Callaghan v Zevering (No 2)

In the matter of Callaghan v Zevering (No 2), the court was called upon to determine the issue of costs associated with two distinct applications within the proceedings. The principal application was brought by the trustees concerning the remuneration of trustees, while the cross-application pertained to related matters. The court was tasked with deciding how the costs of these applications should be allocated and who should bear the financial burden.

The central legal issue before the court was the apportionment of costs between the parties involved in the applications. Specifically, the court needed to decide whether the costs of the whole action should follow the event, meaning the costs would be borne by the party that did not prevail in the proceeding. Additionally, the court had to determine the appropriate basis for calculating these costs, whether on an indemnity basis or otherwise.

The court ruled that the costs of the applicant's application, to the extent not already provided for by a previous order, should be paid out of the estate of the Outlook Estate Unit Trust on an indemnity basis. This means that the losing party would bear the full costs of the winning party's legal expenses. Furthermore, the court ordered that the first respondent should pay the applicants' standard costs of and incidental to the cross-application. This decision ensured that the financial responsibility for the legal proceedings was appropriately assigned based on the outcomes of the respective applications.