Hardy v Tweed Shire Council

In *Hardy v Tweed Shire Council*, the plaintiffs appealed to the Court of Appeal of New South Wales against an order for costs awarded in favour of a cross-defendant. The dispute concerned the plaintiffs' claim against the Tweed Shire Council, which had been dismissed, and the subsequent costs order made against the plaintiffs in favour of the cross-defendant.

The primary legal issue before the Court of Appeal was whether the primary judge had erred in awarding costs against the plaintiffs in favour of the cross-defendant. This involved considering the circumstances under which a party who is not the defendant in the primary action can be awarded costs against the plaintiff, particularly when the plaintiff's claim against the main defendant has been dismissed.

Meagher JA granted the appeal, effectively overturning the costs order made by the primary judge. The reasoning focused on the specific nature of the cross-claim and the plaintiffs' liability for costs in relation to it. The court determined that the plaintiffs should not be liable for the cross-defendant's costs.

Consequently, the Court of Appeal ordered that the plaintiffs were not to pay the opponents' costs, thereby setting aside the previous order.