New Galaxy Investments Pty Ltd v Thomson (No 2)

In *New Galaxy Investments Pty Ltd v Thomson (No 2)*, the New South Wales Court of Appeal considered an appeal and cross-appeal concerning costs orders made by the primary judge in proceedings involving multiple parties. The dispute arose from complex litigation in the Supreme Court of New South Wales, Equity Division, which included a primary claim, cross-claims, and subsequent appeals.

The central legal issues before the Court of Appeal were how to allocate costs between the various parties, including the appellant (New Galaxy Investments Pty Ltd - NGI), the first to tenth respondents (Vendors), the eleventh respondent (GDI), the twelfth respondent (MVGDD), and the thirteenth respondent (Ms Lin). Specifically, the court had to determine the appropriate basis and apportionment of costs for both the original proceedings and the appeal, particularly in light of the partial success of NGI's appeal and the interplay of various cross-claims.

The Court of Appeal applied principles of party-and-party costs, considering the overall outcome of the proceedings and the specific issues litigated between each party. The court made detailed orders reflecting the varying degrees of success and the nature of the claims and cross-claims. For instance, NGI was ordered to pay a proportion of the Vendors' costs in the primary proceedings but was to receive a proportion of its appeal costs from the Vendors. Similar apportionments were made concerning GDI and Ms Lin, while the costs between NGI and MVGDD were largely determined by the outcome of MVGDD's cross-claim and a specific issue regarding an indemnity costs order.