Commonwealth of Australia (As Represented By the Department of Infrastructure and Regional Development) v Leahy (No.3)

The Commonwealth of Australia, represented by the Department of Infrastructure and Regional Development, was the applicant in proceedings before Smith J of the Federal Circuit Court of Australia concerning a tenancy dispute with the respondent, Mr. Leahy. The primary dispute involved the determination of costs following earlier proceedings.

The central legal issue before the Court was whether the successful party, the Commonwealth, should be awarded its costs, and if so, how those costs should be calculated. Specifically, the Court was required to consider the application of Part 1 of Schedule 1 to the *Federal Circuit Court Rules 2001* (Cth) in determining the quantum of the costs awarded.

Smith J determined that the Commonwealth was entitled to an award of costs. The Court reasoned that the usual rule that costs follow the event applied, and there were no exceptional circumstances to justify departing from this principle. The Court then proceeded to calculate the costs in accordance with the relevant Rules, indicating that the successful party's entitlement to costs was to be assessed by reference to the prescribed scales. The Court's order for costs was subsequently stayed pending an appeal to the Federal Court of Australia.