Lehrmann v Network Ten Pty Limited (Costs) (No 2) [2024] FCA 706

Lehrmann v Network Ten Pty Limited (Costs) (No 2) [2024] FCA 706

Because Mr Lehrmann was of modest means, there was no real likelihood he would be able to pay a substantial costs order, and a further reference would cause unnecessary expense and delay. Network Ten's evidence showed $3,668,420.83 had been invoiced and paid, with exclusions, recovery allocations and a further 35% discount producing approximately $2,000,000. The Court was satisfied that $2,000,000 was clearly recoverable under the existing costs order and likely represented a real discount, so it was appropriate to quantify Network Ten's costs in that fixed amount.

Jurisdiction
Australia
Judgment Date
27 June 2024
Procedural Posture
Costs in Defamation Proceeding / Application to Quantify Costs in a Fixed Lump Sum After Previous Costs Orders
Outcome
Orders varied and judgment entered for Network Ten against Mr Lehrmann for fixed costs of $2,000,000.
Legal Topics
['lump Sum Costs' 'indemnity Costs' 'ordinary Costs' 'overarching Purpose' 'reference to Referee' 'quantification of Costs']
['costs' 'civil Procedure' 'defamation'] ['lump Sum Costs' 'indemnity Costs' 'ordinary Costs' 'overarching Purpose' 'reference to Referee' 'quantification of Costs']

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Procedural Posture

Costs in Defamation Proceeding / Application to Quantify Costs in a Fixed Lump Sum After Previous Costs Orders

Legal Issues

  1. 1 ["Whether the previous costs orders should be varied so that the applicant's costs liability to Network Ten is quantified in a fixed sum rather than referred to a referee." "Whether $2,000,000 was an appropriate broadbrush quantification of Network Ten's recoverable costs."]

Ratio Decidendi

Because Mr Lehrmann was of modest means, there was no real likelihood he would be able to pay a substantial costs order, and a further reference would cause unnecessary expense and delay. Network Ten's evidence showed $3,668,420.83 had been invoiced and paid, with exclusions, recovery allocations and a further 35% discount producing approximately $2,000,000. The Court was satisfied that $2,000,000 was clearly recoverable under the existing costs order and likely represented a real discount, so it was appropriate to quantify Network Ten's costs in that fixed amount.

Court Disposition

Orders varied and judgment entered for Network Ten against Mr Lehrmann for fixed costs of $2,000,000.

Orders

  • ['Pursuant to ss 23, 37P(2) and 43 of the Federal Court of Australia Act 1976 (Cth), the orders made on 10 May 2024 be varied such that the costs payable by the applicant in favour of the respondents be quantified in a fixed sum and Order 3 made on 10 May 2024 be vacated.' 'Judgment be entered in favour of the first...