Re Palladium Consulting Pty Ltd

In the matter of Re Palladium Consulting Pty Ltd, the respondent applied to the Supreme Court of New South Wales for an order for payment of costs on a gross sum basis. The applicant, having been successful in the proceedings, sought an order that the respondent pay the costs on a gross sum basis under section 98 of the Civil Procedure Act 2005 (NSW). The respondent, however, argued that the costs should be paid on an indemnity basis, citing the potential for delay in further assessment and uncertainty over the applicant's capacity to meet the costs order.

The central legal issue before the court was whether the applicant's costs should be assessed on a gross sum basis, as sought, or on an indemnity basis, as argued by the respondent. The court considered the provisions of section 98 of the Civil Procedure Act 2005 (NSW) and the relevant case law in determining the appropriate basis for assessing costs. The court also took into account the potential for delay in further assessment and the uncertainty over the respondent's capacity to meet the costs order.

The court found that the applicant was entitled to an order for payment of costs on a gross sum basis. The court considered that the potential delay and uncertainty over the respondent's capacity to meet the costs order were not sufficient to warrant a departure from the usual practice of assessing costs on a gross sum basis. The court emphasised that the provisions of section 98 of the Civil Procedure Act 2005 (NSW) provide a clear framework for assessing costs on a gross sum basis and that the respondent had not provided sufficient evidence to justify an order for payment of costs on an indemnity basis.

The court made an order that the respondent pay the applicant's costs on a gross sum basis, as sought by the applicant. The court also noted that the respondent had 14 days to pay the costs, failing which the applicant could take such steps as were necessary to enforce the order.