JR Consulting and Drafting Pty Ltd v Cummings

The matter between JR Consulting and Drafting Pty Ltd and Cummings was heard in the court, which involved a dispute centred around the issue of costs, particularly in relation to a principal judgment that had determined a separate question of liability. Cummings had initially sought to have the issue of costs regarding the separate question of liability deferred until the determination of the quantum of any damages. The central legal issue that the court had to decide was whether there was any justification to depart from the general rule that costs follow the event, especially in cases where the outcome of the proceedings was mixed.

In considering the matter, the court acknowledged the general principle that costs typically follow the event, meaning that the losing party usually pays the costs of the winning party. However, the court also recognised that there may be exceptional circumstances where it would be appropriate to depart from this rule, particularly in cases with a mixed outcome. The court evaluated whether such circumstances existed in this case, focusing on the appropriateness of apportionment of costs. The court determined that there was no compelling reason to deviate from the established rule in this instance, and thus, the general principle that costs follow the event remained applicable.

As a result of the court's reasoning, the decision was made to uphold the general rule regarding the allocation of costs. The court found that there was no sufficient justification to defer the issue of costs related to the separate question of liability until the determination of the quantum of damages. Consequently, the court ruled that the costs associated with the separate question of liability should be determined in accordance with the prevailing party's position, in line with the general principle that costs follow the event. No specific orders were made regarding the apportionment of costs, as the decision focused primarily on the application of the general rule.