The Entrance Plaza Pty Ltd v Davids

The Entrance Plaza Pty Ltd (the applicant) sought leave to appeal a decision of the primary judge who had declined to make a costs order in favour of the successful respondent, Davids. The dispute concerned a small amount in issue, and the primary judge had determined that there was no question of principle or a clear case of substantial injustice that would warrant a departure from the usual rule that costs follow the event.

The central legal issue before Meagher and Leeming JJA was whether the primary judge erred in exercising their discretion to refuse a costs order in favour of the successful respondent. Specifically, the court had to consider whether the circumstances of the case presented a "question of principle" or a "clear case of substantial injustice" that would justify the primary judge's refusal to award costs to the successful party.

The Court of Appeal affirmed the primary judge's decision, finding that the refusal to make a costs order was a proper exercise of discretion. Their Honours held that the small amount in issue, coupled with the absence of any broader question of principle or demonstrable substantial injustice, meant that the primary judge was not compelled to depart from the general rule that costs should be awarded to the successful party. The applicant's summons seeking leave to appeal was therefore dismissed.