Russo v Russo (No 4)

The case of Russo v Russo (No 4) involved an application for a specified gross sum costs order against a third defendant in the context of protracted and complex litigation. The parties were engaged in a legal dispute, and the applicant sought to recover costs under section 98(4)(c) of the Civil Procedure Act. The third defendant, who was already subject to previous costs orders, argued that they were impecunious and unable to pay any further costs. The central legal issue before the court was whether to grant a lump sum costs order against the impecunious third defendant, considering the potential disadvantage to the successful party in a formal costs assessment.

The court examined the criteria for making a lump sum costs order and the circumstances of the case. It noted the extensive and complicated nature of the litigation, the third defendant's financial status, and the potential impact on the applicant if a formal costs assessment were to proceed. The court recognised the need to balance the interests of the successful party with the financial realities of the third defendant. After careful consideration, the court concluded that it was appropriate to grant a lump sum costs order, given the circumstances of the case and the need to avoid the disadvantages of a formal costs assessment.

The court determined that the order should reflect the complexity of the litigation and the third defendant's financial situation. It ordered that the third defendant pay a specified gross sum of costs to the applicant. This decision aimed to resolve the costs issue while considering the financial constraints of the third defendant and the need to avoid potential disadvantages to the successful party in a formal costs assessment. The court's decision provided a resolution to the costs issue in the ongoing litigation between the parties.