Mrs Michelle McKerrow v Sarina Leagues Club Incorporated

Mrs Michelle McKerrow sought costs from Sarina Leagues Club Incorporated following a successful unfair dismissal claim. The Fair Work Commission had awarded McKerrow compensation for her dismissal, and she now sought costs under section 540 of the Fair Work Act 2009. The Leagues Club opposed the application, arguing it had reasonable prospects of success in its response. The Federal Circuit and Family Court assessed the merits of the Leagues Club's opposition, considering whether the response had reasonable prospects of success and was made in reasonable cause.

The Court examined whether the Leagues Club's response was reasonable in the circumstances. It noted that the Leagues Club had not provided any substantive legal argument or evidence to support its position. Instead, the response was based on vague assertions and lacked any credible basis. The Court concluded that the response was not made in reasonable cause and had no reasonable prospects of success. Consequently, the Leagues Club's opposition to the costs application was deemed to be without reasonable cause.

Following the assessment, the Court awarded McKerrow the costs she sought. The Leagues Club was ordered to pay McKerrow's costs of the application, reflecting the lack of reasonable cause in its response. The Court emphasised the importance of parties making responses to applications that are both reasonable and based on credible legal grounds. This decision underscores the principle that frivolous or unfounded oppositions to costs applications will be met with appropriate sanctions.