The court provided guidance on factors to consider when exercising discretion on costs, including: (a) conduct of parties leading to litigation, including reckless, willful, malicious, illegal or bad faith conduct; (b) objective reasonableness of applications and defences raised; (c) whether conduct requires costs awards that would deter others from asserting meritless claims; (d) reasonableness and diligence of parties and their attorneys; and (e) reasonableness in pursuing settlement. The court emphasized that costs normally follow the event, based on the principle that successful litigants should be indemnified from expenses incurred by being unjustifiably compelled to initiate or defend litigation. The court observed that in bringing proceedings, a party must reasonably believe it has chances of succeeding, and bringing proceedings without any chance of success amounts to abuse of court process.