Sheppard v State of New South Wales

The case involved the applicants, Sheppard, against the State of New South Wales. The dispute pertained to the issue of costs and interest on costs following an ex parte hearing. The matter was heard in the Supreme Court of New South Wales. The applicants sought an order for specified gross sum costs, which the respondents did not challenge during the opportunity to engage with the applicants. Additionally, the applicants applied for interest on the costs, arguing that the sum would not be available to the respondents until the publication of the judgment.

The court was required to determine whether the specified gross sum costs order was appropriate, given the respondents' failure to engage with the applicants, and whether interest on costs should be awarded, considering the timing of when the costs sum would be available to the respondents. The legal issues thus centred on the principles governing costs orders in such circumstances and the application of interest on costs.

The court concluded that the specified gross sum costs order was appropriate in light of the respondents' failure to engage. It noted that the applicants had made a reasonable attempt to engage with the respondents, and the absence of any challenge to the costs order by the respondents justified the award. Regarding the interest on costs, the court found that as the respondents would not have access to the costs sum until the judgment's publication, it was inappropriate to order interest on the costs. The court's reasoning was grounded in the need for fairness and the practical availability of funds to the respondents.

The final orders included a specified gross sum costs order in favour of the applicants and no order for interest on those costs, as the sum would not be accessible to the respondents until the judgment's publication. This outcome balanced the need for a fair costs order with the practical implications for the respondents' financial situation.