QBE Workers Compensation (NSW) Limited v Bae Systems Regional Aircraft Limited (Formerly British Aerospace Commercial Aircraft Limited) Company (No 2)

QBE Workers Compensation (NSW) Limited appealed to the Court of Appeal of New South Wales against a decision of the Supreme Court of New South Wales. The appeal concerned the costs awarded at the trial and on appeal, following the abandonment of the basis for the proceedings by QBE. Bae Systems Regional Aircraft Limited was the respondent.

The central legal issue before the Court of Appeal was whether QBE should be ordered to pay the costs of both the trial and the appeal, given that the substantive grounds for its proceedings had been abandoned.

The Court of Appeal reasoned that the general rule that costs follow the event applied. As QBE had abandoned the basis for its proceedings, it had effectively failed in its pursuit of the matter. Consequently, the Court ordered that QBE pay the costs of both the trial and the appeal.