Aldridge v Johnston (No 2)

Aldridge (the appellant) appealed against orders made by a single judge of the Supreme Court of South Australia in proceedings between Aldridge and Johnston (the respondent). The dispute concerned the award of indemnity costs to the respondent.

The primary legal issue before the Full Court was whether the single judge had erred in exercising their discretion to award indemnity costs to the respondent. This involved considering whether the appellant's conduct in the litigation warranted such an order, particularly in light of the principles governing the award of indemnity costs.

The Full Court held that the single judge had not erred in their exercise of discretion. Their Honours found that the appellant's conduct, including their failure to accept a reasonable offer of settlement and their pursuit of a claim that was ultimately unsuccessful and lacked a proper evidentiary basis, justified the award of indemnity costs. The Court reiterated that indemnity costs are an exception to the general rule that costs follow the event and are awarded where a party's conduct has been unreasonable or vexatious, thereby causing the other party to incur costs that would otherwise not have been necessary.

The appeal was dismissed, and the orders of the single judge, including the award of indemnity costs to the respondent, were affirmed.