The Court applied the ordinary rule that costs follow the event, ordering the unsuccessful respondent to pay the successful appellant's costs of the appeal, finding no sound basis to depart from UCPR r 42.1 despite late amendments and additional evidence filed close to the hearing. In relation to the Local Court motion for security for costs, the Court ordered the respondent to pay only one half of the appellant's costs, reflecting an intermediate exercise of discretion: while the respondent's extravagant and untenable claims for security (more than triple the value of the underlying claims) were the major cause of the costs incurred, the respondent ultimately obtained security exceeding what had originally been proffered. The Court declined indemnity costs despite strong disapprobation of the respondent's conduct, and declined to make separate temporal costs orders for an interlocutory application in the Local Court.
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