State of Victoria v Grawin Pty Ltd

The State of Victoria brought an appeal against an arbitration award against Grawin Pty Ltd in the Supreme Court of Victoria. The initial dispute involved a contract for the construction of a tourist resort. Grawin sought to discontinue the appeal, and the state opposed this application. The court had to decide whether to grant Grawin’s application to discontinue the appeal under section 38(4)(b) of the Commercial Arbitration Act 1984. Additionally, the court needed to determine the appropriate costs order for the proceeding, specifically whether to award indemnity costs or party/party costs, pursuant to section 24(1) of the Supreme Court Act 1986 and rules 25.05 and 63.15 of the Supreme Court (General Civil Procedure) Rules 2005. The court also had to consider whether the jurisdiction of the Supreme Court regarding costs was affected by section 10 of the Port Bellarine Tourist Resort (Repeal) Act 2012 and section 85 of the Constitution Act 1975.

The court held that the application to discontinue the appeal should be granted, primarily because the parties had reached an agreement that rendered the appeal obsolete. Concerning the costs, the court found that the appropriate order was for party/party costs, given the nature and outcome of the proceeding. The court rejected the notion that the jurisdiction of the Supreme Court with respect to costs was affected by the Port Bellarine Tourist Resort (Repeal) Act 2012 or section 85 of the Constitution Act 1975.

Grawin's application to discontinue the appeal was granted, and the court ordered that the costs of the proceeding be party/party costs.