Pacific Steel Constructions Pty Limited v Barahona (No 2)

Pacific Steel Constructions Pty Limited appealed a costs order made by the Supreme Court of New South Wales in favour of Luis Barahona. The dispute concerned the costs of an appeal in a workers' compensation matter.

The primary legal issue before the Court of Appeal was whether the court had the power to amend its previous costs order under the slip rule, and if so, whether it should exercise that power to alter the costs order in light of the specific provisions of the *Workplace Injury Management and Workers Compensation Act 1998* (NSW) and the *Workers Compensation Regulation 2003* (NSW).

The Court of Appeal determined that the slip rule applied, allowing for the correction of a manifest error in the original costs order. The court reasoned that the original order, which directed one party to pay the other's costs, was inconsistent with the statutory scheme governing costs in workers' compensation matters, specifically section 346 of the Act and clause 91 of the Regulation, which generally mandate that parties bear their own costs in such appeals.

Consequently, the Court of Appeal vacated the original costs order and substituted it with an order that each party bear their own costs of the appeal. The appellant was also ordered to bear its own costs of the application to amend the order.