Belconnen Lakeview Pty Ltd v Lloyd (No 2)

The appeal, cross-appeal and cross-cross-appeal concerned the costs of interlocutory applications made in a proceeding between the applicant Belconnen Lakeview Pty Ltd and Mrs Lloyd, as well as the costs of the proceeding at first instance. The applicant appealed the orders of the primary judge and the respondents cross-appealed the orders of the primary judge. The cross-cross-appeal was brought by Mr Hindmarsh and Mr Ryan against the orders of the primary judge. The Federal Court of Australia heard the appeal, cross-appeal and cross-cross-appeal.

The court was required to decide whether there were any grounds to depart from the usual order that costs follow the event, and whether there were any grounds to order costs on an indemnity basis. The court considered whether the primary judge’s orders were correct and whether the respondents’ applications for indemnity costs were justified.

The court rejected the application for the costs to be ordered on an indemnity basis, finding that there were no exceptional circumstances that warranted such an order. The court also found that the primary judge’s orders were correct and that there were no grounds to depart from the usual order that costs follow the event. The court ordered that Belconnen pay Mrs Lloyd’s costs of Belconnen’s interlocutory applications, and that Mrs Lloyd pay Belconnen’s, Mr Hindmarsh’s and Mr Ryan’s costs of the proceeding on a party-party basis. The court also ordered that the costs of the proceeding be the subject of a lump sum costs assessment, to be conducted by a Registrar.

The court made orders dismissing the interlocutory applications, remitting the matter to the primary judge, and ordering costs on a party-party basis. The costs of the proceeding at first instance were ordered to be the subject of a lump sum costs assessment, to be conducted by a Registrar.