The Star Entertainment Sydney Properties Pty Ltd v Buildcorp Group Pty Ltd trading as Buildcorp Interiors (No 2) (Costs)

[2026] NSWSC 190

Supreme Court of NSW

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Interrogate

Catchwords

1. COSTS — plaintiffs seek $4M in damages but awarded only $285,000 — parties’ total legal costs exceed amount in issue — whether plaintiffs or defendant entitled to costs — who won — defendant successfully defended substantial claim — plaintiffs to pay defendant’s costs — plaintiffs to pay defendant’s costs of cross-claim against the party more likely to have been responsible.

Quick Take

The Court held that recovering only a small fraction of a claim (here ~7% of $4M sought) may result in the plaintiff being treated as the losing party for costs purposes, particularly where the dominant claims fail. The case also illustrates that a Calderbank offer requiring cooperation (e.g., rectification works) will not attract indemnity costs where the offeror fails to provide necessary documentation despite repeated requests, and that a Sanderson order shifting a successful cross-defendant's costs to the plaintiff is appropriate where the plaintiff's failure to sue the obviously responsible party forced the defendant to cross-claim.