Mead v Allianz Australia Insurance Ltd

The case of Mead v Allianz Australia Insurance Ltd involved a dispute between the plaintiffs, Mead, and the defendant, Allianz Australia Insurance Ltd. The Meads were seeking damages for breach of contract, misrepresentation and misleading or deceptive conduct. The matter was heard in the Federal Circuit Court of Australia. The primary issue before the Court was whether the plaintiffs could recover their costs of the mediation process, which they had been ordered to attend, on a party/party basis.

The Court considered whether it had the jurisdiction to make an order for the plaintiffs' mediation costs on a party/party basis, given that the parties had consensually referred the dispute to mediation and subsequently settled on terms that included an order that the defendant pay the plaintiffs' costs of the proceedings. The Court noted that the order for costs was made pursuant to section 56 of the Federal Circuit Court of Australia Act 1995 and that the plaintiffs' application was brought under section 57 of the same Act. The Court found that the plaintiffs' application was an application to vary or set aside a costs order, which required leave of the Court under section 60 of the Act. The Court held that the plaintiffs had not satisfied the test for granting leave to vary or set aside a costs order, as they had not demonstrated that the order for costs was unjust or inappropriate.

The Court further held that the plaintiffs' application was an application to recover their mediation costs on a party/party basis, which was not within the scope of the order for costs. The Court found that the order for costs was an order that the defendant pay the plaintiffs' costs of the proceedings, which did not include the plaintiffs' mediation costs. The Court held that the plaintiffs' mediation costs were not recoverable as costs of the proceedings, as they were not incurred in the conduct of the proceedings. The Court dismissed the plaintiffs' application and ordered that the parties share equally in the costs of the mediation.