Illgen & Yike (No 4)

The matter of *Illgen & Yike (No 4)* concerned an application by the respondent, Illgen, for an order that the applicant, Yike, pay Illgen's costs of the proceeding. The proceeding itself involved a dispute over the interpretation and enforcement of a settlement agreement. The application for costs was heard by Gill J in the Supreme Court of Victoria.

The central legal issue before the Court was whether Yike should be ordered to pay Illgen's costs, notwithstanding that Yike had been successful in its defence of the substantive proceeding. This required the Court to consider the principles governing the award of costs, particularly in circumstances where a party, despite ultimately succeeding, may have conducted the litigation in a manner that warranted a departure from the usual rule that costs follow the event.

Gill J considered the conduct of both parties throughout the litigation. His Honour noted that while Yike had ultimately been successful in resisting Illgen's claims, there were aspects of Yike's conduct that were not entirely free from criticism. However, His Honour found that these criticisms did not reach a level that would justify departing from the general rule that costs should follow the event. The Court applied the principle that costs are generally awarded to the successful party unless there are specific circumstances that warrant a different order, such as unreasonable conduct or a failure to accept a reasonable offer of settlement.

Ultimately, Gill J ordered that Yike pay Illgen's costs of the proceeding, reflecting the fact that Illgen had been the successful party in the substantive dispute.