Seven Network Limited v News Limited

The case of Seven Network Limited v News Limited involved a dispute over costs between Seven Network Limited, an applicant, and Telstra, a respondent. The matter was before the Federal Court of Australia, which was required to determine the appropriate costs to be awarded to Telstra for the proceedings. The key legal issue was the method of assessing and awarding costs, particularly in light of the substantial costs incurred by Telstra and the differing views of the parties on the appropriate amount to be awarded. The court had to decide whether to award costs on a taxed basis or in a gross sum, and if the latter, the appropriate figure.

The court reasoned that while the traditional approach would be to tax the costs item by item, the nature of the case and the significant costs involved warranted a gross sum assessment. The court noted that the total costs claimed by Telstra were $16 million, but after considering various deductions, including professional costs, unqualified contributors, counsel’s fees, and experts' fees, it was appropriate to reduce the amount to $13 million. This figure represented approximately 62.75 per cent of Telstra's actual costs and disbursements. The court found that this percentage was within an appropriate range, given the circumstances of the case, and thus awarded Telstra a gross sum of $13 million in costs.

The court further ordered that Seven pay Telstra $13 million in respect of the costs incurred in the proceedings and that all previous costs orders between Seven and Telstra be vacated. The court also suggested that each party should bear its own costs incurred after the date of the Principal Judgment, considering that Telstra’s application for indemnity costs had not succeeded.