SEGUR & SEGUR (COSTS SUPPLEMENTARY)

This matter concerned an application for costs supplementary to an earlier decision of Bennett J in the Federal Court of Australia. The applicants, Mr and Mrs Segur, sought to recover costs incurred in relation to an interlocutory application for an extension of time to file a notice of appeal. The respondents, the Commissioner of Taxation, had opposed this interlocutory application.

The primary legal issue before the Court was whether the applicants were entitled to an order for their costs in relation to the interlocutory application, notwithstanding that the substantive appeal had been dismissed. The Court was required to consider the principles governing the award of costs in interlocutory proceedings, particularly where the ultimate outcome of the main proceedings was unfavourable to the party seeking costs for the interlocutory step.

Bennett J noted that costs generally follow the event, but this principle is not absolute, especially in interlocutory matters. Her Honour considered that the respondents had acted reasonably in opposing the extension of time application, as it was sought late and without adequate explanation. While the applicants were ultimately unsuccessful in their substantive appeal, the costs of the interlocutory application were a separate consideration.

The Court ordered that the applicants were not entitled to recover their costs of the interlocutory application, and that each party should bear their own costs of that application.