Helou v M and J Enterprises (No 2)

In this matter, Helou initiated proceedings against M and J Enterprises, seeking to recover costs incurred in relation to interlocutory applications. The Federal Circuit Court of Australia was tasked with determining the appropriate allocation of these costs. The central issue before the Court was whether the applicant was entitled to recover the costs associated with the interlocutory proceedings, as well as whether these costs should follow the event.

The Court considered the relevant legal principles governing the recovery of costs in interlocutory proceedings, particularly focusing on the notion that costs generally follow the event. It examined the circumstances under which costs may be awarded and whether there were any exceptional reasons to deviate from the usual rule. The Court concluded that there were no exceptional circumstances in this case that would warrant a departure from the principle that costs follow the event. Consequently, the Court determined that the applicant was entitled to recover the costs of the interlocutory proceedings.

In light of the Court's reasoning, it found that the applicant was entitled to recover the costs of the interlocutory applications. The Court emphasised that there were no questions of principle involved in the decision, thereby affirming the application for costs. The Court's judgment reinforced the principle that costs in interlocutory proceedings typically follow the event, barring any exceptional circumstances. As a result, the Court ordered that the respondent pay the applicant's costs of the interlocutory applications, in accordance with the established legal framework.