National Healthcare Unity Pty Ltd Trading as Mole Check Clinic v Cutera Australia Pty Ltd

National Healthcare Unity Pty Ltd trading as Mole Check Clinic (the applicant) sought orders for the determination of the quantum of party/party costs against Cutera Australia Pty Ltd (the respondent) in the Magistrates Court of Victoria. The dispute concerned the respondent's application to set aside a default judgment that had been entered against it.

The primary legal issue before the Court was to determine the appropriate quantum of costs to be awarded to the applicant, who had been successful in resisting the respondent's application to set aside the default judgment. This involved assessing the reasonableness and proportionality of the costs incurred by the applicant in defending the application.

Judge McNab considered the principles governing the assessment of party/party costs, including the need for costs to be proportionate to the complexity and value of the proceedings. The Court examined the invoices and submissions provided by the applicant, scrutinising the time spent and the hourly rates charged by the applicant's legal representatives. The Court applied the principles of reasonableness and necessity, considering whether the work undertaken was reasonably incurred and reasonably necessary for the conduct of the proceedings.

The Court made orders for the determination of the quantum of party/party costs, with the precise amount to be assessed in accordance with the Court's findings on the reasonableness and proportionality of the applicant's claimed expenses.