Washington v Qantas Airways Limited

Washington (the applicant) brought proceedings against Qantas Airways Limited (the respondent) concerning a dispute that was settled prior to a final hearing. The applicant sought an order for costs pursuant to the *Federal Court Rules 2011* (Cth), specifically requesting costs to be awarded according to the event based Court scale.

The central legal issue before the Court was whether, in circumstances where a matter has settled before a final hearing, the Court should award costs on the basis of the event, as provided for by the Court scale. This required an interpretation of the relevant rules governing costs in the Federal Court.

Justice Nicholls considered the principles of costs orders in settled matters. The Court noted that generally, where a matter settles by agreement, each party bears their own costs unless there is a specific agreement to the contrary or exceptional circumstances warranting a departure from this general rule. The Court's discretion regarding costs is broad, but the default position in the absence of a final determination on the merits is that parties are responsible for their own expenses. The Court found no basis to depart from this general principle in the present case.

The Court therefore made no order as to costs.