Equititrust Ltd v Geebung Polo Club Pty Ltd (In Liq)

In this case, Equititrust Ltd brought proceedings against Geebung Polo Club Pty Ltd (In Liq) seeking damages for breach of contract. The matter was settled before trial, but Equititrust Ltd subsequently applied for costs of the whole action. The liquidators of Geebung Polo Club Pty Ltd contested the application, arguing that the usual rule was that costs follow the event, and the application should be dismissed. The court was required to determine whether the usual rule for costs should apply or if there were exceptional circumstances that warranted awarding costs of the whole action to Equititrust Ltd.

The court considered the principles governing costs in settled litigation and whether there were exceptional circumstances justifying an award of costs of the whole action. The court noted that the usual rule is that costs follow the event, but there is an exception when it is plain that one party would have succeeded had the matter been fully tried. The court examined the circumstances of the settlement and the merits of the case to determine if there were exceptional circumstances. The court found that there were no exceptional circumstances warranting an award of costs of the whole action to Equititrust Ltd, and the usual rule for costs should apply.

Accordingly, the court dismissed Equititrust Ltd's application for costs of the whole action. The liquidators of Geebung Polo Club Pty Ltd were awarded their costs of the application. The court held that the settlement did not provide grounds for an exception to the usual rule for costs, and the merits of the case did not warrant an award of costs of the whole action to Equititrust Ltd. The court's decision reinforces the principle that costs generally follow the event in settled litigation, unless there are exceptional circumstances that justify an exception.