De Rucci International Pty Ltd v Zhu (Costs)

In the Federal Circuit Court, De Rucci International Pty Ltd, a company involved in the sale of sporting goods, sought costs against Zhu, who had been ordered to pay damages following a breach of contract. The initial application for a stay of enforcement of the judgment was dismissed, and the second application followed a similar outcome. Subsequently, De Rucci International sought a gross sum costs order.

The court had to determine whether the circumstances justified a departure from the usual practice of assessing costs on an itemised basis. The legal issue was whether the unique circumstances of the case warranted a gross sum costs order. The court considered the factors relevant to such an order, including the nature and complexity of the case, the conduct of the parties, and the proportionality of the costs sought in relation to the amount of the judgment.

The court found that while the case was complex, involving international elements and contractual disputes, there were no exceptional circumstances that warranted a departure from the usual method of assessing costs. The court also noted that the costs sought, while substantial, were not disproportionate to the amount of the judgment. Consequently, the court dismissed the application for a gross sum costs order, confirming that costs would be assessed on an itemised basis.

The court's decision affirmed the principle that gross sum costs orders are reserved for exceptional cases and should not be granted lightly. The court emphasised that the usual practice of assessing costs on an itemised basis was appropriate in this matter, and the application for a gross sum costs order was dismissed.