The applicants' supplementary contentions
23 When these motions were heard on 15 November, the applicants referred to three cases upon which they had not previously sought to rely. I invited the applicants and the respondents to forward written submissions concerning those three cases, which they did. The respondents dealt with the cases in a general way. The NFF respondents submitted that the cases identified no new principles which would detract from or fall outside the principles identified by the respondents in their earlier submissions. The Lang respondents submitted that the new authorities did not add anything to the principles set out in Life Airbag. The Commonwealth and the Minister adopted the submission of the NFF respondents. The applicants, however, made detailed submissions in respect of each case.
24 Marshall v Sheahan [1999] FCA 1249 is a decision of Mansfield J. His Honour in that case declined to order a departure from the general rule where such an order would have required the respondents' costs of an application brought by the applicants and certain non-parties to be taxed forthwith to the extent that the costs were payable by non-parties, while the costs payable by the applicants (against whom no order for immediate taxation and payment was sought) would not be taxed until after the conclusion of proceedings. In declining to depart from the general rule, Mansfield J noted the inconvenience that would be caused if essentially the same costs were to be taxed on two separate occasions, and the fact that there was nothing to indicate that injustice or disadvantage would be caused to the respondents if they were to wait until the conclusion of proceedings for their costs to be paid. No significant delay was expected.
25 The applicants drew attention to the fact that Mansfield Jhad quoted from Lehane J's decision in Vasyli (supra) in which his Honour noted the inconvenience a series of taxations of costs during the currency of a matter. The applicants also submitted that the respondents had not placed before the Court any evidence that they would suffer material disadvantage by reason of their waiting for taxation, and that that was a relevant factor in the case before me. There is not before the Court any evidence as to the amount of costs that have been spent, "the likely amount of party and party or solicitor/client costs", whether all respondents are paying costs or whether some or all of them are being financed by third parties.
26 The applicants noted that Mansfield J in Marshall identified delay as a relevant consideration when deciding whether to depart from the general rule as to costs. The applicants submitted, however, that:
"mere delay of itself would not be an adequate ground upon which to depart from the general rule. Rather, it is the significance of the cause of the delay. The delay in the case currently before the court will be extensive irrespective of the causes of action pleaded against the various respondents."
27 The applicants submitted that the very nature of this case, being a trade practices and tort case against a large number of respondents, including the Commonwealth and a Minister, is such that the litigation process will be lengthy and complex with numerous interlocutory applications likely. In addition they submitted that there was a likelihood of further amendment to pleadings after discovery. It would be unreasonable, they said, if there were to be a departure from the general rule where delay is an inevitable feature of this type of litigation. The applicants drew a distinction between this case and Mitanis (supra) in which Goldberg J found that an amended statement of claim was "in large measure a new proceeding". They contended that the further amended statement of claim filed on 9 November 1999 is "similar in terms to the previous proceeding save and except for the omission of a number of intentional tortious claims such as conspiracy, misfeasance in public office and a contract claim". The case is still essentially a trade practices case and the pleading is still extensive, being over sixty pages in length.
28 In addressing the decision in Vasyli (supra) (which was cited by Mansfield J in Marshall) the applicants stated that "a significant feature of that case was that the respondents were resident outside the jurisdiction and had been brought before the court to deal with a seriously defective Statement of Claim".
29 In paragraphs 13 and 14 of their submissions, the applicants sought to draw a distinction between this case and Life Airbag (supra) to which Mansfield J referred in Marshall. As previously stated, in Life Airbag there were five attempts made at a statement of claim and several court appearances dealing with strike out applications and applications for leave to amend. The applicants submitted that in the case before me there has been only one court appearance where a strike out was argued, while the other court appearances were in the nature of directions hearings which would have taken place in any event as part of ongoing case management.
30 In addition, the appellants submitted that many of the issues determined on the strike out were matters that had not been decided by an Australian court (s 75B allegation against the Minister for Industrial Relations) or were matters that needed to be revisited in the light of High Court authority - such as the claims of conspiracy, and claims in tort and contract, against the Commonwealth.
31 The Lang respondents disputed paragraph 14 of the applicants' submission:
· At the first directions hearing on 27 November 1998 the applicants abandoned their statement of claim and elected to file and serve an amended statement of claim. The first directions hearing was thus wasted.
· After warnings about the inadequacies in the amended statement of claim, the second directions hearing on 5 February 1999 resulted in a timetable for challenges to be made to the amended statement of claim. The second directions hearing was thus wasted.
· The hearing on 4 and 5 March 1999 followed delivery of extensive written submissions. The applicants could have, but did not, abandon their amended statement of claim. The two days of hearing were thus wasted.
32 The applicants referred to Batten (supra) as being a case which was comparable to the present case, but drew a distinction on the basis that the applicants in Batten had continued with a trade practices claim against the Commonwealth where that claim was not truly arguable. The applicants in this case did not make the same kind of trade practices claim against the Commonwealth, only a s 75B claim, which, the applicants submitted, "remained largely and specifically untested save and except for obiter dicta in Kerin's case".
33 In Real Tech Systems Integration Pty Ltd v Meuross (1998) 82 FCR 150, a decision of Lehane J, the applicant sought immediate taxation of costs occasioned by its successful contempt proceeding against the respondent. The respondent objected on the grounds that the contempt proceeding was interlocutory and an O 62 r 3 order was required. Lehane J found that a contempt proceeding, though commenced by motion in an existing proceeding, is not interlocutory in nature, but separate and distinct from the existing proceeding. Therefore, the principles associated with O 62 r 3 were not applicable and costs could be taxed forthwith.
34 In Nelmac Pty Ltd v Construction, Forestry, Mining & Energy Union [1999] FCA 929, a decision of Madgwick J concerning an application for costs of a failed contempt proceeding to be taxed and paid forthwith, Madgwick J followed the decision of Lehane J in Real Tech, and ordered immediate taxation. The applicants sought to distinguish the present case from Real Tech and Nelmac on the ground that the interlocutory matters in this case, the strike out motions, were not of the same final nature as the contempt proceedings dealt with in those cases.
35 I do not view the decisions in Real Tech and Nelmac as relevant to the case before me.
36 In paragraph 20 of their submissions the applicants set out in summary form the distinctions they saw between the case before me and those cases in which costs were ordered to be taxed and paid forthwith:
"In this case the applicants have not failed to answer particulars or exposed respondents from another jurisdiction to unnecessary costs (Vasyli), submitted unacceptable amounts of amended pleadings and withdrawn same exposing the respondents to unnecessary court appearances and the instructing of counsel (Life Airbag), discontinued proceedings which were in effect in the nature of principal relief (Nelmac) or instigated unnecessary interlocutory proceedings (Marshall)."
37 The Lang respondents took issue with paragraph 20 of the applicants' submissions, claiming that it was inaccurate in the following ways:
· That the applicants have not failed to answer particulars is true, but only because the proceeding has not advanced to a position where a statement of claim has survived a strike out motion.
· The wasted directions hearings and the hearings in March 1999 have exposed the Lang respondents to unnecessary costs.
· The intentional tort claims, which occupied the larger part of the hearings in March 1999, have now been withdrawn.
· New parties have been named in the further amended statement of claim but have not been served (e.g. the 34th respondent).
· Whilst claims in negligence and under the Trade Practices Act remain, a comparison of the amended statement of claim with the further amended statement of claim shows that the factual basis for such claims is materially different.