Eat Media Pty Ltd v Mulready Media Pty Ltd (No 2)

The case of Eat Media Pty Ltd v Mulready Media Pty Ltd (No 2) arose from a dispute between two small businesses regarding the resolution of costs incurred in litigation. The parties had previously engaged in proceedings where a costs order was made in favour of the applicant, Eat Media Pty Ltd, amounting to $67,832.14. The matter then proceeded to the resolution of these costs, which led to a Deed being signed on 30 March 2010, setting out an agreed costs award of $45,000 to be paid in instalments. The case before the court involved the enforcement of this Deed through an order under Order 62 Rule 4(2)(c) of the Supreme Court Civil Procedure Rules 2005 (Qld).

The central legal issue before the court was whether to grant an order enforcing the payment of costs as agreed upon in the Deed. This required consideration of the principles underpinning the enforcement of such agreements and whether the delay in seeking the court's order was justified under the circumstances. The court had to assess the appropriateness of the costs claimed, the fairness of the agreed payment plan, and the procedural steps taken by the parties in reaching the agreement.

The court found that the parties had diligently negotiated the terms of the Deed, which provided a clear and fair basis for resolving the costs dispute. The delay in approaching the court was attributed to the need to first determine the existence and basis of any costs order before addressing the quantum. The court acknowledged that the costs claimed were logical, fair, and reasonable given the extent of the proceedings. The court concluded that the enforcement of the Deed through an order under Order 62 Rule 4(2)(c) was appropriate, as it provided a means to achieve finality and avoid the uncertainty and expense of a formal taxation process. The court also dispensed with the requirement of Practice Notice CM 4 due to the unique circumstances of the case.

The court ordered that the Deed be enforced, and the respondent, Mulready Media Pty Ltd, was directed to pay the agreed instalments as per the terms of the Deed. The order aimed to provide certainty and finality to the parties, facilitating the resolution of the costs dispute in a manner that was practical and efficient.