Wonderful Pty Ltd v Faithful Investment Pty Ltd (No 2)

Wonderful Pty Ltd, the plaintiff, commenced proceedings against Faithful Investment Pty Ltd, the first defendant, and another entity, the second defendant, in the Federal Court of Australia. The dispute involved a contract for the sale of shares in a company. The plaintiff sought various remedies, including a declaration that certain contracts were void and unenforceable, an order for the first defendant to account for profits, and an order that the first defendant compensate the plaintiff for losses incurred. The second defendant moved to have the proceedings against it dismissed, and the plaintiff opposed this motion. The court initially ordered the second defendant to pay the plaintiff's costs of the motion. The second defendant then sought to have this costs order varied.

The court was required to decide whether the initial costs order should be varied. The second defendant argued that the order was inappropriate and that the plaintiff had not established that it was entitled to costs. The plaintiff, on the other hand, submitted that the second defendant's motion was an abuse of process and that it was entitled to costs under the general law and the court rules.

The court held that the second defendant's motion was an abuse of process, as it was an attempt to avoid liability for the plaintiff's costs. The court found that the plaintiff was entitled to costs under both the general law and the court rules. The court further held that the initial costs order was appropriate and should not be varied. The court emphasised that costs should not be awarded as a punishment but rather to compensate the successful party for the expense of litigation. The court found that the second defendant's motion was an abuse of process and that the plaintiff was entitled to costs. The court dismissed the second defendant's application to vary the costs order.

The court made no orders as to costs in relation to the second defendant's appeal against the costs order.