Compass Group Education Hospitality Services Pty Ltd v Commissioner of State Revenue

The case between Compass Group Education Hospitality Services Pty Ltd and the Commissioner of State Revenue involved a dispute regarding the costs associated with an appeal. The appeal, initiated by the appellants, was ultimately dismissed by the court. As a result, the Commissioner sought to recover his costs associated with the appeal from the appellants. The appellants contended that any costs order against them should be limited to 50% of the Commissioner's costs, citing unnecessary delays and additional costs incurred due to the Commissioner's late concession and failure to raise a particular argument until late in the proceedings. They argued these factors warranted a reduction in the costs ordered against them.

The legal issue before the court was whether the costs should follow the event, in line with the general rule that costs follow the event. The appellants' arguments hinged on the notion that the Commissioner's actions contributed to the unnecessary prolongation and increased costs of the appeal, which should be reflected in the costs order. The court had to weigh these submissions against the principle that costs generally follow the outcome of the litigation, without necessarily penalising the losing party for the actions of the prevailing party.

In considering these arguments, the court determined that while the Commissioner's late concession and delay in raising a successful argument did contribute to some additional costs, these factors did not warrant a reduction to 50% of the costs. Instead, the court exercised its discretion and ordered the appellants to pay 85% of the Commissioner's costs of the appeal. This decision balanced the need to adhere to the general principle that costs follow the event with the recognition of the appellants' arguments regarding unnecessary costs and delays.