Mehajer v Director-General of the Department of Local Government (No.2)

In the case of Mehajer v Director-General of the Department of Local Government (No.2), the plaintiff, Mr Mehajer, sought an order for costs against the defendant, the Director-General of the Department of Local Government, in a proceeding related to his suspension from local government. The Federal Court of Australia was tasked with determining whether it was in the interests of justice to grant Mr Mehajer's motion for costs, despite his failure to initially claim costs in the originating process or seek costs when judgment was delivered.

The primary legal issue before the court was whether it was appropriate, in the interests of justice, to grant an order for costs to Mr Mehajer, given his failure to pursue a costs order at the appropriate times during the litigation. The court had to consider the principles and factors that guide the exercise of discretion in awarding costs, including the conduct of the parties, the nature of the proceedings, and the outcome achieved.

The court found that while Mr Mehajer had ultimately been successful in his litigation, his failure to pursue a costs order at the relevant stages could be seen as unreasonable. However, the court also noted the importance of considering the broader context of the case, including the public interest aspects and the conduct of the defendant. The court concluded that, in the interests of justice, it was appropriate to grant Mr Mehajer's motion for costs, albeit in a reduced amount reflecting the delay in the application.

The court ordered that the defendant pay the plaintiff's costs of the motion, assessed on the standard basis and reduced by 25% to reflect the delay in making the application.