38 It is rare for a successful party who is guilty of misconduct in the litigation to be ordered to pay the unsuccessful opponent's costs where the misconduct does not lengthen the proceedings unnecessarily, cause unnecessary issues to be canvassed or otherwise cause the costs of the litigation to be increased. Indeed, the court's entitlement to depart from the usual order that costs follow the event has sometimes been said, in effect, to be subject to the qualification that the misconduct in question occasioned unnecessary litigation and expense (see Huxley v West London Extension Railway Company (1899) 14 App Cas 26 at 32-33 per Lord Halsbury LC; Ritter v Godfrey [1920] 2 KB 47 per Atkin LJ at 60). In other cases, however, this qualification has not been mentioned: see for example Donald Campbell & Co v Pollak [1927] AC 732 at 811-812; Thorne v Doug Wade Consultants Pty Ltd [1985] VR 433 at 500; Jamal v Secretary, Department of Health (1988) 14 NSWLR 252 at 271-272; Re Elgindata Limited (No 2) (supra). On balance, it seems to me that while delay and increased expense brought about by improper conduct in the course of the litigation are highly relevant factors in the discretion to depart from the usual order as to costs, they are not essential to the exercise of that discretion. It would, in any event, be very unusual for misconduct of that kind not to cause unnecessary delay and expense." (emphasis added).
22 It is useful to extract the full passage from McHugh J 's reasons in Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 which Ipp AJA summarised (at [36]). McHugh J said (at [69]):
" 'Misconduct' in this context means misconduct relating to litigation, or the circumstances leading up to the litigation. Thus, the court may properly depart from the usual order as to costs when the successful party by its lax conduct effectively invites the litigation; unnecessarily protracts the proceedings ; succeeds on a point not argued before a lower court; prosecutes the matter solely for the purpose of increasing the costs recoverable; or obtains relief which the unsuccessful party has already offered in settlement of the dispute." (emphasis added)
23 Further, in Anglo-Cyprian Trade Agencies Ltd v Paphos Wine Industries Ltd [1951] 1 All ER 873 (at 874) (to which McHugh J referred in Oshlack) Devlin J said that in applying the ordinary rule that a successful plaintiff ought not to be deprived of costs, or made to pay the costs of the other side, unless that party has been guilty of some sort of misconduct:
"… [I]t is necessary to decide whether the plaintiff really has been successful , and I do not think that a plaintiff who recovers nominal damages ought necessarily to be regarded in the ordinary sense of the word as a 'successful' plaintiff. In certain cases he may be, eg, where part of the object of the action is to establish a legal right, wholly irrespective of whether any substantial remedy is obtained. To that extent a plaintiff who recovers nominal damages may properly be regarded as a successful plaintiff, but it is necessary to examine the facts of each particular case. " (emphasis added)
24 While it might be accepted that there was no disagreement in the High Court as to McHugh J's observations of general principle, I would also point out that, as I said in Fordyce v Fordham & Anor [2006] NSWCA 274 (at [74], Beazley and Santow JJA agreeing), the majority in Oshlack rejected the proposition that there was any absolute rule with respect to the exercise of the s 98 power such as that "in the absence of disentitling conduct, a successful party is to be compensated by the unsuccessful party": see Gaudron and Gummow JJ (at [40]), Kirby J (at [134]). I also drew attention (Fordyce v Fordham & Anor at [80]) to observations made by Hodgson JA (with whom Einstein J agreed) in Furber v Stacey & Anor [2005] NSWCA 242 that the "prima facie principle …that costs follow the event" expressed in District Court Rules 1973 Pt 39A r 9 and Pt 21 r 8 was:
"…subject to the ability of the Court, referred to in those Rules, to make such orders as it appears to the Court to be made, as the justice of the case may require ." (emphasis added)
25 With those principles in mind it is necessary to consider whether the appellant can properly be regarded as the "successful party" and, further whether even if he can, the Court is warranted in departing from the general rule because of the manner in which the ASC was pleaded and the case conducted before the primary judge and in this Court.
26 The starting point for this consideration is the observation that "[t]he claimant has succeeded but only because of considerable indulgence on the part of the Court": (Hooker No 1 at [69]). The context to that conclusion appears from Hooker No 1 as follows:
"7 The argument on the Notice of Motion proceeded over three hearing days. During the hearing Mr J Azzi, who appeared for the claimant, argued that the ASC did not raise a claim or claims which fell within the definition of 'injury' for the purposes of the MAC Act. Rather, he contended the ASC disclosed a claim for damages for injuries caused by a pattern, or series of assaults using a motor vehicle and/or a sledgehammer and that the claimant had suffered damage when all the necessary elements of the tort had been completed (the 'progressive injury claim') (Transcript, 6/4/06, pp 6-7).
8 The parties' contentions that the claims pleaded in the ASC were, or were not, caught by the MAC Act turned on the terms of that legislation. Regrettably, over the three days of hearing Mr Azzi did not take the primary judge through the MAC Act to make good his submissions.
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10 The primary judge did not accept that the progressive injury claim emerged from a literal reading of the ASC. Her Honour made it clear to Mr Azzi that as she understood the ASC the claimant was alleging that the opponent had assaulted him 'on specific days and at specific times ... with a motor vehicle' (Transcript, 25/5/06, p 11).
11 Mr Azzi defended the separate pleading of each car assault. He submitted that the Statement of Claim had to be read in totality, rather than singularly (Transcript, 25/5/06, p 42). He also contended he was required by pleading rules to plead each assault singularly as a material fact but that the pleadings should be understood by reference to the intention to rely upon the series of assaults as having given rise to the claimant's injuries (Transcript, 25/5/06, pp 42-43).
12 Mr Azzi did not seek leave before the primary judge to amend the ASC to make clear the claimant's intention to rely upon an injury that was caused by the progressive effect of the car assaults and the other assaults alleged on the claimant.
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14 The primary judge concluded (at [44]) that the car assault paragraphs sought to recover damages in respect of injuries alleged to have been caused by the opponent's 'fault in using and/or fault in operating a motor vehicle as defined in' the MAC Act. It appears tolerably clear that in so doing, her Honour was adhering to the view she had expressed in the course of argument, which found reflection in the passage to which she referred from Dunn v McPhillamy , that the ASC pleaded assaults using a motor vehicle occurring at a fixed point of time.
22 Finally, Mr Azzi conceded that the pleadings were infelicitous and could have been more 'elegantly' framed. He accepted, for example, that the car assault paragraphs could have been pleaded in combination as particulars of an assault in which the motor vehicle was the "weapon". He sought leave to replead the ASC in the event that his primary submission was unsuccessful.
23 Mr J Dupree, who appeared for the opponent, submitted that a plain reading of the ASC indicated that the claimant was pleading injuries arising out of the driving of a motor vehicle at fixed points of time so that each car assault paragraph fell within the definition of "injury" in the MAC Act. He opposed the claimant being given leave to replead without submitting a draft pleading to the Court.
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