Property Builders Pty Limited v Adelaide Bank Limited (No 2)

In *Property Builders Pty Limited v Adelaide Bank Limited (No 2)*, the dispute concerned the costs of proceedings brought by Adelaide Bank against Property Builders Pty Limited and Mr Phontos. The matter came before the Court of Appeal of New South Wales, comprising Bathurst CJ, Allsop P, and Sackville AJA.

The primary legal issue before the Court of Appeal was the appropriate order for costs, particularly in light of the general rule that costs follow the event and the potential for exceptions where parties are inappropriately joined or where the court exercises its discretion. The court was required to determine whether to depart from the usual costs order in favour of either Property Builders or Mr Phontos, considering the conduct of the parties and the outcome of the litigation.

The Court of Appeal applied the general rule that costs follow the event, but exercised its discretion to make specific orders based on the circumstances of each party. In relation to the proceedings brought by Adelaide Bank against Property Builders, the court ordered that Property Builders pay the costs of Adelaide Bank at both first instance and on appeal. Conversely, in respect to the proceedings brought by Adelaide Bank against Mr Phontos, the court ordered that Adelaide Bank pay Mr Phontos' costs of the proceedings at both first instance and on appeal.