Dlakic v MLC Limited (No 2)

The case of Dlakic v MLC Limited (No 2) involved a dispute between Dlakic and MLC Limited concerning the assessment of costs in a legal matter. The case was heard in the Federal Court of Australia. Dlakic, the plaintiff, sought an order for gross sum costs, arguing that the amount involved was easily ascertainable and that it was in the interests of justice to award such costs. MLC Limited, the defendant, opposed the application, contending that the court should not exercise its discretion to award gross sum costs without a detailed itemised assessment.

The primary legal issue the court needed to decide was whether the Federal Court had the power to award gross sum costs under section 98(4)(c) of the Federal Court of Australia Act, and if so, whether such an order was appropriate in the circumstances of this case. The court considered the criteria set out in the legislation and the factors that should be taken into account when deciding whether to award gross sum costs. This included the nature of the case, the amount involved, and the interests of justice.

The court held that section 98(4)(c) did indeed provide the necessary power to award gross sum costs in cases where the amount involved could be easily ascertained. However, the court also noted that the decision to award such costs was discretionary and required consideration of the interests of justice. In this case, the court found that while the amount involved was ascertainable, the interests of justice did not favour the award of gross sum costs. The court preferred a detailed itemised assessment to ensure transparency and fairness in the costs awarded.

As a result, the court dismissed the plaintiff's application for a gross sum costs order and directed that the costs be assessed by way of a detailed itemised assessment. This decision underscores the importance of considering all relevant factors when exercising the court's discretion in awarding costs.