Ashala Model Agency Pty Ltd (in liq) v Featherstone (No 2)

Ashala Model Agency Pty Ltd (in liquidation) was a plaintiff in a dispute against Featherstone, who was the first defendant, and another party, the third defendant, in a matter heard by the Supreme Court of Queensland. The dispute centred around the recovery of real property and a claim for rent payable under a lease. The second plaintiff sought to recover the property from the first defendant, with the latter having a right to prove for the rent in the winding up of the first plaintiff. The case involved procedural issues, specifically the requirement to join the third defendant as a party and the adjournment of the trial due to the defendants' conduct.

The legal issues before the court were whether the defendants should be liable for the plaintiffs' costs and, if so, whether those costs should be assessed on the indemnity or standard basis. The court had to determine if the joinder of the third defendant and the adjournment of the trial were justified and whether the defendants' actions warranted an order for costs.

The court found that the defendants' conduct, which led to the joinder of the third defendant and the adjournment, was unjustifiable and resulted in wasted costs for the plaintiffs. The court held that the first and third defendants should pay the second plaintiff's costs occasioned by the joinder and the adjournment, to be assessed on the indemnity basis. Otherwise, the first defendant was ordered to pay the second plaintiff's costs of the proceeding.

In summary, the court ruled that the first and third defendants were responsible for the costs related to the joinder and the adjournment, to be assessed on the indemnity basis, while the first defendant bore the remaining costs of the proceeding.