Keys v Salway (No 2)

In Keys v Salway, the plaintiff sought a declaration that the defendant had failed to deliver certain shares to the plaintiff and that the defendant be ordered to deliver those shares to the plaintiff. The case was heard in the Supreme Court of New South Wales. The legal issues before the court included whether the defendant had failed to deliver the shares as required and the appropriate costs order to be made in the proceedings.

The court held that the defendant had indeed failed to deliver the shares as required and ordered the defendant to deliver the shares to the plaintiff. The court also considered the costs of the proceedings. It was argued that the general rule was that costs should follow the event, but the court departed from this rule in light of the circumstances of the case. The court held that the defendant should pay interest on the amount owed to the plaintiff until the date of judgment, as well as the plaintiff's costs up to the date of the final order. The court noted that the defendant had not acted reasonably in the proceedings and that this was a factor in its decision to depart from the general rule on costs.

The court's reasoning and outcome reflect the importance of ensuring that parties to litigation act reasonably and that the costs of proceedings are fair and just. The court's decision to order the defendant to pay interest on the amount owed to the plaintiff until the date of judgment ensures that the plaintiff is compensated for the delay in receiving the shares. The court's decision to depart from the general rule on costs also sends a message that parties to litigation must act reasonably and that there may be consequences for failing to do so. The final orders of the court included an order that the defendant deliver the shares to the plaintiff and pay interest on the amount owed to the plaintiff until the date of judgment, as well as the plaintiff's costs up to the date of the final order.