Air Link Pty Ltd v Paterson (No 2)

The appeal in *Air Link Pty Ltd v Paterson (No 2)* concerned the appropriate basis for awarding costs following an appeal heard by Allsop P, Ipp JA, and Sackville AJA. The dispute revolved around the costs incurred in the appeal proceedings, specifically whether they should be awarded on a party/party or indemnity basis, and from what point in time.

The primary legal issue before the court was to determine the appropriate costs order to be made in relation to the appeal proceedings. This involved considering the conduct of the parties and the circumstances surrounding the litigation to ascertain whether a departure from the usual party/party costs order was warranted, and if so, on what basis and from which date.

The court varied the costs order previously made. It ordered that the appellant pay the respondent's costs of the appeal proceedings on a party/party basis up to and including 27 July 2009. Thereafter, the appellant was ordered to pay the respondent's costs on an indemnity basis. Additionally, the appellant was ordered to pay the respondent's costs of the motion.