Australian Federation of Islamic Councils Inc v Farrell

The Australian Federation of Islamic Councils Inc (AFIC) sought leave to appeal against a primary judge's decision to dismiss its application that the respondents' solicitors personally pay AFIC's costs on an indemnity basis. The dispute arose from proceedings commenced ex parte without authority. The application for leave to appeal was heard by Ward JA and Emmett AJA.

The central legal issue before the Court of Appeal was whether the primary judge erred in dismissing AFIC's application for indemnity costs against the respondents' solicitors. This required the court to consider the circumstances under which a court may order a solicitor to personally pay costs on an indemnity basis, particularly in the context of proceedings commenced without proper authority.

The Court of Appeal dismissed the application for leave to appeal. Their Honours reasoned that the primary judge had not erred in dismissing the application for indemnity costs. The court noted that the amount in issue was small and that there was no question of principle involved that would warrant an order for indemnity costs against the solicitors personally.

The application for leave to appeal was dismissed with costs.