Price v Price

The applicant, Price, sought leave to appeal a costs order made by Pembroke J in favour of the respondents, also named Price. The dispute concerned an application for leave to appeal from a costs order where the amount in issue was substantially less than $100,000. The Court of Appeal considered whether the proper administration of justice warranted granting leave in these circumstances.

The primary legal issue before the Court of Appeal was whether the costs order made at first instance was appropriate, particularly in light of the fact that the orders were made by consent without a contest or hearing on the merits. This raised the question of whether there was an "event" for the purposes of rule 42.1 of the Uniform Civil Procedure Rules (UCPR), which generally dictates that costs follow the event. The Court also had to consider the conduct of the parties, specifically whether the respondents' commencement of proceedings was precipitous and whether the applicant had acted unreasonably.

The Court reasoned that where orders are made by consent without a hearing on the merits, there is no "event" in the sense contemplated by UCPR rule 42.1. Consequently, the prima facie rule that costs follow the event does not apply. The Court found that the respondents' commencement of proceedings had been precipitous and that the applicant had not acted unreasonably. Therefore, the Court concluded that no order should have been made as to the costs of the proceedings at first instance.

The Court of Appeal granted leave to appeal, set aside the costs order made by Pembroke J, and made no order as to the costs of the proceedings at first instance. The respondents were ordered to pay the applicant’s costs of the proceedings in the Court of Appeal.