Hume Plasterboard Pty Ltd v Best Interiors Aust Pty Ltd and Ors (No.2)

The plaintiff, Hume Plasterboard Pty Ltd, commenced proceedings against the defendants, Best Interiors Aust Pty Ltd and two others, in the Supreme Court of New South Wales. Hume Plasterboard alleged that the defendants had breached a contract for the supply of plasterboard. The dispute centred on the quality of the materials supplied and the subsequent costs of rectification. The court was tasked with determining liability, the extent of damages, and the appropriate allocation of costs between the parties.

The primary legal issues before the court were whether certain costs incurred by the successful defendants should be disallowed due to non-compliance with procedural directions, whether the unsuccessful defendant’s costs should be payable on an indemnity basis, and whether a Bullock order should be made. The court had to consider the relevant case law and statutory provisions, particularly the Uniform Civil Procedure Rules and the principles of costs in equity.

The court found that the successful defendants had not strictly complied with certain procedural directions, which resulted in some costs being disallowed. However, the court exercised its discretion to allow a proportion of the non-compliant costs, taking into account the overall circumstances of the case. Regarding the unsuccessful defendant, the court held that costs should be payable on an indemnity basis due to the nature of the litigation and the unsuccessful defendant’s conduct. Finally, the court determined that a Bullock order was appropriate, given the significant disparity in legal representation and the overall fairness of the proceedings.

The final orders of the court included the disallowance of certain costs for the successful defendants, the imposition of indemnity costs on the unsuccessful defendant, and the making of a Bullock order. The specific details and quantum of these orders are set out in paragraph 27 of the judgment.