Do Costs Always Follow The Event?

Introduction

Costs in litigation can be as complicated as the substantive dispute. There are various types of costs orders that the Court may make and the legal principles behind each costs order. These are each well worth a detailed discussion in their own right.

The general rule as to costs

The prima facie position stated in Rule 42.1 of the Uniform Civil Procedure Rules 2005 (NSW) ("UCPR") is that "costs follow the event..." (the general rule).

Typically, this means that the winning party is awarded "ordinary" costs in their favour on the rationale that the other party's actions caused them to incur costs bringing or incurring their claim.¹

Warbuton No 3 - Guidance on costs