Firebird Global Master Fund II Ltd v Republic of Nauru (No 2)

The High Court of Australia considered an appeal concerning the appropriate costs order following a determination where the appellant, Firebird Global Master Fund II Ltd, had succeeded on some issues but ultimately failed in its overall appeal against the Republic of Nauru.

The central legal issue before the Court was how to apportion costs when an appellant achieves partial success on appeal but does not secure the overall outcome sought. Specifically, the Court had to determine whether an order apportioning costs between the parties or an order that each party bear their own costs was the more appropriate disposition in these circumstances, having regard to the principle that "costs follow the event".

The Court reasoned that while the appellant had achieved success on certain discrete points, these successes did not alter the fundamental outcome of the appeal, which was against the appellant. The general rule that costs follow the event, meaning the unsuccessful party pays the successful party's costs, was therefore to be applied. The partial success on specific issues was not of such significance as to warrant a departure from this general rule or to justify an apportionment of costs.

Consequently, the High Court ordered that the appellant, Firebird Global Master Fund II Ltd, pay the respondents' costs of the appeal to the High Court.