Grubisa v Zhou (No 2)

The applicants, Grubisa, sought to recover costs under a gross sum costs order from the respondent, Zhou. The case was heard in the Federal Circuit Court of Australia, with the appeal being heard by the Full Court. The applicants sought to recover legal costs from the respondents after the applicants' claim for damages was dismissed on the basis of limitation. The applicants argued that a gross sum costs order should be made in their favour, despite the limitation defence not being raised until late in the proceedings.

The court had to determine whether a gross sum costs order was appropriate in the circumstances, considering that the limitation defence was not raised until late in the proceedings. The court noted that there was no question of principle preventing the making of a gross sum costs order, even where a limitation defence is raised late. The court also considered the applicants' conduct in pursuing the claim, despite the risks of limitation, and the conduct of the respondents in delaying the raising of the limitation defence.

The Full Court concluded that it was appropriate to make a gross sum costs order in favour of the applicants. The court found that the applicants' pursuit of the claim was not unreasonable, and the respondents' delay in raising the limitation defence did not absolve them of liability for costs. The court also noted that the making of a gross sum costs order was not disproportionate to the conduct of the parties, and that the applicants were entitled to recover their costs. The Full Court made a gross sum costs order in favour of the applicants, in the sum of $72,000.