McGrath v Rebuild Now Pty Ltd (No 2)

The matter before the court was a dispute between McGrath and Rebuild Now Pty Ltd regarding indemnity costs. The parties had previously been involved in litigation over a building contract, and the present case concerned the costs incurred in that litigation. The case was heard in the Supreme Court of Queensland.

The primary legal issue before the court was whether an order should be made for the payment of costs on a gross sum basis, rather than on the usual party/party basis. The court considered the relevant statutory provisions and case law on the subject of indemnity costs orders. The court also heard submissions from both parties on the appropriate approach to costs in the present case.

The court ultimately determined that an order for costs on a gross sum basis was appropriate in the circumstances. The court found that the conduct of the parties during the litigation had been such that a party/party costs order would not adequately compensate the successful party for their costs. The court also noted that the successful party had incurred significant costs in pursuing the litigation, and that a gross sum costs order would provide a more just outcome. The court made an order for costs on a gross sum basis, with the successful party to be paid $X from the unsuccessful party.