In the matter of Sunnya Pty Ltd

In the matter of Sunnya Pty Ltd, the plaintiffs sought damages for breaches of contract and associated torts against the defendants. The case was heard in the Supreme Court of Victoria, where the judge delivered judgment on all questions except quantum of damages. The plaintiffs claimed substantial costs incurred during the proceedings, which the defendants sought to defer until the quantum of damages was determined. The court ruled that the costs should not be deferred, as the plaintiffs had already incurred significant expenses, and the defendants had not demonstrated a compelling reason to delay the determination of costs.

The legal issues before the court involved the apportionment of costs among the parties, given the mixed outcome of the proceedings. Two of the plaintiffs' claims were dismissed, but they were significant and separable from the remaining claims. The remaining claims, which were interrelated, were successful, leading to an overall victory for the plaintiffs. The court found that the costs should be apportioned between the claims, reflecting the mixed outcome. Given the significant separable claims that failed, the court ruled that the costs should not be entirely borne by the plaintiffs but should be distributed in a manner that reflects the mixed outcome.

The court further addressed the issue of whether the defendants should pay the plaintiffs' costs on an ordinary or indemnity basis. Some defendants had relied on fabricated documents and false evidence, causing delays during the hearing. This conduct increased the plaintiffs' costs. The court held that these defendants should pay the plaintiffs' costs on an indemnity basis due to their improper conduct. The court emphasised the importance of discouraging such conduct in future litigation.

The final orders of the court included the refusal to defer costs until the determination of quantum, the apportionment of costs among the claims, and the imposition of indemnity costs on certain defendants for their improper conduct during the proceedings.