Team Dynamik Racing Pty Ltd v Longhurst Racing Pty Ltd & Ors

[2008] QSC 36

Supreme Court of Queensland

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Interrogate

Catchwords

1. Practice and Procedure
2. › Costs
3. › Set-off of costs
4. › Set-off between different parties
5. › Whether court has inherent power to order set-off of costs absent pre-existing equitable right
6. › Whether power limited to equitable set-off
7. › Uniform Civil Procedure Rules (Qld), r 681
1. Practice and Procedure
2. › Costs
3. › Set-off of costs
4. › Exercise of discretion
5. › Non-party funding of litigation
6. › Insolvency of party liable for costs
7. › Whether analogous to costs orders against non-parties
8. › Knight v FP Special Assets Ltd (1992) 174 CLR 178
1. Practice and Procedure
2. › Costs
3. › Costs against non-parties
4. › Categories warranting costs orders against non-parties
5. › Person funding or maintaining action
6. › Person standing behind insolvent party

Quick Take

The court's power to order a set-off of costs between different parties derives from the court's inherent power over costs, not from a pre-existing equitable right of set-off. This power is analogous to the power to order costs against non-parties and may be exercised where a non-party has funded the litigation of an insolvent party. The obiter dicta in Elfick v Elliott confining the power to equitable set-off were not followed.