Eastern Garden Pty Ltd v Sangster & Ors (No 2) No. Scciv-02-701

Eastern Garden Pty Ltd v Sangster & Ors (No 2) [2004] SASC 66 involved a dispute between the plaintiff, Eastern Garden Pty Ltd, and the defendants, Sangster, Stone, and Holmes. The plaintiff sought damages for breach of contract and misleading or deceptive conduct related to a leasing arrangement. The plaintiff was successful against the first defendant, Sangster, but failed against the second and third defendants, Stone and Holmes. The court was tasked with determining the appropriate allocation of costs among the parties, including whether indemnity costs should be awarded against the plaintiff for the costs incurred by the second and third defendants.

The legal issues before the court were whether the plaintiff should be ordered to pay costs to the second and third defendants and, if so, whether those costs should be awarded on a party and party basis or on an indemnity basis. The court also considered whether a Bullock order should be made against the first defendant to compensate the second and third defendants for costs incurred due to the plaintiff's suit.

The court found that the plaintiff's case against Holmes was not justified and that several allegations in the Statement of Claim were unfounded. The court held that this was a special case where Holmes was improperly brought into litigation. Therefore, the plaintiff should pay Holmes' costs on an indemnity basis. The court also found that the suit against Stone and Holmes was unreasonable and that there was no basis to make a Bullock order against Sangster. Accordingly, the plaintiff was ordered to pay Stone's costs on a party and party basis, and Sangster was ordered to pay the plaintiff's costs on a party and party basis.

In summary, the court awarded costs to the plaintiff against Sangster, required the plaintiff to pay Stone's costs on a party and party basis, and ordered the plaintiff to pay Holmes' costs on an indemnity basis. The court declined to make a Bullock order against Sangster.