J D M Investments Pty Ltd v Toddern Pty Ltd

J D M Investments Pty Ltd brought an action against Toddern Pty Ltd in the Supreme Court of New South Wales, seeking compensation for alleged breaches of contract. The central issue was whether the defendant was liable for damages incurred by the plaintiff due to the failure to deliver certain goods under the terms of a contract. Additionally, the plaintiff sought an order for costs, arguing that the claims were distinct and warranted a departure from the general rule that costs follow the event.

The court considered whether the claims were sufficiently distinct to justify a deviation from the usual rule that costs follow the event. The plaintiff argued that the claims involved separate breaches of contract, each with distinct factual and legal issues, justifying separate consideration. The defendant countered that the claims were interconnected and should not be treated as distinct for the purpose of costs. The court examined the relevant principles governing costs in cases where claims are considered distinct, including the nature and extent of the claims, the commonality of issues, and the extent of the work required to resolve each claim.

After careful consideration of the arguments and the relevant principles, the court determined that the claims were not distinct enough to warrant a departure from the general rule. The court found that while there were separate breaches of contract, the factual and legal issues underlying the claims were closely related, and the work required to resolve each claim was not significantly disproportionate. Consequently, the court ruled that costs should follow the event, with the plaintiff ordered to bear the costs of the unsuccessful claim. The court emphasised that the distinction between claims must be clear and substantial to justify a departure from the general rule.