Calvary Healthcare ordered to pay most of ACT government's legal costs

"The challenge was built upon the proposition, ultimately rejected by the court, that the [takeover legislation] itself failed to provide just terms for the acquisition," Chief Justice Lucy McCallum said in a judgement published on Thursday.

The dollar amount Calvary is set to pay is unknown.

However, the judge, who briefly presided over the ACT Supreme Court on Thursday, said the religious healthcare provider would pay legal costs from the start of proceedings up to June 28.

The end date represents when amendments were made to the regulation, relating to acquisitions terms and compensation, which led Calvary to announce in early July it "did not wish to proceed with the balance of proceedings".

The court heard then that Calvary and the government had engaged in dialogue and made appropriate amendments to appease both parties.

Chief Justice McCallum said the court's judgement on costs needed to recognise Calvary's failed challenge to the validity of the takeover legislation.

It also needed to recognise the challenge "has been conducted reasonably".

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The healthcare provider submitted that "each side should bear its own costs of the proceedings".

The territory submitted that Calvary was "wholly unsuccessful in its challenge" and that "this was not a proper case in which to attempt any apportionment of costs".

The Senate on Wednesday voted down a last-ditch attempt, led by Liberal National senator Matt Canavan, to conduct an inquiry into the hospital's takeover.

Chief Justice McCallum officially granted Calvary leave on Thursday to discontinue legal proceedings.

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