Jing Li v Jin Lian Group Pty Ltd (No 2)

The case of Jing Li v Jin Lian Group Pty Ltd (No 2) involved the applicant, Jing Li, who sought various costs orders against the defendant, Jin Lian Group Pty Ltd, following the dismissal of an interlocutory application. The matter was before the Supreme Court of New South Wales. Jing Li's application for costs included an order for indemnity costs to be paid forthwith, based on a special costs order which referenced a Calderbank offer and the defendant's allegedly hopeless interlocutory application. Additionally, Jing Li sought an order for interest on costs from the dates they were paid, pursuant to sections 101(4) and (5) of the Civil Procedure Act 2005 (NSW).

The legal issues before the court centred on whether the costs should be awarded on the ordinary basis or on an indemnity basis. Furthermore, the court had to consider whether costs orders should not be entered pending the determination of winding up proceedings. The court also had to determine if the departure from the default provision under the rules for ordering interest on costs was appropriate, particularly given that the application was not protracted and there was no evidence of costs arrangements or that costs had been paid.

The court held that the costs should be awarded on an indemnity basis, given the special circumstances of the case as outlined in the Calderbank offer and the defendant's hopeless application. However, the court did not make an order for costs to be paid forthwith, and instead deferred the determination of the amount of costs pending the outcome of the winding up proceedings. Regarding the interest on costs, the court found that it was not appropriate to depart from the default provision under the rules to order interest, as the application was not protracted and there was no evidence of costs arrangements or that costs had been paid.

The court made an order that the defendant pay the applicant’s costs of the application on the ordinary basis, with the amount to be assessed if not agreed, and further orders were reserved pending the outcome of the winding up proceedings. The court did not make an order for interest on costs.