Where leave to proceed after a six-year delay is refused under r56(1) but liability has been admitted, the refusal should not be equated with the defendant establishing non-liability for the purpose of costs. The defendant's avoidance of damages by reason of the plaintiff's dilatoriness does not as a matter of course entitle the defendant to costs of the action to date. A step in a proceeding for the purposes of r56(1) is a procedural step to carry the action forward to final judgment; an application for a stay of proceedings is not such a step.
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