Hitchman v Prime Building & Pest Consultants Pty Ltd (No 2)

The case of Hitchman v Prime Building & Pest Consultants Pty Ltd (No 2) involved a dispute over costs in the context of a building dispute. The parties contested the allocation of costs after a dispute resolution process, with neither party achieving a clear victory. The case was heard by the Supreme Court of New South Wales.

The central legal issue before the court was the allocation of costs in circumstances where neither party had successfully resolved the dispute. The court had to consider the general rule that a successful party is entitled to costs, but also the broader discretion available to the Tribunal to award costs. Additionally, the court needed to assess whether the respondent had properly engaged with the dispute resolution process and substantiated its claimed costs.

The court ruled that since neither party had achieved a definitive success in the dispute, and given that the respondent had not properly engaged with the dispute resolution process or substantiated many of its claimed costs, it was appropriate to order that each party bear their own costs. The court emphasised the importance of parties adequately participating in the dispute resolution process and providing proper substantiation for their costs.

In summary, the court ordered that each party would bear their own costs, reflecting the lack of a clear winner and the respondent's inadequate engagement with the process.