LFDB v MS S M (No 2)

In the case of LFDB v MS S M (No 2), the Federal Court was asked to determine whether the applicant should be required to pay the respondent's costs on a lump sum basis. The case involved an application for costs that had been filed by the respondent, MS S M, after an earlier application was unsuccessful. The central issue before the court was whether the amount claimed by the respondent for the costs of the application and the subsequent application for lump sum costs was reasonable and justifiable.

The court found that the respondent's costs for the application were reasonable and that she was entitled to recover those costs on a lump sum basis. The court accepted the evidence of Mr Sturzaker, who provided an estimate of the costs incurred by the respondent. The court noted that there was no evidence presented by the applicant to contradict the estimate. The court also considered the nature of the work performed, including the urgency of the matter and the need for senior counsel, which it found to be justified. Regarding the application for lump sum costs, the court determined that the amount claimed for professional fees should be reduced to 75% of the total estimate, given the lack of justification for the higher percentage claimed by the respondent.

In conclusion, the court ordered that the applicant pay the respondent's costs on a lump sum basis in the amount of $20,950, which included $7,400 for professional fees, $9,800 in counsel fees, and $3,750 for costs associated with the application for lump sum costs. The court emphasised that the decision was based on the evidence presented and the principles of reasonableness in awarding costs.