Naboulsi v Western Sydney Local Health District (No 2)

The case involved a plaintiff, Naboulsi, suing the Western Sydney Local Health District. The dispute centred on whether the general rule that costs follow the event should be departed from in this instance. The case was heard in the Supreme Court of New South Wales. The plaintiff had previously been granted an extension under the Limitation Act to commence proceedings, and the defendant had unsuccessfully resisted this extension application on the grounds that the delay would prejudice a fair trial. The plaintiff sought an order that the defendant bear their costs of the extension application.

The primary legal issue was whether the general rule of costs following the event should be departed from, particularly in light of the circumstances surrounding the extension application. The court considered whether the defendant's failure to successfully resist the extension application justified a departure from the usual rule. The court also examined the implications of the Limitation Act and the principles governing costs in such cases.

The court determined that the general rule of costs following the event could be departed from in this case. It held that the defendant's unsuccessful resistance of the extension application, which was based on a delay that would prejudice a fair trial, justified the plaintiff being awarded their costs of the extension application. The court found that the defendant's conduct warranted this departure from the usual rule. The plaintiff was thus awarded their costs of the extension application.

The court ordered that the defendant bear the plaintiff's costs of the extension application. This decision was based on the defendant's unsuccessful resistance of the extension application and the principle that the party who loses an application for an extension of time should bear the costs of that application. The court emphasised that this order was not a departure from the general rule but rather an application of the principles governing costs in exceptional circumstances.