CPR Solutions Mackay Pty Ltd v Zammit Earthmoving Pty Ltd (No 2)

CPR Solutions Mackay Pty Ltd applied for an order to set aside a statutory demand issued by Zammit Earthmoving Pty Ltd. The primary dispute arose from the failure to serve a sufficient copy of the application to set aside the statutory demand within the required time frame. The application was unsuccessful, and Zammit Earthmoving sought an indemnity or, alternatively, a standard costs order. CPR Solutions, on the other hand, sought no order as to costs.

The legal issues the court needed to decide included whether the failure to serve a proper copy of the application was a significant factor in the outcome and whether the applicant's success, coupled with an offer made to the respondent, was sufficient to warrant an indemnity costs order. The court also considered whether the applicant's arguments of a genuine dispute over the debt, the impact of COVID-19 on court operations, and the lack of prejudice to the respondent due to the improper service could counterbalance the respondent's success in the proceedings.

The court concluded that while Zammit Earthmoving's success and their offer to CPR Solutions were factors in their favour, the potential genuine dispute over the debt, the dubious nature of the claim, the impact of COVID-19 on court staff's ability to perform their duties, and the lack of prejudice to Zammit Earthmoving due to the improper service, weighed against making a costs order. The court found that on balance, a costs order should not be made.

The court ordered that no order as to costs be made.