B.1 Costs of the Multiplicity Hearing
8 The respondents refer to, and rely upon, the observations I made during the hearing on 13 April 2018 that the multiplicity dispute was to be at the cost of the applicants and that the respondents had been caught in "an internecine fight between applicants". In short, the respondents contend they should not be exposed to any costs of an inter se fight between those suing them, particularly given the finding that multiple proceedings occasioned vexation and oppression to the respondents. Given a permanent stay was granted, it was submitted that the usual rule that costs follow the event should be applied.
9 Before dealing with the merits of this argument, I pause to note that the reference in the respondent's submissions to what occurred before me is incomplete. On 29 March 2018, at the first case management hearing, I made it clear (T 14-5) that it was entirely a matter for the respondents as to whether they wished to take an active or passive role in the multiplicity dispute. I also noted to counsel then appearing for the respondents that they did not "need to establish that there is a degree of additional cost and vexation" occasioned to a respondent in having to face multiple open class proceedings rather than one open class proceeding. I considered that proposition to be an obvious one.
10 Although the Court obtained assistance from junior counsel for the respondents (who appeared on the multiplicity dispute) and granted the relief sought by the respondents (a permanent stay of two proceedings), it is unduly simplistic to say that costs should just follow the event.
11 Although it is often said, it is not strictly correct to state that there is a rule that costs follow the event. The principled approach is as was explained by Gleeson CJ, Gummow, Hayne and Crennan JJ in Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52 at 62-63 that although there is "no absolute rule", one of the "general propositions" regarding an award of costs is that "the award is discretionary but generally that discretion is exercised in favour of the successful party": see also Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 at 88-89 [40]-[41] per Gaudron and Gummow JJ. The discretion as to costs is a broad one which is relevantly unfettered, save for the requirement to act judicially and the requirement of s 37M(3) of the Federal Court of Australia Act 1976 (Cth) (Act) to ensure that any power to award costs is exercised in the way that best promotes the overarching purpose.
12 Leaving aside the fact that generally a discretion as to costs is exercised in favour of the 'successful' party, there are a number of additional factors presently relevant to the principled exercise of the discretion.
13 First, although the respondents' submission that they were 'successful' is true in a literal sense, irrespective of the position taken by the respondents, the problem that had arisen was one the Court felt it was necessary to deal with in the interests of group members; to protect the processes of the Court; and to further the overarching purpose. The course proposed was not one initially put in train by the respondents by the filing or foreshadowing of an interlocutory application prior to the first case management hearing.
14 Secondly, although the decision made to stay two proceedings was, to an extent, based upon the vexation and oppression occasioned to the respondents by the multiplicity of proceedings, as the principal judgment reveals, this was far from the only issue.
15 Thirdly, to the extent that the vexation or oppression of a respondent in dealing with the additional costs of multiple open class proceedings (when only one is necessary to vindicate group member claims) was an issue, as noted above, no evidence or submissions were required from the respondents to establish this obvious proposition.
16 Fourthly, this was a highly unusual case. It is important to recall that both Mr Perera and the McTaggart applicants commenced entirely licit representative proceedings which sought to vindicate the rights of group members. For reasons I have explained in detail, those proceedings became, in my view, abusive or, alternatively, the conduct of them should have been restrained, or they should have been declassed. This does not detract from the fact that the proceedings were commenced legitimately and only were required to be aborted because of multiplicity issues. Moreover, each of the applicants acted reasonably in advancing their claims as to carriage of the dispute.
17 It seems to me that, doing the best I can to do justice between all relevant participants, I should reserve the issue of costs of the multiplicity dispute.
18 In the event that Mr Webb is unsuccessful in the Webb Proceeding, then there is no reason why the respondents should not get all their costs associated with the multiplicity hearings in an order made against Mr Webb (who has taken on carriage of the claims of group members).
19 If, on the other hand, Mr Webb is successful, I do not presently see any reason why the respondents should have their costs of the multiplicity proceedings (although I would be prepared to hear from the parties at that time as to why, notwithstanding a loss on the principal issues, the respondents should be required to pay the reserved costs of the multiplicity dispute, which was not of their making). In any event, absent the likely result of an overall settlement, any argument as to costs of the multiplicity dispute can be determined on the basis of complete information following the result of the case being determined.