Croc's Franchising Pty Ltd v Alamdo Holdings Pty Ltd (No 3)

The dispute before the Court of Appeal of New South Wales concerned the costs of an appeal and related proceedings between Croc's Franchising Pty Ltd and others (appellants) and Alamdo Holdings Pty Ltd (first respondent). The appeal involved a mixed success for the appellants, who ultimately prevailed on the principal issue, but a cross-claim was remitted for further hearing. The court also considered the release of funds paid into court by the appellants.

The primary legal issues before the court were the appropriate orders for the costs of the appeal and the proceedings concerning an amended commercial list statement, particularly in light of the appellants' mixed success and the remittal of the cross-claim. Additionally, the court was required to determine the disposition of funds paid into court by the appellants, both as a condition of a stay of judgment and as security for the first respondent's costs. The applicability of UCPR r 42.34 to the costs orders was also a consideration.

The court reasoned that despite the mixed success, the appellants' victory on the principal issue warranted a significant portion of their costs of the appeal being awarded to them. However, the remittal of the cross-claim meant that a full costs order in their favour was not appropriate. Consequently, the court ordered the first respondent to pay 70% of the appellants’ costs of the appeal. No order was made for the costs of the proceedings on the amended commercial list statement. Regarding the funds paid into court, the court ordered that the amount paid as a condition of the stay judgment, with accrued interest, be released to the first respondent. Conversely, the amount paid as security for the first respondent's costs, with accrued interest, was ordered to be released to the appellants.