Zhu v Yingle Culture Exchange (Australia) Pty Ltd ACN 113 089 759 (In Liquidation) (No 3)

In this case, the plaintiff, Zhu, sought a costs order following a successful application for discovery against the defendant, Yingle Culture Exchange (Australia) Pty Ltd, which was in liquidation. The dispute arose from Zhu's claim that the defendant had failed to comply with a previous court order to provide specific documents. Zhu applied for a notice of motion for discovery, which was granted by the court, resulting in the defendant being ordered to provide the requested documents. The matter now before the court was the plaintiff's application for costs associated with the successful application for discovery.

The court was required to determine whether the plaintiff was entitled to costs under the ordinary principle that costs follow the event. This principle suggests that the unsuccessful party in a proceeding must pay the successful party's costs. The court also needed to consider if there were any exceptional circumstances that would warrant deviating from this principle. The plaintiff argued that, as they were successful in their application for discovery, they should be awarded costs. The defendant did not contest the entitlement to costs but argued for a lower amount, citing the principle of proportionality.

The court held that the plaintiff was entitled to costs as they were successful in their application for discovery. The court found no exceptional circumstances that would warrant departing from the ordinary principle that costs follow the event. The court ordered the defendant to pay the plaintiff's costs of the motion for discovery, but the amount was to be assessed if either party applied to the court. This decision underscores the importance of adhering to the principle that costs follow the event and highlights the necessity of compliance with court orders to avoid such costs.