Taylor (liquidator), in the matter of Heading Contractors Pty Ltd (in liq) v Heading (No 2)

The case of Taylor (liquidator), in the matter of Heading Contractors Pty Ltd (in liq) v Heading (No 2) involved a dispute between the liquidators of Heading Contractors Pty Ltd and the third defendant, presumably a former director or officer of the company. The dispute centred around the interpretation and construction of a contract, with the liquidators seeking various reliefs, including the establishment of certain allegations in their Fourth Amended Statement of Claim. The case was heard by the Federal Court of Australia.

The court was required to determine a separate question regarding the construction of a contract, which was critical to the rights and obligations of the third defendant. The court had to decide whether the answer to this separate question should lead to an immediate determination of the costs related to it or whether those costs should be deferred until the conclusion of the entire proceedings. This decision involved assessing the relevant matters to exercise the court's discretion on reserving versus determining the costs in respect of a discrete issue.

The Federal Court answered the separate question in favour of the plaintiffs, provided that the defendants could argue against the granting of specific reliefs in the exercise of the Court's discretion. The court also granted the plaintiffs leave to amend their originating process and ordered the third defendant to pay the plaintiffs' costs related to the separate question. The defendants were given leave to appeal the orders regarding the separate question and the costs. Finally, the court ruled that the costs of the day would be costs in the cause and allowed liberty to apply.

In summary, the court determined the separate question in favour of the plaintiffs, ordered the third defendant to pay the related costs, and allowed for an appeal on certain orders, while also setting the costs of the day.