Slaveski v Nanevski Developments Pty Ltd (No 2)

The appeal concerned the allocation of costs in proceedings before the Supreme Court of New South Wales. The parties involved were the cross-claimants (Slaveski) and the cross-defendant (Tom Nanevski), with Nanevski Developments Pty Ltd also being a party to the original proceedings. The dispute revolved around the costs orders made by the primary judge following the determination of a claim and a cross-claim.

The Court of Appeal was required to determine whether the costs orders made by the Supreme Court were appropriate, particularly in light of the degree of success achieved by the parties and the resources expended in the litigation. A key consideration was the fact that Tom Nanevski, as a cross-defendant, had not been joined as a party to the appeal itself.

The Court of Appeal set aside the original costs orders. It reasoned that the primary judge had erred in their allocation of costs, failing to adequately account for the success of the cross-claimants against Tom Nanevski on the cross-claim. The Court ordered that the cross-claimants pay the costs of Tom Nanevski specifically on the cross-claim. Furthermore, the Court ordered that the defendants pay 75% of the plaintiff's costs for the main proceedings up to a specified date, including costs related to the cross-claim, while acknowledging that this did not impact any costs already subject to a separate order.