Murdoch v Private Media Pty Ltd (No 2)

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FEDERAL COURT OF AUSTRALIA

Murdoch v Private Media Pty Ltd (No 2) [2022] FCA 1607  

File number: NSD 673 of 2022
Judgment of: WIGNEY J
Date of judgment: 22 December 2022
Catchwords: COSTS – interlocutory applications regarding strike out of pleadings – submissions on costs for interlocutory hearings – broad discretion of Court under s 43(2) of Federal Court of Australia Act 1976 (Cth) – general principle that costs follow the event – consideration of particular facts and circumstances justifying departure from general principle – interlocutory applications unsuccessful – order for costs in the cause
Legislation: Federal Court of Australia Act 1976 (Cth) s 43(2) Defamation Act 2005 (NSW) s 29A
Cases cited:

Murdoch v Private Media Pty Ltd [2022] FCA 1275

O’Keeffe Nominees Proprietary Limited v BP Australia (No 2) (1995) 55 FCR 591; [1995] FCA 109

Division: General Division
Registry: New South Wales
National Practice Area: Other Federal Jurisdiction
Number of paragraphs: 18
Date of hearing: 30 November, 1 December 2022
Counsel for the Applicant: Ms S Chrysanthou SC
Solicitor for the Applicant: Mr J Churchill
Counsel for the Respondents: Mr M Hodge KC and Ms C Amato
Solicitor for the Respondents: Marque Lawyers

ORDERS

NSD 673 of 2022
BETWEEN:

LACHLAN KEITH MURDOCH

Applicant

AND:

PRIVATE MEDIA PTY LIMITED

First Respondent

BERNARD KEANE

Second Respondent

PETER FRAY

Third Respondent

ORDER MADE BY:

WIGNEY J

DATE OF ORDER:

22 DECEMBER 2022

THE COURT ORDERS THAT:

1.Costs for the interlocutory applications filed respectively by the applicant on 22 September 2022 and by the respondents on 5 October 2022 be costs in the cause.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

WIGNEY J:

  1. On 21 October 2022, I dismissed interlocutory applications filed on behalf of the applicant in this proceeding, Mr Lachlan Murdoch, and the respondents, Private Media Pty Ltd, Mr Bernard Keane and Mr Peter Fray, who I will refer to collectively as Crikey: see Murdoch v Private Media Pty Ltd [2022] FCA 1275. I reserved judgment on the question of costs, but noted that my provisional view was that the costs of both unsuccessful applications should be costs in the cause: see Murdoch at [141]. I invited the parties to file written submissions if they sought some other costs order. Crikey did so, and submitted that a costs order should be made in its favour in respect of Mr Murdoch’s application. Mr Murdoch opposed that order and submitted that the appropriate order was costs in the cause.

  2. One could perhaps be forgiven for thinking, when reading the parties’ respective written submissions, that the parties are occupying parallel universes.  Crikey submitted that it was wholly successful in respect of Mr Murdoch’s application and that costs should follow the event. It conceded that it should pay Mr Murdoch’s costs in respect of its own unsuccessful interlocutory application, but submitted that those costs would be infinitesimal given that most of the hearing was spent dealing…

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Details
Case
[2022] FCA 1607
Decision Date

CaseChat Overview and Summary

Murdoch, as the plaintiff, filed an action against Private Media, the defendant, in the Federal Court of Australia, raising issues pertaining to privacy and defamation. The case involves a request to strike out certain pleadings made by both parties during interlocutory stages of the proceedings. The plaintiff sought to strike out particular parts of the defendant's defence, while the defendant made a counter application to strike out specific parts of the plaintiff's claim. The court was tasked with determining whether these applications should be successful and, if not, whether the unsuccessful party should bear the costs of the interlocutory hearings.

The legal issues before the court centred around the principles governing costs in interlocutory applications and the exercise of the court's discretion under section 43(2) of the Federal Court of Australia Act 1976. The court needed to consider whether the general principle that costs follow the event should apply, and if not, what specific facts and circumstances justified a departure from this principle. The court also had to evaluate the merits of the applications themselves, which were ultimately dismissed.

The court concluded that the general principle of costs following the event should apply, and since both interlocutory applications were unsuccessful, the unsuccessful party should bear the costs. The court noted that both parties had made submissions on the issue of costs, but the primary consideration was the outcome of the applications. The court found that the applications were without merit and therefore the unsuccessful party should bear the costs. The court's decision was grounded in the statutory framework and the well-established principles of costs in interlocutory applications.

The court ordered that the costs for the interlocutory applications filed by the plaintiff on 22 September 2022 and by the defendant on 5 October 2022 be costs in the cause. The entry of orders is governed by Rule 39.32 of the Federal Court Rules 2011.

Orders

Orders of the court

1. Costs for the interlocutory applications filed respectively by the applicant on 22 September 2022 and by the respondents on 5 October 2022 be costs in the cause.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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