In the matter of Gunyahweh Pty Limited (No 2)

In the Federal Court of Australia, Gunyahweh Pty Limited (No 2) was a dispute involving Gunyahweh Pty Limited as the plaintiff and several defendants. The plaintiff sought relief against the defendants on the grounds of oppression, unfair prejudice, and other related claims. The defendants contested the claims, leading to a complex and extensive litigation process.

The court had to determine whether the general rule that costs follow the event should apply in this case, given the circumstances. Both parties presented extensive evidence regarding unpleaded allegations of criminality. However, a significant part of both parties' cases was based on false premises. The court had to consider the disproportionate nature of the costs incurred relative to the monetary amounts at stake. Additionally, the court had to assess whether the deficiencies in both parties' evidence meant that an adverse finding of oppression could not be remedied.

The court found that the evidence presented by both parties was of questionable reliability and that the costs incurred were grossly disproportionate to the monetary amounts in dispute. Given that an adverse finding of oppression could not be remedied due to these deficiencies, the court decided that no order as to costs should be made. The court recognised the complexity and volume of evidence but ultimately determined that making a costs order would not be appropriate under the circumstances.

No specific orders regarding costs were made, reflecting the court's view that the general rule of costs following the event should not apply in this instance.