Zeng v Mossensons Pty Limited (No 2)

The case of Zeng v Mossensons Pty Limited (No 2) involved a dispute where the plaintiff, Zeng, sought a costs order after an application for summary judgment was dismissed. The matter was heard in the Federal Court of Australia. Zeng had initiated proceedings against Mossensons, the defendant, and sought summary judgment under the Commercial List. The defendant contested the application and it was subsequently dismissed.

The court was required to determine whether it should exercise its discretion to award costs against the defendant, given that the application for summary judgment was dismissed. The primary legal issue was whether the defendant's conduct warranted an order for costs. The court considered the nature of the application, the reasons for the dismissal, and the defendant's conduct throughout the proceedings.

The court held that the defendant's conduct in relation to the application for summary judgment was unreasonable and vexatious. The defendant had made numerous delaying tactics and failed to provide essential documents, which led to the dismissal of the application. The court found that the defendant's conduct was not only unreasonable but also wasted the court's time. Consequently, the court exercised its discretion to award costs to Zeng against Mossensons. The court emphasised that such an order was appropriate to deter similar conduct in future cases.

The final orders included an award of costs to Zeng against Mossensons, reflecting the court's view that the defendant's conduct was unreasonable and had a detrimental effect on the proceedings. This decision serves as a reminder to parties in commercial litigation of the importance of conducting themselves appropriately in court proceedings.