M & L Watson Pty Ltd t/as BBR Designs v Rilsung Pty Ltd

M & L Watson Pty Ltd t/as BBR Designs (the applicant) sought leave to appeal from a costs judgment made by a first instance court against Rilsung Pty Ltd (the respondent). The dispute concerned the application of the Building and Construction Industry Security of Payment Act.

The primary legal issue before the court was whether the trial judge erred in exercising their discretion regarding costs. Specifically, the applicant argued that the trial judge departed from the ordinary rule that costs follow the event and that the novelty of the Building and Construction Industry Security of Payment Act was an irrelevant factor in this departure. The applicant also contended that the quantum of damages, though not yet ascertained, was significantly below the statutory threshold, which might have influenced the costs decision.

The court considered that the appeal did not involve a matter of principle. It was noted that the trial judge's decision on costs was a discretionary one. The court found no error in the trial judge's approach to the costs judgment, implicitly accepting that the novelty of the legislation or other factors could be relevant considerations in the exercise of discretion, particularly where the quantum of the claim was substantially below the relevant threshold.

The summons for leave to appeal was dismissed, and the applicant was ordered to pay the respondent's costs.