Lithgow State Mine Railway Ltd v City of Greater Lithgow Mining Museum Inc (No 3)

The case involves the Lithgow State Mine Railway Ltd (first plaintiff) and the City of Greater Lithgow Mining Museum Inc (defendant). The dispute centres on a contract for the sale of land, with the first plaintiff seeking specific performance of the contract. The matter was heard in the Supreme Court of New South Wales. The first plaintiff sought an order for specific performance of the contract and an order for the defendant to pay its costs of the proceeding. The defendant opposed the first plaintiff's claims and argued that the first plaintiff was not entitled to costs as the defendant had filed a submitting appearance.

The legal issues before the court were whether the first plaintiff was entitled to an order for specific performance and whether the defendant should be ordered to pay the first plaintiff's costs. The court needed to consider the circumstances of the case, including the defendant's correspondence and submissions that the claim was hopeless, and the fact that the parties engaged in settlement negotiations before the defendant filed a submitting appearance.

The court found that there was no reason to depart from the usual rule that costs follow the event. The court noted that the defendant had maintained in correspondence that the claim was hopeless and had not provided any reason to doubt the first plaintiff's entitlement to specific performance. The court also considered that the defendant's submitting appearance did not entitle it to a costs advantage. The court held that the first plaintiff was entitled to an order for specific performance and that the defendant should be ordered to pay the first plaintiff's costs of the proceedings on the ordinary basis. The court ordered the defendant to pay the first plaintiff's costs of the proceedings on the ordinary basis.