Gunns Limited v Alishah (No 3)

The Gunns Limited v Alishah (No 3) case involved a dispute between Gunns Limited and Alishah regarding the recovery of costs in interlocutory proceedings. The matter was before the court to determine the appropriate circumstances under which costs awarded to one party should be payable forthwith, departing from the usual rule that such costs are not payable immediately. The central issue was whether the usual rule that costs are not payable forthwith should be departed from, and if so, whether there is a threshold test of exceptional circumstances or if the court could order otherwise where it was in the interests of justice.

The court held that the usual rule that costs are not payable forthwith could be departed from without the need for a threshold test of exceptional circumstances. The court had the discretion to order that costs should be payable forthwith where it was in the interests of justice to do so. The court reasoned that the usual rule was not absolute and could be modified based on the specific circumstances of the case and what was just and equitable. The court's discretion in such matters was broad and should be exercised with a view to achieving a fair outcome.

Given the court's broad discretion in ordering the payment of costs forthwith, the decision in this case provides guidance to parties and courts in similar situations. The court emphasised that while the usual rule is not to pay costs forthwith, there are circumstances where immediate payment may be appropriate. The court's decision in this case ensures that the interests of justice are upheld by allowing for flexibility in the payment of costs where necessary. The final orders of the court will reflect the specific circumstances of the case and the court's determination on the appropriate timing of cost payments.