The Court held that where the Victorian WorkCover Authority erroneously accepted that Victoria was the state of connection for a worker's employment, issued a serious injury certificate, and the employer's defence admitted entitlement to bring the proceeding, the plaintiff should not bear the costs of the proceeding despite its ultimate dismissal. Applying the Sangare principle, Forbes J ordered the first defendant employer to pay the plaintiff's costs of the entire proceeding (including the late amendment application and vacated trial costs) on a standard basis, on the ground that the conduct of the Authority — as the employer's insurer — induced the plaintiff to believe he was entitled to maintain his Victorian proceeding. The first defendant was also ordered to pay the second defendant's costs of the amendment applications.
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