Rhodium Australia Pty Ltd v Deputy Commissioner of Taxation

[2012] FCAFC 17

Full Court of the Federal Court17 February 2012

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Interrogate

Catchwords

1. Practice and Procedure
2. › Costs
3. › Winding up proceeding discontinued before hearing
4. › Costs order against nominally successful party
5. › Whether primary judge's exercise of discretion miscarried
6. › Whether special circumstances justified departure from ordinary rule
7. › Federal Court of Australia Act 1976 (Cth), s 43
1. Appeal
2. › Standard of appellate review
3. › Appeal from discretionary costs order
4. › Whether primary judge acted on wrong principle or took into account extraneous matters
5. › House v The King principles applied

Quick Take

A party that is nominally 'successful' because the opposing party discontinues proceedings may nonetheless be ordered to pay costs where its own conduct — including failure to comply with statutory processes, failure to comply with court orders, and delay in providing sworn evidence — caused the proceedings to be commenced and maintained. The power to award costs under s 43 of the Federal Court of Australia Act 1976 (Cth) is absolute and unfettered, subject only to the requirement that it be exercised judicially.