Department of Education and Early Childhood Development v A Whole New Approach Pty Ltd

The Department of Education and Early Childhood Development sought to recover costs from A Whole New Approach Pty Ltd, following a successful application to set aside a default judgment. The dispute arose from an unsuccessful tender process for educational services, where the applicant alleged that the defendant had provided misleading information during the tender process. The matter was heard in the County Court of Victoria.

The central legal issue was whether the defendant's conduct warranted an order for costs, given that the application to set aside the default judgment was successful. The court needed to consider the principles of costs in litigation, particularly in cases where a party had acted unreasonably or vexatiously. The court was also required to assess whether the defendant's actions constituted an abuse of the court process, which could justify an award of costs against the defendant.

The court found that the defendant's conduct was vexatious and unreasonable, warranting an award of costs. The court held that the defendant had provided misleading information during the tender process, which led to the entry of a default judgment. The defendant's subsequent application to set aside the default judgment was deemed to be an abuse of the court process, given that the information provided was deliberately misleading. As such, the court ordered the defendant to pay the applicant's costs of the proceeding, including the costs of the application to set aside the default judgment.

The court's final orders included an award of costs to the applicant, to be paid by the defendant. The costs were to be assessed on the standard basis, and the defendant was ordered to pay the applicant's costs of the proceeding, including the costs of the application to set aside the default judgment. The court emphasised the importance of integrity in the tender process and the need to hold parties accountable for any misconduct.