Kennards Hire Pty Ltd v RMGA Pty Ltd

The case involved Kennards Hire Pty Ltd (the applicant) and RMGA Pty Ltd (the respondent). The applicant sought to recover costs incurred in a legal dispute, which involved issues of damages for breaches of contract and associated costs. The Federal Court of Australia was the forum for this decision. The court was tasked with determining the appropriate apportionment of costs and whether an indemnity basis was suitable, as well as whether interest should be applied to the costs.

The court examined the comprehensiveness of the applicant's success and failure across various claims and whether the usual indemnity costs order was appropriate. The applicant had succeeded on one claim but was unsuccessful on others. The court considered the relevant legislative provisions and case law to determine the appropriate cost orders, including the possibility of interest on costs. The court also assessed the proportionality of the costs awarded in light of the partial success.

The court concluded that an indemnity basis was not appropriate due to the applicant's partial success. Instead, the court found that the costs should be apportioned between the parties in accordance with their respective successes and failures. The court also determined that interest should not be applied to the costs, as the usual practice in cases of partial success was to forego interest. The court's final orders reflected this reasoning, awarding costs on a proportionate basis without interest.