Skorpos v United Petroleum Pty Ltd

Skorpos and others (appellants) appealed to the Full Court of the Supreme Court of South Australia against a judgment delivered by a single judge. The dispute concerned rental liability and other matters arising from a lease agreement.

The Full Court was required to determine whether to depart from the usual rule that costs follow the event, and if so, on what basis (party-party or indemnity/solicitor-client). Specifically, the court considered the conduct of the appellants in relation to their appeal arguments and the respondent's costs.

The Court found that the appellants had advanced arguments on appeal that were not only abandoned at trial but were contrary to the case they had presented at trial. This indecision and shift in argument caused the respondent to incur unnecessary legal costs. Consequently, the Court ordered that the appellants pay the respondent's costs of the appeal on a solicitor-client basis in relation to the issue of rental liability. The appellants were also ordered to pay the respondent's costs on a party-party basis for two other grounds of appeal. However, the respondent was ordered to pay the appellants' costs on a party-party basis for a separate ground relating to the costs of tank and line testing.