Doman v Young Scholars @Glebe Pty Ltd (Costs)

The case involved a dispute between the plaintiffs, Doman, and the defendants, Young Scholars @Glebe Pty Ltd. The plaintiffs sought damages for breaches of contract and misrepresentation in relation to the lease of a property. The primary dispute was whether a rent review had occurred and whether the plaintiffs had suffered damages as a result of the alleged breaches. The case was heard in the Supreme Court of New South Wales. The plaintiffs were successful in their action but failed to establish that a rent review had occurred and a number of their claimed heads of damage. The defendants applied for a reduction in the plaintiffs' entitlement to costs due to the unsuccessful aspects of the case.

The legal issues before the court were whether the plaintiffs' failure to establish certain elements of their case justified a reduction in their entitlement to costs and, if so, to what extent. The court considered whether the plaintiffs' failure to discover adequately and their unsuccessful claims impacted their entitlement to costs. The court also had to determine the appropriate percentage of costs to which the plaintiffs were entitled. The court held that the circumstances justified a reduction in the plaintiffs' entitlement to costs. The court found that the plaintiffs' failure to discover adequately and their unsuccessful claims warranted a reduction in their entitlement to costs. However, the court did not consider it appropriate to reduce the plaintiffs' costs to the extent that they would not be adequately compensated for the work done.

The court ordered that the defendants were to pay 80% of the plaintiffs' costs on the ordinary basis. This included all costs except those attributable to the provision of the explanation for the plaintiffs' failure to discover adequately and the costs of, and incidental to, the submissions on costs. The court's decision reflects the need to balance the plaintiffs' right to be adequately compensated for the work done with the defendants' right to not pay for unsuccessful aspects of the case. The outcome ensures that the plaintiffs are compensated for the work done while also recognising the defendants' position regarding the unsuccessful aspects of the case.