Insurance Australia Limited t/as NRMA v Richards (No 2)

Insurance Australia Limited, trading as NRMA, brought an action against Richards in the Supreme Court of New South Wales. The dispute centred on the interpretation of statutory provisions and the allocation of costs. The court had to decide whether to depart from the usual order under the Uniform Civil Procedure Rules 2005 (NSW) that costs follow the event, and if so, whether to order that each party bear their own costs. A further issue was whether the defendant should retain the benefit of a previous consent costs order made by the Personal Injury Commission. Additionally, the court had to determine if the defendant was eligible for a certificate under the Suitors’ Fund Act 1951, given that the proceedings were "in the nature of an appeal."

The court found that a departure from the usual order of costs was warranted because the statutory construction issue was advanced for the first time in these proceedings and ultimately failed. The court ordered that each party bear their own costs, but apportionment was appropriate given the mixed outcome of the proceedings. The defendant was ordered to bear half of the plaintiff’s costs. Regarding the retention of the benefit of the previous consent costs order, the court held that the claimant's entitlement to costs was not dependent on the outcome of the proceedings, and as the insurer did not challenge the retention of the benefit of the order, it was granted in favour of the defendant. Finally, the court determined that the defendant was eligible for a certificate under the Suitors’ Fund Act 1951, as the proceedings were "in the nature of an appeal" and the Personal Injury Commission was considered a "court" for the purposes of the Act. The requirements of section 6 were satisfied, and a certificate was granted.

The court's final orders included that each party bear their own costs, with apportionment as specified, the defendant to retain the benefit of the previous consent costs order, and the grant of a certificate under the Suitors’ Fund Act 1951.