Mitchell v Leafs Gully Farm Pty Ltd (No 2)

The appeal concerned the costs of an appeal heard in the Court of Appeal of New South Wales between the appellant, Mr Mitchell, and two respondents, Leafs Gully Farm Pty Ltd (LGF) and AGL Power. Mr Mitchell had made no submissions regarding costs against AGL Power, and AGL Power had made a contingent claim against LGF in the event the appeal was allowed. The appeal itself was dismissed.

The primary legal issue before the Court of Appeal was whether to make a *Bullock* order or a *Sanderson* order in relation to the costs of the appeal, given the dismissal of the appeal and the relationship between the parties. A *Bullock* order typically directs a successful party to pay the costs of an unsuccessful party, who in turn recovers those costs from the other party. A *Sanderson* order involves a successful party recovering their costs from an unsuccessful party, who then pays those costs to the successful party.

The Court determined that a *Bullock* order was not appropriate in this instance. Instead, the Court ordered that Mr Mitchell pay the costs of LGF, excluding any amounts LGF was required to pay to AGL Power. Furthermore, LGF was ordered to pay the costs of AGL Power. The Court also ordered that LGF pay the costs of both Mr Mitchell and AGL Power in respect of the application for costs.