← All cases

[2026] NSWCA 36

Filby v TEG Live Pty Ltd (No 2)

(1) Pursuant to s 98(4)(c) of the Civil Procedure Act 2005 (NSW) the appellant is to pay: (a) the respondent’s costs in respect of the Court of Appeal proceedings (2023/124961) in the amount of $84,500; and (b) the respondent’s costs in respect of this motion in the amount of $5,000. (2) Pursuant to s 101(5) of the Civil Procedure Act 2005 (NSW), interest on the costs in (1)(a) above is payable at the prescribed rate as from 25 March 2025. (3) It is noted that interest on the costs in (1)(b) above is payable as provided in accordance with the position provided s 101(4) of the Civil Procedure Act 2005 (NSW).

Catchwords

COSTS — gross sum costs order — where sufficient information before the Court to enable the assessment of a gross sum costs order in respect of costs of appellate proceedings — no issue of principle — gross sum costs order made in respect of costs of appellate proceedings

Cases cited

  • 123 259 932 Pty Ltd v Cessnock City Council (Costs)[2023] NSWCA 99
  • A.C.N. 627 087 030 Pty Ltd v Poche (No 2)[2026] NSWCA 29
  • Ahern v Aon Risk Services Australia Ltd (No 2)[2022] NSWCA 39
  • Beach Petroleum NL v Johnson (No 2)(1995) 57 FCR 119
  • Chappell v Coyle [1985] 2 NSWLR 73
  • Filby v TEG Live Pty Limited ACN 150 055 100[2024] HCASL 184
  • Filby v TEG Live Pty Ltd[2023] NSWCA 320
  • Gabrielle v Abood (No 4)[2023] NSWCA 100
  • Gagner Pty Ltd v Canturi Corporation Pty Ltd[2009] NSWCA 413
  • Hamod v State of New South Wales[2011] NSWCA 375
  • Harrison v Schipp (2002) 54 NSWLR 738;[2002] NSWCA 213
  • Hutley v Cosco (No 2)[2021] NSWCA 335
  • Manariti Plumbing Pty Ltd v Universal Property Group Pty Ltd (No 2)[2025] NSWCA 185
  • Rahman v Rahman (No 2)[2025] NSWCA 266
  • Salmon v Albarran (No 2)[2025] NSWCA 115
  • Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd[2011] NSWSC 11
  • Tzaneros Investments Pty Ltd v Walker Group Constructions Pty Ltd (No 4)[2018] NSWSC 431
  • WLD Practice Holdings Pty Limited v Sara Stockham[2020] NSWSC 1354
  • Wormald v Maradaca Pty Ltd[2021] NSWCA 307

Legislation cited

  • Civil Procedure Act 2005 (NSW), § 98, 101
  • Legal Profession Uniform Law Application Act 2014 (NSW), § 70
  • Uniform Civil Procedure Rules 2005 (NSW), § 10.14

Judgment

  1. [1]

    On 19 December 2023, this Court dismissed an appeal brought by Mr Filby against the dismissal by Slattery J of his claim that the respondent, TEG Live Pty Ltd, breached obligations of confidence owed to him and used his confidential information: Filby v TEG Live Pty Ltd [2023] NSWCA 320. This Court also ordered that Mr Filby pay TEG Live’s costs of the appeal. Mr Filby filed an (out of time) application for special leave to the High Court on 28 March 2024. This was refused with costs on 8 August 2024: Filby v TEG Live Pty Limited ACN 150 055 100 [2024] HCASL 184.

  2. [2]

    On 26 May 2023, Slattery J made orders directing that Mr Filby pay TEG Live’s costs of the proceedings at first instance, which were heard between 12 and 19 September 2022, on the ordinary basis up to and including 20 November 2020 and on an indemnity basis from 21 November 2020.

  3. [3]

    By notice of motion filed 25 September 2025 (motion), TEG Live seeks an order that Mr Filby pay its costs of both the first instance and appeal proceedings (from 12 October 2020 when Corrs Chambers Westgarth was instructed), and of the costs motion, on a gross sum basis pursuant to s 98(4)(c) of the Civil Procedure Act 2005 (NSW) in the sum of $658,119.18 for the first instance and appeal proceedings, $107,838.06 by way of interest on those costs and $30,900.52 for the costs motion, totalling $796,857.76. TEG Live seeks that the motion be determined on the papers and relies on an affidavit of Anna Inglis Ross, affirmed 25 September 2025 and exhibit ex AIR-1. TEG Live also relies on written submissions filed on 9 February 2026.

  4. [4]

    For the reasons set out below, it is not appropriate for this Court to make any orders as regards the first instance proceedings. It follows that in this judgment I do not consider TEG Live’s submissions that are specifically directed to the first instance proceedings. Nothing in this judgment, or my orders, should, however, suggest that TEG Live is not able to make an application for a gross sum costs order in respect of its costs in the first instance proceedings and its costs of this application to the extent that it relates to the first instance proceedings. Whilst it is obviously a matter for TEG Live if and how it makes such application, it could readily be done on the basis of the evidence, relied upon in support of the motion, which addresses the costs at first instance.

  5. [5]

    I will make a gross sum costs order in respect of the costs of the appeal proceedings in the amount of $84,500 and of the motion in the amount of $5,000 pursuant to s 98(4)(c) of the Civil Procedure Act. Pursuant to s 101(5) of the Civil Procedure Act I will order that interest is payable at the prescribed rate on TEG Live’s costs of the proceedings in this Court as from 25 March 2025.

Attempts to serve Mr Filby

  1. [6]

    The evidence discloses that Mr Filby has not responded to the motion by filing evidence or submissions, or indeed by making any contact with Corrs or the Court. In these circumstances, close attention must be given to the evidence explaining what steps have been taken to serve the motion and supporting materials on him.

  2. [7]

    On 30 September 2025 the Court of Appeal Registrar directed that the motion be heard on the papers and made timetabling orders.

  3. [8]

    On 9 October 2025 the Registrar directed that Mr Keleher, the solicitor on record for Mr Filby in the appeal proceedings, file a notice of ceasing to act and provide the most recent contact details for Mr Filby held on his file and that TEG Live serve the motion on Mr Filby by 15 October 2025.

  4. [9]

    On 21 October 2025 TEG Live filed a motion (substituted service motion) seeking an order under Uniform Civil Procedure Rules 2005 (NSW) (UCPR), r 10.14(3) that the motion, an affidavit in support of the motion affirmed on 25 September 2025 by Ms Ross, the partner at Corrs with conduct of the proceedings at first instance and in this Court, and the exhibit to this affidavit, ex AIR-1, be taken to have been served on Mr Filby by text message to an identified mobile phone number (which I refer to in this judgment as “the phone number”) on 17 October 2025.

  5. [10]

    That motion was supported by an affidavit of Ms Ross affirmed on 21 October 2025 in which she explained that searches she had caused to be conducted to ascertain Mr Filby’s financial position had not identified any address for him and that service of the motion and supporting documents upon Mr Keleher was rejected on the basis that he no longer held instructions to act for Mr Filby. Ms Ross also said that Mr Keleher sent her an email on 10 October 2025 attaching a sealed copy of a notice of ceasing to act and informing her of Mr Filby’s last known address, email address and the phone number.

  6. [11]

    On 17 October 2025 George Robertson, a senior associate at Corrs, sent a text message of service to the phone number, providing a link to the notice of motion, Ms Ross’ first affidavit, ex AIR-1 and the most recent Court orders, and confirming that the matter was next listed on 22 October 2025. Mr Filby did not contact either Corrs or the Court in response to this message.

  7. [12]

    Attempts to serve Mr Filby at the address, email address and phone number provided by Mr Keleher were all unsuccessful, as explained in an affidavit of James Moore, process server, sworn on 20 October 2025. No-one was at the address or at neighbouring properties. A reply email indicated that delivery of the email to the email address had failed. When Mr Moore rang the phone number the person who answered identified himself as Mr Filby, but when Mr Moore said that he was attempting to serve notice of motion documents on him, Mr Filby said words to the effect of, “I don’t want anything to do with you” and terminated the call. Mr Moore then attempted again to call the phone number, but the call was not connected. Mr Moore said that he suspects, based on his experience, that Mr Filby had blocked his telephone number.

  8. [13]

    In response to a request from the Court, Ms Ross affirmed a further affidavit on 20 November 2025. This included Mr Filby’s address as recorded on the electoral roll (Clare Property), that social media and White Pages searches for Mr Filby were unsuccessful, that a search on the website “domain.com.au” disclosed that the Clare Property was re-leased in October 2025, and that further searches carried out by Wise McGrath process servers (comprising searches of tenancy and other databases, Australian Business Number searches, other online searches and attempts to contact Mr Filby using a number connected with his LinkedIn profile) were all unsuccessful.

  9. [14]

    In an affidavit affirmed on 4 December 2025 responding to a further request from the Court, Ms Ross set out additional details of the searches conducted to locate a means of contacting Mr Filby and of the responses to attempts to contact him. Ms Ross also detailed an attempt to obtain contact details for Mr Filby through Mr Keleher who responded that, to his knowledge Mr Filby was unemployed, that the contact details he had provided were the most up to date that he had, and that he would not attempt to contact Mr Filby.

  10. [15]

    On 11 December 2025 the Deputy Registrar made an order dispensing with personal service and ordering pursuant to UCPR, r 10.14 that, instead, service of the notice of motion and that sealed order be effected by sending them to the phone number and to Mr Filby’s LinkedIn profile, with service taken to be effective after 14 days of the later of these two means of service. A difficulty with this order is that it provides for substituted service of the motion and the orders, but not for substituted service of Ms Ross’ first affidavit and ex AIR-1, which are relied upon in support of the motion and which were in fact linked to the text message sent by Mr Robertson to Mr Filby on 17 October 2025.

  11. [16]

    Following this, as set out in an affidavit of Mr Robertson affirmed on 23 January 2026, the motion, Ms Ross’ first affidavit, ex AIR-1 and the orders of 11 December 2025 were sent to Mr Filby’s LinkedIn profile and by text message to the phone number. Mr Robertson also sent a message to Mr Filby’s LinkedIn profile and to the phone number stating that the motion was listed before the Court on 2 February 2026. Mr Filby did not respond in any way to these messages.

  12. [17]

    On 2 February 2026 the Registrar made a timetable for submissions and ordered that the motion be heard on the papers and that Mr Filby be notified of those orders in the manner provided in the orders of 11 December 2025. Links to the orders, and TEG Live’s written submissions on the motion, were sent to the phone number on 3 and 9 February 2026, respectively. The viewing history of the links indicates that as at 18 February 2026 Mr Filby had not viewed or downloaded these documents.

  13. [18]

    In light of the above I am satisfied that personal service is practically impossible and service by text message to the phone number would “in all reasonable probability” bring the documents to Mr Filby’s attention: Chappell v Coyle [1985] 2 NSWLR 73 at 83 (Yeldham J), albeit that he may not in fact take steps to read documents by accessing the links. Whilst it is of course possible that Mr Filby has changed his phone number, there is no evidence that that has happened.

  14. [19]

    Noting that no orders for deemed or substituted service had been made as regards the evidence relied upon by TEG Live on the motion, on 9 March 2026 I made orders that service of the evidence and submissions relied upon in support of the motion, and of my orders, be effected by sending the documents by text message to the phone number, and that the motion would be determined on the papers, in accordance with the Registrar’s orders of 2 February 2026, unless Mr Filby applied to vary those orders by 4 pm on 20 March 2026. Mr Filby did not apply to vary the orders. Ms Ross confirmed by email of 10 March 2026 that Corrs had complied with my orders.

The application for a gross sum costs order

  1. [20]

    In substance, TEG Live relies on four matters in support of the motion.

  2. [21]

    First, it contends that Mr Filby’s conduct of the proceedings, and in particular the extent to which this led to costs being incurred by TEG Live, is such that it would be just and fair to make a gross sum costs order. As regards the appeal proceedings, TEG Live relies upon some delay in service of the appeal books and written submissions, information covered by suppression orders being included in Mr Filby’s written submissions, the need to seek non-publication orders (by consent) and conduct of Mr Filby which Corrs says led to it having to seek leave to file a notice of contention out of time.

  3. [22]

    Second, TEG Live contends that the costs it incurred in the proceedings as a whole (which it says are $749,839.94 in total) are disproportionate to the issues litigated, being whether TEG Live breached an obligation of confidence, and that this resulted from the way in which Mr Filby conducted the proceedings.

  4. [23]

    Third, TEG Live says that its evidence enables the Court to draw an inference that Mr Filby would not be able to meet a liability of the order likely to result from an assessment of costs, such that the costs of the assessment process would lead to further under-recovery. TEG Live relies upon evidence indicating that Mr Filby does not own any real estate in Australia or securities in any Australian company and is not currently a director of any Australian company (his last directorship as recorded in an ASIC data extract in ex AIR-1 was in 2014). Further, in January 2021 Mr Filby said in an affidavit that he was then on unemployment benefits and was unable to cover the cost of an expert report he wished to rely upon. Mr Filby did not pay the costs order at first instance.

  5. [24]

    Fourth, TEG Live contends that the evidence it has put before the Court, in particular Ms Ross’ evidence as to her litigation experience, the basis upon which she sought to use the resources she did and her opinion that the costs incurred were reasonable and commensurate, should give the Court sufficient confidence to determine that the order sought is reasonable. TEG Live concedes that the order sought is a higher amount than it would be likely to recover on an assessment, assuming that it would recover between 60-80% of its actual costs and disbursements. TEG Live submits, however, that the order sought is reasonable given that it has applied a 10% discount to Corrs’ legal costs subject to the indemnity costs order, a 5% discount to counsel’s fees and a 30% discount to its legal costs up to the date of the indemnity costs order, for the appeal proceedings and on this application, noting that its actual costs, including disbursements, on this application are $44,143.60 inclusive of GST and $40,130.54 exclusive of GST. TEG Live also seeks a gross sum costs order for 70% of the interest, at the Court prescribed rates, which it says should be paid on the costs awarded in both the first instance and appeal proceedings, from the date of the respective judgments.

Delay

  1. [25]

    The motion was filed some 21 months after this Court’s judgment was handed down and orders were made, and 13 months after the High Court refused Mr Filby’s application for special leave.

  2. [26]

    Ms Ross seeks to justify this delay on the basis that the outcome of Mr Filby’s application for special leave was not known until August 2024 and the departure of some lawyers at Corrs who had worked on the matter meant that additional work was required in the preparation of the material relied upon on the motion. Ms Ross says that she briefed Ms Steinhoff, counsel, shortly after she received instructions from TEG Live to prepare the motion.

  3. [27]

    Ms Steinhoff’s costs disclosure is dated 20 March 2025. That suggests that instructions were not given to prepare the motion until approximately six or seven months after the refusal of Mr Filby’s application for special leave. That timing is consistent with Corrs’ invoices on the motion, which indicate that billable work commenced around 1 April 2025. It also suggests that some six months elapsed between instructions being given and the filing of the motion. Ms Ross explains that significant work was required to prepare the motion, although this further delay of six months appears to me more than could reasonably have been required. I add that Mr Filby’s application for special leave to appeal did not justify delaying the application for a gross sum costs order: see by analogy Tzaneros Investments Pty Ltd v Walker Group Constructions Pty Ltd (No 4) [2018] NSWSC 431 at [38] (Ball J). The disadvantages of delay outweigh the benefit of any costs savings to TEG Live if Mr Filby had succeeded both in being granted special leave and on appeal to the High Court. This is an application which should reasonably have been filed within 6 months of the orders of this Court disposing of the appeal (allowing for the intervening Christmas vacation period). As Ball J explains in Tzaneros at [32] and [38] there are practical reasons why an application for a gross sum costs order should be made promptly.

Consideration

  1. [28]

    The power to make a gross sum costs order at any time before costs are referred for assessment is found in s 98(4) of the Civil Procedure Act. As has often been stated, s 98 confers a wide discretion on the Court: see eg Rahman v Rahman (No 2) [2025] NSWCA 266 at [61] (Payne, McHugh and Free JJA). A gross sum costs order is particularly appropriate where it is desirable to avoid the expense, delay and aggravation likely to be involved in a costs assessment either because of the length and complexity of the assessment or because the additional costs of formal assessment are unlikely to be recovered: Hamod v State of New South Wales [2011] NSWCA 375 at [817] (Beazley JA, as her Excellency then was, Giles and Whealy JJA agreeing); see also Harrison v Schipp (2002) 54 NSWLR 738; [2002] NSWCA 213 at [27]-[33] (Giles JA). I am satisfied that that is the case here.

  2. [29]

    The discretion may be exercised where the court considers that the circumstances warrant its exercise and “that it can do so fairly between the parties, and that includes having sufficient confidence in arriving at an appropriate sum on the materials available”: Gabrielle v Abood (No 4) [2023] NSWCA 100 at [6] (Bell CJ, Kirk and Adamson JJA). A broad-brush approach is appropriate; the court is not required to undertake an assessment of the kind that would be appropriate to taxation or a formal costs assessment: Rahman at [63], Gabrielle v Abood at [6]. The court must, however, be confident that the material before it “enables it to make a sufficiently reliable calculation or estimate of an appropriate costs sum”: Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2011] NSWSC 11 at [21] (Barrett J). Another way of putting this is that the approach must be “logical, fair and reasonable”: Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119 at 123 (von Doussa J).

  3. [30]

    The degree of any disproportion between the issues litigated and the costs claimed and the complexity of proceedings in relation to their costs are factors meriting particular consideration in an application for a gross sum costs order: Hamod at [816].

  4. [31]

    As regards the proceedings in this Court, the invoices in ex AIR-1 all set out a narrative of the work undertaken and the issues were relatively confined. I am satisfied that I am able to make a determination which is logical, fair and reasonable.

  5. [32]

    I am also satisfied that Mr Filby has been given a reasonable and adequate opportunity to be heard on the motion: Hamod at [815]; Beach Petroleum at 120. That he chose not to engage with Mr Moore or Corrs, or to read documents sent by text message to the phone number and LinkedIn message to his LinkedIn profile, is most likely indicative of Mr Filby having chosen not to be heard on the motion.

  6. [33]

    Delay may tend against the making of a gross sum costs order and may be a discretionary reason for refusing to make such order: Tzaneros at [32]-[34] and, as to the court’s discretion in this regard, Wormald v Maradaca Pty Ltd [2021] NSWCA 307 at [15] (Bathurst CJ, Bell P, and Payne JA). Whilst I would not decline to make the order on account of delay, it is a relevant factor in particular in determining what costs should be ordered for the motion itself.

  7. [34]

    It is generally not appropriate for this Court to be occupied in considering a claim for a gross sum costs order in respect of proceedings at first instance as well as those in this Court: Wormald at [16]; Manariti Plumbing Pty Ltd v Universal Property Group Pty Ltd (No 2) [2025] NSWCA 185 at [57] (Free JA, McHugh and Ball JJA agreeing). That is obviously a sensible approach particularly where, as here, the lion’s share of the costs sought to be made the subject of the order arise from the first instance proceedings about which this Court has no direct knowledge. Assertions or opinions in affidavits of one party’s solicitor cannot supplant the very real benefit that the judge conducting those proceedings has in making the assessments required on an application for a gross sum costs order. Contrary to the submission of TEG Live, this Court is not in as good a position to determine the motion insofar as it relates to the proceedings at first instance as the Court that determined those proceedings.

  8. [35]

    In light of the matters set out above, a gross sum costs order for the appeal proceedings in this Court, and for the motion, is warranted here. Mr Filby has avoided any engagement with the motion. The evidence before the Court is far from conclusive but suggests that Mr Filby may well be unable to meet the significant costs liability he faces or the costs of an assessment process. The costs incurred by TEG Live in preparing for this application are significant, as disclosed in Ms Ross’ affidavits, and the costs of an assessment process are likely to be even more significant. Such an assessment will necessarily involve engaging in detailed consideration of steps taken in litigation which, whilst not particularly complex, extended over a protracted period. There is also nothing to suggest that agreement would be reached between TEG Live and Mr Filby as to the amount he is liable to pay in respect of costs.

  9. [36]

    It is overwhelmingly in the interests of the just, quick and cheap determination of the issue of costs that this Court make a gross sum costs order in respect of the costs of the proceedings in this Court and of the motion.

  10. [37]

    Out of completeness, I add that, as regards the appeal proceedings I am not persuaded that Mr Filby’s conduct materially contributed to TEG Live’s costs.

  11. [38]

    Turning to the question of the amount which should be ordered, as Beazley JA observed in Hamod, the court typically applies a discount in assessing costs on a gross sum basis. That discount may be somewhat impressionistic, in order to take into account contingencies that would be relevant on any formal costs assessment: Hamod at [820]; Beach Petroleum at 124. That discount is often between 10% and 30%: WLD Practice Holdings Pty Limited v Sara Stockham [2020] NSWSC 1354 at [11] (Sackar J) but that should not be treated as a default position; each case will turn on its own facts.

  12. [39]

    According to Ms Ross, TEG Live incurred $144,902.13 in defending the appeal proceedings. The work involved providing advice, reviewing documents, briefing counsel, preparing for hearing, attending the hearing, advising on the judgment and advising TEG Live regarding its options for cost recovery. That figure is in fact somewhat lower than the sum of counsel’s fees, Corrs’ fees and disbursements as reflected in the documents in ex AIR-1. I have considered what sum should be ordered by reference to the evidence rather than using the figure of $144,902.13 as a starting point.

  13. [40]

    Ms Gleeson SC’s fees for the appeal proceedings were $26,455 (inclusive of GST). Her rate (as set out in the evidence) is eminently reasonable for counsel of her experience and standing. Exclusive of GST those fees were $24,050. I consider that it is reasonable to allow approximately 95% of that figure: $22,850.

  14. [41]

    Ms Ross says that 70% of Corrs’ fees of the proceedings in this Court is $88,652.35 exclusive of GST. 100% of those fees would thus be $126,646.21 (and that figure is supported by the fee notes in ex AIR-1).

  15. [42]

    I have reviewed Corrs’ invoices included in ex AIR-1, including the individual line items, albeit without the benefit of submissions from a contradictor. Without descending into the detail of individual items (many of which reflect consideration being given to preparation and reviewing emails and large amounts of time spent reviewing material from the proceedings at first instance, carrying out research, and preparing summaries of judgments and matrices or schedules of evidence and submissions), I am satisfied that the costs incurred are disproportionate to the work fairly required for what was a confined, albeit fact focussed, one-day appeal which was prepared and heard promptly. There were five grounds of appeal and two grounds advanced in the notice of contention. The latter overlapped to some extent with the issues raised by the notice of appeal. The appeal proceedings raised, in essence, three issues: specificity; whether the circumstances imported an obligation of confidence; and whether there was misuse of confidential information. None of those issues was unduly complex albeit they required detailed examination of the evidence at first instance and the applicable legal principles. Factually, the issues largely centred upon one meeting which took place on 26 February 2013.

  16. [43]

    As would be expected, Ms Gleeson (who also appeared at first instance) drafted the submissions on appeal, although these were reviewed by Corrs. The submissions were not lengthy. Whilst confidentiality orders were sought, that was an issue that was dealt with concisely, largely on the basis of written submissions and evidence that had been relied upon in the proceedings at first instance. By way of example of the lack of proportionality, it was not proportionate to the complexity of the appeal for 103.3 hours of the time of a senior associate and 52.7 hours of an associate to be billed on this appeal (as is reflected in Corrs’ tax invoices). In these circumstances, a substantial discount is warranted to ensure that the costs ordered to be paid are proportionate to the complexity and nature of the proceedings: see, by analogy Salmon v Albarran (No 2) [2025] NSWCA 115 at [14]. Applying the necessary broad-brush approach, I will allow an amount of $60,000 in respect of Corrs’ costs of the appeal.

  17. [44]

    The disbursements on the appeal proceedings come to around $1,840.20 and I will allow $1,650 to reflect risks on assessment.

  18. [45]

    This gives a total of $84,500 in respect of the appeal proceedings. That is approximately 58% of what Ms Ross says were the total costs incurred. I am satisfied that that sum is proportionate and fair as between the parties. This figure also accommodates the contingencies that would arise in a formal costs assessment process, noting the certainty which a gross sum costs order provides.

  19. [46]

    This figure does not include GST paid by Corrs. Whilst there is no evidence as to this, I would infer that TEG Live is registered for GST and is thus entitled to an input credit on any GST paid: Gagner Pty Ltd v Canturi Corporation Pty Ltd [2009] NSWCA 413 at [150]-[153] (Campbell JA, Macfarlan JA and Sackville AJA agreeing).

  20. [47]

    As regards claims which were commenced after 24 November 2015, ss 101(4) and (5) of the Civil Procedure Act provide:

  21. [48]

    In 123 259 932 Pty Ltd v Cessnock City Council (Costs) [2023] NSWCA 99 at [31] Brereton JA, Mitchelmore JA agreeing, described ss 101(4) and (5) as “a prima facie compromise between the date of the certificate of assessment, and the date when the costs were incurred”. Absent an order, interest will be payable from the date on which a costs order was made. Where there is an assessment of costs, the certificate of the costs assessor will include any interest on costs payable under s 101: Legal Profession Uniform Law Application Act 2014 (NSW), s 70(1)(c)(ii). The payment of interest on costs has been described as having a “compensatory effect”: Hutley v Cosco (No 2) [2021] NSWCA 335 at [31] (Basten JA).

  22. [49]

    Having regard to the delay in making the application for a gross sum costs order (discussed above), under s 101(5) of the Civil Procedure Act I will order that interest on costs is payable from 25 March 2025, that is, from six months prior to the making of this application. This reflects my conclusion that this application should reasonably have been brought within six months of the orders of this Court, in which case interest would only have been incurred on costs for a period of six months prior to the making of the application. Whilst it may be that Mr Filby (who on the evidence did not respond to Ms Ross’ offer on costs sent in May 2024) would not have made payment of any amount assessed by way of gross sum costs order in respect of the appellate proceedings even at that date, in which case, ordinarily, he would have been liable to pay interest at the prescribed rate under s 101 of the Civil Procedure Act in any event, no assumption should be made that this would have been the case at a time when the proceedings in this Court (in which Mr Filby was represented by senior and junior counsel which he must in some way have funded) were relatively recent and Mr Filby had an outstanding application for special leave and likely also had legal representation for that purpose.

  23. [50]

    Consistent with the approach taken by Ward P in A.C.N. 627 087 030 Pty Ltd v Poche (No 2) [2026] NSWCA 29, I propose not to undertake the task of calculating interest on costs to date.

  24. [51]

    The costs of a motion seeking a gross sum costs order may be assessed on a gross sum basis: Ahern v Aon Risk Services Australia Ltd (No 2) [2022] NSWCA 39 at [46]. As to the costs of the motion here, as I have already observed, these are $40,130.54 exclusive of GST (calculated on the basis that Ms Ross says that 70% of the costs inclusive of GST is $30,900.52). As to these costs, appropriately, junior counsel was instructed at a reasonable rate. Corrs’ invoices indicate that the work carried out primarily related to decision-making in relation to costs, preparing and drafting Ms Ross’ first affidavit and compiling ex AIR-1.

  25. [52]

    TEG Live is entitled to its costs of the motion insofar as they relate to the proceedings in this Court. It was a reasonable application to make and, as regards the costs of those proceedings, it has succeeded. It must be said, however, that the delay in bringing this application, and the extended period over which the preparatory work was undertaken, is likely significantly to have increased the costs involved. In this regard, Ms Ross explains that “[d]ue to the recent departure of [various staff members who had worked on the proceedings, that Mr] Robertson, the lawyer assisting with this Costs Application, has been required to review a significant volume of material”. That evidence supports the conclusion, that I would have drawn in any event, that delay has substantially increased the costs of the motion.

  26. [53]

    Consistent with the approach set out above, I will not make a gross sum costs order as regards the costs of the motion insofar as they relate to the first instance proceedings. That is a matter for the judge considering any application that is made as regards those costs. Thus, my order relates only to those costs of the motion that relate to the proceedings in this Court.

  27. [54]

    Whilst it is difficult to be precise as to the extent to which costs were incurred in relation to the motion insofar as it relates to such proceedings, the affidavit evidence is sufficient for this to be done in a broad-brush, but sufficiently reliable, way. Ms Ross’ first affidavit sets out the substantive evidence relied upon on the motion. 37 paragraphs within that affidavit are devoted to the procedural history of the appellate proceedings and the costs incurred therein, whereas approximately 160 paragraphs deal with the procedural history of the first instance proceedings including offers of compromise made in those proceedings and the costs incurred in defending those proceedings (beyond these paragraphs the affidavit broadly goes to issues arising in the motion more generally). That suggests that about one quarter of the work on the motion related to the proceedings in this Court, equating to about $10,000 out of the total costs of $40,130.54. Having regard to the impact of delay on those costs, and to the principles set out above, I will make a gross sum costs order in the sum of $5,000 in respect of TEG Live’s costs of the motion insofar as they relate to the costs in this Court.

  28. [55]

    As I have already indicated, nothing in this judgment precludes TEG Live from seeking a gross sum costs order in respect of the costs of the proceedings at first instance.

Conclusion

  1. [56]

    It follows that the orders of the Court are:

    1. (1)

      Pursuant to s 98(4)(c) of the Civil Procedure Act 2005 (NSW) the appellant is to pay:

    2. (2)

      Pursuant to s 101(5) of the Civil Procedure Act 2005 (NSW), interest on the costs in (1)(a) above is payable at the prescribed rate as from 25 March 2025.

    3. (3)

      It is noted that interest on the costs in (1)(b) above is payable under s 101(4) of the Civil Procedure Act 2005 (NSW).

Unofficial copy. Source: NSW Caselaw. Refer to the official version for authoritative text.