Johnson v Synnex Australia; Johnson v Leader Computers (No 3)

The Full Court of the Supreme Court of South Australia heard an appeal concerning the costs orders made in earlier proceedings involving Mr. Johnson and Synnex Australia Pty Ltd and Leader Computers Pty Ltd. Mr. Johnson had brought proceedings against both companies, and the appeal concerned the costs awarded against him in those proceedings.

The central legal issue before the Full Court was whether the primary judge had erred in making certain costs orders against Mr. Johnson. Specifically, the appeal questioned the discretion exercised by the primary judge in awarding costs on an indemnity basis and in ordering Mr. Johnson to pay the costs of Synnex Australia and Leader Computers in relation to particular interlocutory applications.

The Full Court considered the principles governing the exercise of discretion in awarding costs, particularly in the context of indemnity costs. It was held that indemnity costs are an exception to the general rule that costs follow the event and should only be awarded in circumstances where there are good reasons to depart from that rule. The Court found that the primary judge had not adequately articulated or demonstrated the necessary reasons to justify the award of indemnity costs against Mr. Johnson. Furthermore, the Court reviewed the specific interlocutory applications and the conduct of the parties in relation to them to determine if the costs orders made were appropriate.

Ultimately, the Full Court allowed the appeal in part, setting aside the indemnity costs order and remitting the matter of costs for reconsideration by the primary judge. The Court also varied the costs order in relation to one of the interlocutory applications.