Sidameneo (No 456) Pty Ltd v Alexander (No 2)

In *Sidameneo (No 456) Pty Ltd v Alexander (No 2)*, the appellant, Sidameneo (No 456) Pty Ltd, appealed against a costs judgment and sought declaratory relief. The underlying dispute concerned the validity of a covenant in restraint of trade, on which the appellant had succeeded at first instance, but had otherwise failed in its general claim. The respondents were Alexander and others. The appeal was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the appellant was entitled to declaratory relief regarding the validity of the covenant, and whether the costs order made at first instance, which required the appellant to pay the respondents' total costs despite its success on the restraint of trade issue, was appropriate. The court also considered the appellant's application to vary a previous order concerning the costs of the appeal itself.

The Court of Appeal held that a declaration as to the validity of the covenant was not appropriate. It reasoned that declarations should generally not be granted if they serve no useful purpose and are not ordinarily granted for "intermediate conclusions" that lead to a final order. Regarding costs, the court found that there were insufficient grounds to depart from the usual order that a party who fails generally should pay the costs of the proceedings. The court affirmed the indemnity costs order made below and dismissed the appeal from that costs judgment. The court also dismissed the appellant's motion for declaratory relief and its application to vary the costs order for the appeal.