Simply Irresistible Pty Ltd v Couper

In the Supreme Court of Victoria, Simply Irresistible Pty Ltd (the plaintiff) filed a lawsuit against Mr. Couper for breach of contract. The plaintiff sought nominal damages for a breach of a contractual agreement related to a commercial venture. Mr. Couper had failed to fulfill his obligations as outlined in the contract. The plaintiff ultimately was awarded a nominal sum of $1 in damages, reflecting the breach of contract. The dispute then centred on the issue of legal costs associated with the proceedings.
The primary legal issue before the court was whether the plaintiff was entitled to an order for costs from Mr. Couper, given the nominal nature of the damages awarded. The court needed to consider Rule 26.08(3) of the Supreme Court (General Civil Procedure) Rules 2005 (Vic), which generally requires the losing party to pay the costs of the proceedings. However, this rule may be departed from if there are special circumstances justifying such a departure.
The court examined the circumstances of the case and found that the offer of compromise by Mr. Couper of $10,000 constituted a significant factor. The court determined that these special circumstances warranted a departure from the usual order set out in the rule. The court concluded that it was just and equitable to make an order for costs in favour of the plaintiff, taking into account the offer of compromise and the nature of the dispute. Consequently, the court ordered Mr. Couper to pay the plaintiff's costs of the proceedings.