South West Helicopters Pty Ltd v Stephenson (No 2)

In *South West Helicopters Pty Ltd v Stephenson (No 2)*, the New South Wales Court of Appeal considered an application for an award of interest on costs. The dispute arose from an appeal concerning the variation of previous orders relating to costs and cross-claims. The parties involved included South West Helicopters Pty Ltd, Stephenson, Essential Energy, and Parkes Shire Council.

The primary legal issue before the Court of Appeal was whether it had the power to award interest on costs, and if so, from what date such interest should be calculated. Specifically, the court had to determine if interest could be awarded from the date of payment of costs to a party's own lawyers, and whether the proportionality of costs to the amount in issue was a relevant consideration. The court also considered the timing of such a claim, noting that interest on costs of trial was first sought after judgment on appeal.

The Court of Appeal reasoned that the source of power to award interest on costs was primarily found in the relevant legislation and rules of court. It considered the principles governing the exercise of discretionary powers in relation to costs and interest, emphasizing the importance of avoiding "satellite litigation." The court also examined the relevance of extrinsic materials in interpreting amendments to the rules. Ultimately, the court made several variations to the existing orders concerning the appeal and cross-claims, and dismissed various motions and applications relating to the costs and variation of orders, with no order as to the costs of any motion.