J Family Motel Group Pty Ltd v Baset Super Pty Ltd (No 2)

The case between J Family Motel Group Pty Ltd and Baset Super Pty Ltd concerned a dispute between a landlord and tenant regarding a contested valuation. The matter was heard in the Supreme Court of New South Wales. The tenant, Baset Super Pty Ltd, sought indemnity costs from the landlord, J Family Motel Group Pty Ltd, following a partial victory in the proceedings. The landlord had leveraged a discrete issue to end the settlement regime established by the Deed and Contract for sale of land and lease. The central legal issues before the court were whether the tenant was entitled to indemnity costs and, if not, whether the costs should be apportioned between the parties based on their respective success in the proceedings.

The court found that the tenant had not demonstrated any delinquency in its conduct of the proceedings, which was a prerequisite for indemnity costs. It was determined that the costs should be apportioned between the parties. The principles outlined in paragraphs [18]-[19] of the judgment were applied to assess the relative success of each party. The landlord succeeded on the discrete issue, but the tenant otherwise achieved its primary objectives in the proceedings. Consequently, the court apportioned the costs based on the parties' relative success, recognising the landlord's victory on the specific issue but also the tenant's overall success in the case.

The final orders of the court reflected the apportionment of costs. The tenant was awarded a proportion of its costs from the landlord, acknowledging the landlord's partial success while also recognising the tenant's overall success in the matter. The court's decision underscored the importance of assessing the relative success of each party in apportioning costs in complex disputes involving multiple issues and outcomes.