The primary legal issue before the Court of Appeal was whether the usual rule that costs follow the event should be departed from in relation to the Respondents' claims against the Appellant. This involved determining if the issues in the litigation were sufficiently severable to justify a different costs order, particularly in light of the outcome of the appeal.

The Court of Appeal reasoned that the Respondents' claims against the Appellant were largely unsuccessful, and the Appellant had achieved a significant degree of success on appeal. Consequently, the Court determined that it was appropriate to depart from the usual rule. The Court applied the principle that costs orders should reflect the overall success of the parties, and where a party has been substantially successful, their costs should generally be awarded.

The Court ordered that the Respondents' claims against the Appellant in the District Court be dismissed. Furthermore, the Court ordered that there be no order as to the costs of the Respondents' claim in the District Court against the Appellant, meaning each party was to bear their own costs for that part of the litigation. The Respondents were also ordered to pay 70 per cent of the Appellant's costs of the appeal.