Gordian Runoff Ltd v Heyday Group Ltd [NO.2]

In *Gordian Runoff Ltd v Heyday Group Ltd [NO.2]*, the Court of Appeal of New South Wales considered an application for costs following an appeal that had been dismissed. The appellant, Gordian Runoff Ltd, sought to appeal certain orders, and the second and third respondents, Heyday Group Ltd and another party respectively, were involved in the proceedings. The core of the dispute for the purpose of the costs application revolved around the extent to which the second respondent's interests were affected by the appeal and the circumstances of its appearance at the hearing.

The primary legal issue before the Court of Appeal was to determine which party should bear the costs of the second respondent's appearance at the appeal hearing. Specifically, the court had to assess whether the second respondent was entitled to full indemnity costs or a lesser amount, given that its interests were not directly impacted by the orders sought in the Notice of Appeal and its appearance was primarily to respond to a submission later withdrawn by the third respondent.

The Court of Appeal reasoned that the second respondent's appearance was not necessitated by the appellant's substantive appeal but rather by a submission made by the third respondent, which was subsequently withdrawn. Consequently, the court determined that the second respondent should be awarded costs on the basis of a "submitting appearance," reflecting the limited necessity of its attendance. The court also ordered that the third respondent pay the second respondent's costs of and incidental to its appearance on a specific hearing date. The appellant was ordered to pay the costs of the third respondent on the appeal.