eInduct Systems Pty Ltd v 3D Safety Services Pty Ltd (No 2)

In *eInduct Systems Pty Ltd v 3D Safety Services Pty Ltd (No 2)*, the New South Wales Court of Appeal considered an application by the respondents for a gross costs order. The dispute arose following earlier proceedings where the applicant, eInduct Systems Pty Ltd, had been successful. The respondents, 3D Safety Services Pty Ltd, sought to have the costs awarded to the applicant assessed on a gross sum basis, rather than by way of a detailed bill of costs.

The primary legal issue before the Court of Appeal was whether to grant the respondents' application for a gross costs order. This involved determining whether the circumstances warranted departing from the usual method of detailed assessment. The Court was required to consider principles relating to gross costs orders, particularly when such an application is made after final orders have been entered, and whether the party seeking the order had agreed to a discount. Further considerations included whether the costs relating to the assessment process were disproportionate to the recoverable costs, the complexity of the assessment itself, and the impecuniosity of the party liable for the costs.

The Court of Appeal dismissed the respondents' application for a gross costs order. Their Honours reasoned that the respondents had not established sufficient grounds to justify a departure from the standard procedure of detailed assessment. The Court noted that the application was made late in the process and that the respondents had not demonstrated that the costs of a detailed assessment would be disproportionate or that other exceptional circumstances existed. Consequently, the Court ordered the respondents to pay the applicant's costs of the motion.