J and E Vanjak Pty Ltd v Palmer Street Developments Pty Ltd

The case of J and E Vanjak Pty Ltd v Palmer Street Developments Pty Ltd involved a dispute where the applicant, Vanjak, was ultimately unsuccessful in their application. The primary issue before the court was whether the Court should exercise its discretion to award costs against Ms Huang, the sole director and shareholder of the applicant who appeared on behalf of the applicant. The second issue was whether indemnity costs should be awarded against the applicant and Ms Huang personally.

The court found that costs usually follow the event, and in this case, the applicant was not successful. The court noted that the fact the applicant was not legally represented did not protect Ms Huang from indemnity costs if the circumstances warranted it. The court also dismissed Vanjak’s attempts to impugn the judgment or raise further evidence, finding these matters irrelevant to the determination of the appropriate costs order. The court held that Vanjak should pay the costs of the second respondents on a standard basis. As for the possibility of extending the costs order to Ms Huang personally, the court recognised that its discretion extends to awarding costs against non-parties under certain conditions, such as where the non-party has played an active part in the litigation, has an interest in the subject matter of the litigation, and the party is insolvent, and if the interests of justice favour such an order. However, the court concluded that non-party costs orders are exceptional and that directors of companies will not be subject to them merely for promoting the company’s interests in litigation.

The court ordered that Vanjak pay the costs of the second respondents of the application on a standard basis. The court did not make any order extending the costs to Ms Huang personally.