Habib v Nationwide News Pty Ltd (No 2)

Habib, the plaintiff, brought proceedings against Nationwide News Pty Ltd, the defendant, in the Court of Appeal of New South Wales. The dispute concerned an application to vary a costs order made after the determination of a remitted damages issue in a defamation action.

The primary legal issue before the Court was whether a "claim for relief" under rule 36.16(3) of the Uniform Civil Procedure Rules 2005 (NSW) encompassed a costs order. This rule pertains to the power of the court to vary its orders after entry, and the plaintiff sought to rely on it to alter the costs order previously made. The court also considered the principle of the finality of litigation in this context.

The Court of Appeal held that a costs order is not a "claim for relief" within the meaning of rule 36.16(3). Their Honours reasoned that the rule was intended to apply to substantive claims for relief, not to ancillary orders such as costs. To permit variation of costs orders under this rule would undermine the principle of finality in litigation. Consequently, the plaintiff's application to vary the costs order was dismissed.

The notice of motion was dismissed with costs.