Commonwealth of Australia v Saadat & Ors

The Commonwealth of Australia appealed to the Full Court of the Supreme Court of South Australia against orders made by a single judge concerning costs in interlocutory proceedings. The respondents, Saadat & Ors, had sought an adjournment of proceedings and leave to amend their pleadings. The single judge had granted these applications and ordered the Commonwealth to pay the respondents' costs of and incidental to the applications. The Commonwealth's appeal challenged the decision to award these costs.

The central legal issue before the Full Court was whether the single judge had erred in law by ordering the Commonwealth to pay the respondents' costs of the interlocutory applications, specifically in circumstances where the applications were granted. The appeal also raised questions about the principles governing the award of costs in interlocutory matters, particularly concerning adjournments and amendments, and whether the single judge had properly exercised their discretion in making the costs order.

The Full Court held that the single judge had erred in law. It reasoned that the general rule is that a party seeking an adjournment or leave to amend pleadings bears the costs of such applications, unless there are exceptional circumstances justifying a departure from this rule. The Court found that no such exceptional circumstances were present in this case, and therefore, the order for the Commonwealth to pay the respondents' costs was not justified. The Court applied the principle that costs follow the event in interlocutory applications of this nature, meaning the party making the application should generally bear their own costs and those of the other party.

Consequently, the Full Court allowed the appeal and set aside the costs order made by the single judge. The Court ordered that the respondents pay the Commonwealth's costs of and incidental to the interlocutory applications.