Zhang v Kanellos (No 2)

The Zhang v Kanellos (No 2) case involved a dispute between the applicant, Zhang, and the respondent, Kanellos. The matter was heard in the Federal Circuit Court of Australia, which was asked to make decisions on costs following a previous application. The primary issue before the court was to determine the costs to be borne by the applicant, Zhang, in relation to the proceedings that had already occurred. The court was required to consider the nature of the application and the outcome of the proceedings to assess the appropriate costs to be awarded to the respondent, Kanellos.

In its judgment, the court took into account the nature of the application, the outcome, and the conduct of the parties throughout the proceedings. The court found that the application was not frivolous or vexatious, but it did not result in a significant advantage for the applicant. The court emphasised the importance of ensuring that costs orders reflect the true nature of the litigation and the efforts expended by both parties. After evaluating these factors, the court determined that Zhang should bear the costs of the application as well as any reserved costs, in accordance with the Federal Magistrates Court scale of costs. The court also granted the parties the liberty to apply for further orders or directions, provided that they gave five days' notice.

The court's decision resulted in two primary orders. Firstly, Zhang was ordered to pay the respondent's costs of and incidental to the application, including any reserved costs, as per the Federal Magistrates Court scale of costs. Secondly, the court provided the parties with the liberty to apply for further orders or directions, subject to a five-day notice requirement. This decision highlights the importance of considering the proportionality and fairness of costs orders in litigation, ensuring that the outcome reflects the true nature of the proceedings.