Ciprijanovic v Schindler Lifts Australia Pty Ltd (No 2)

In this matter, the plaintiff, Ciprijanovic, sought an order for costs against Schindler Lifts Australia Pty Ltd, the defendant, following the discontinuance of proceedings. The dispute originated from an industrial injury suffered by the plaintiff, which led to an action against the defendant in the Federal Circuit Court. The plaintiff subsequently discontinued the proceedings. The defendant, however, had failed to comply with specific court orders, prompting the plaintiff to apply for an order that the defendant pay the plaintiff's costs due to this non-compliance. The case was heard by the Federal Court, which was tasked with determining whether the plaintiff was entitled to costs despite the discontinuance of proceedings and whether there was any reason to depart from the general rule regarding costs in such circumstances.

The central legal issues revolved around the application of the general rule that costs do not follow the cause in cases where the plaintiff discontinues proceedings. The court needed to assess if there were exceptional circumstances justifying an order for costs against the defendant. This included examining the reasons behind the plaintiff's discontinuance and whether the defendant's non-compliance with court orders constituted sufficient grounds to warrant such an order. The court was also required to determine if there was any point of general principle that should be considered in making its decision.

In its judgment, the court found that the plaintiff's discontinuance of proceedings was not a bar to an order for costs in this case. The court emphasised that the general rule regarding costs following the cause was not absolute and could be departed from in appropriate circumstances. The non-compliance by the defendant with specific court orders was deemed significant enough to justify such a departure. The court concluded that there were no overriding reasons to prevent the plaintiff from recovering costs. Consequently, the application for an order that the defendant pay the plaintiff's costs was successful.