A2B Australia Limited & Anor v Oz Power Group Pty Ltd & Anor

A2B Australia Limited and another party (the applicants) brought proceedings against Oz Power Group Pty Ltd and another party (the respondents) concerning trade mark infringement. The matter was heard by Judge Baird in the Federal Court of Australia.

The primary legal issues before the Court were whether the applicants should be awarded costs on an indemnity basis, whether those costs should be ordered as a lump sum, and whether the Federal Court scale of costs was appropriate. The Court also considered whether there were justifying circumstances to make an indemnity costs order, particularly in light of an offer to compromise made by the applicants that was allegedly unreasonably refused by the respondents.

Judge Baird determined that the applicants were entitled to costs on a standard basis, but not on an indemnity basis. The Court found that while the applicants had made an offer to compromise, the respondents' refusal of that offer did not, in the circumstances, constitute unreasonable conduct that would warrant an indemnity costs order. The Court also declined to order costs as a lump sum, finding no justification for departing from the usual process of taxation. The Federal Court scale of costs was deemed appropriate for the assessment.