St Leger Investments Pty Ltd v True Blue James Pty Ltd and Ors (No.2)

In *St Leger Investments Pty Ltd v True Blue James Pty Ltd and Ors (No.2)*, heard in the Supreme Court of Queensland, the applicant, St Leger Investments Pty Ltd, sought orders for costs against the respondents, True Blue James Pty Ltd and others, despite the respondents being the successful parties in the substantive proceeding. The dispute centred on allegations of unmeritorious conduct by the respondents in their dealings with the Court, specifically concerning the withholding of information and a failure to disclose a known material fact until late in the hearing.

The primary legal issue before the Court was whether the usual order that costs follow the event, favouring the successful respondents, should be departed from due to the respondents' conduct. This involved considering the respondents' obligations to the Court to be full and frank in their disclosure and to contribute to the fair and expeditious conduct of the proceeding. The Court also examined the implications of the respondents' failure to disclose documents confirming a material fact in dispute, the existence of which was known to them and which had once been under their control.

Judge O'Dwyer reasoned that while the respondents were ultimately successful, their conduct in delaying the disclosure of crucial information warranted a departure from the standard costs order. The Court found that the respondents had not acted with the requisite candour and had failed to meet their obligations to assist in the efficient resolution of the litigation. Consequently, the Court ordered that the respondents recover only a discounted proportion of their costs, reflecting their partial failure to conduct the proceeding in a manner that was both fair and expeditious.