Coastline Constructions (Aust) Pty Ltd v Kakavas

In Coastline Constructions (Aust) Pty Ltd v Kakavas, the Federal Court considered the allocation of costs between the parties in a case involving multiple issues. The primary dispute concerned breaches of contract and associated damages. The court was tasked with determining the appropriate allocation of costs, particularly in light of the fact that one party had succeeded on some issues while failing on others.

The legal issues before the court included whether the general rule that costs follow the event should be applied, and if there were circumstances that would justify a departure from this principle. The court also had to consider the implications of a party achieving nominal success on a cross claim and how this should impact the costs order. The primary focus was on whether the successful party should be granted costs against the unsuccessful party and whether the unsuccessful party should be required to pay the successful party's costs of the cross claim.

The court found that the general rule that costs follow the event should be adhered to in this case. Despite the plaintiff's success on some issues and failure on others, the court held that there were no exceptional circumstances to warrant a departure from this principle. The court emphasised that each party should bear their own costs, including those associated with the cross claim. This approach ensured that the allocation of costs reflected the overall outcome of the litigation, with neither party receiving an undue financial advantage or disadvantage. Consequently, the court ordered that each party bear their own costs.