Gavriliuc v Geron

The case of Gavriliuc v Geron involved an application by the defendant, Mr. Geron, to allow a costs review by the Costs Court out of time. The applicant had previously obtained a judgment for his costs under the Fair Trading Act 1999 (Vic). The application was brought pursuant to section 3.4.38(6) of the Legal Profession Act 2004 (Vic), which allows the court to grant relief from the time limits for the making of an application if it considers it just and fair to do so. The primary legal issue was whether it would be just and fair for the application to be dealt with by the Costs Court, given the significant delay and the reasons for the delay in making the application.

The court considered the principles established in prior case law, which emphasise that the decision to allow a costs review out of time is discretionary and must be exercised judiciously. It acknowledged that while there had been a substantial delay in bringing the application, the applicant had provided a satisfactory explanation for the delay, including the reliance on legal advice that the application would not succeed. The court also noted the significant prejudice that would be suffered by the applicant if the application were dismissed due to the delay. Weighing these factors, the court found that it was just and fair to grant the application and permit the costs review to proceed.

Consequently, the court allowed the application for the costs review to be dealt with out of time. The decision underscored the importance of balancing the need to enforce time limits with the need to ensure fairness in the administration of justice. The case highlights the court’s willingness to consider explanations for delays and the potential consequences of denying an application on the basis of timeliness alone. This decision provides useful guidance for practitioners dealing with similar issues in future cases.