Canterbury Municipal Council v Taylor (No 2)

Canterbury Municipal Council v Taylor (No 2) concerned an application for costs orders made by the Court of Appeal of New South Wales. The dispute revolved around whether the Council should be ordered to pay the Taylors' costs on an indemnity basis, or whether a Bullock order or Sanderson order was appropriate.

The primary legal issue before the Court was the appropriate basis for awarding costs against the Council, specifically whether the circumstances warranted an order for indemnity costs, or alternatively, a Bullock or Sanderson order. This required the Court to consider the principles governing the award of indemnity costs and the conditions under which such orders, or the more common Bullock and Sanderson orders, are made.

The Court's reasoning focused on the established principles for awarding indemnity costs, which are generally reserved for cases where a party has acted vexatiously, oppressively, or unreasonably. The Court considered the conduct of the parties in light of these principles. The final orders directed that costs be made in accordance with specific draft minutes of order, indicating a resolution of the costs dispute between the parties.