Jackson Power Real Estate Pty Ltd v Jones (No 2)

The case of Jackson Power Real Estate Pty Ltd v Jones (No 2) involved a dispute between the plaintiff, Jackson Power Real Estate, and the defendant, Jones. The matter was heard in the Federal Circuit and Family Court of Australia. The primary issue before the court was the allocation of costs between the parties in the context of the plaintiff's successful application to set aside a default judgment and subsequent proceedings for the recovery of costs.

The court was required to determine the application of the general principle that costs follow the event, and whether any discretion exercised by the primary judge was appropriate. Specifically, the court needed to assess whether the primary judge's decision to award costs in favour of the plaintiff was justified and whether the principle of costs following the event was correctly applied.

In delivering the judgment, the court found that the primary judge had exercised their discretion appropriately in awarding costs to the plaintiff. The court acknowledged the general rule that costs follow the event, but also recognised the primary judge's discretion to order costs in exceptional circumstances. The court found that the plaintiff's successful application to set aside the default judgment was an exceptional circumstance warranting the award of costs. The court concluded that the primary judge's decision was not only justified but also aligned with the principles governing the allocation of costs in such cases. Consequently, the appeal was dismissed.

The court did not make any specific orders beyond affirming the primary judge's decision on costs. The primary judge's order that the defendant pay the plaintiff's costs of the application to set aside the default judgment and the subsequent proceedings was upheld.