Liangis Investments Pty Limited v Ipex ITG Pty Limited

Liangis Investments Pty Limited (the applicant) sought to set aside an existing costs order made in favour of Ipex ITG Pty Limited (the respondent). The application was heard by the Supreme Court of New South Wales.

The central legal issue before the Court was whether the existing costs order, which had been made by consent, should be set aside. This required the Court to consider the circumstances under which a consent order, particularly one concerning costs, could be varied or discharged.

The Court's reasoning focused on the principles governing consent orders. It was held that a consent order, while having the force of a court order, is fundamentally an agreement between the parties. Such an agreement can be set aside if it can be shown that it was entered into under a fundamental mistake, or if there was fraud, misrepresentation, or undue influence. In this instance, the Court found that the applicant had established grounds to set aside the consent costs order.

Consequently, the Court ordered that the existing costs order in favour of the respondent be set aside.