Clipsal Australia Pty Ltd v Clipso Electrical Pty Ltd (No 4)

Clipsal Australia Pty Ltd brought an application against Clipso Electrical Pty Ltd in the Federal Court of Australia, seeking an indemnity costs order. The dispute involved complex intellectual property issues, with Clipsal being the successful party in the proceedings. Clipsal sought an order for its costs to be paid by Clipso on a lump sum basis, as opposed to the usual taxed costs approach. Clipsal also sought an order that costs awarded at an earlier stage of the proceedings be subject to the same regime and made payable immediately.

The court had to consider whether the principles governing indemnity costs orders permitted a lump sum costs order and whether it was appropriate for the costs to be made payable forthwith. The court found that while indemnity costs orders typically involved a taxed costs approach, there were circumstances where a lump sum costs order was appropriate. Given the complexity of the case and the need to avoid prolonged litigation over the costs, the court was satisfied that a lump sum costs order was appropriate in this case. The court also found that the costs should be made payable forthwith to ensure Clipsal could recover its costs without delay.

The Federal Court of Australia made several orders in relation to the costs. Firstly, the Respondents were to pay the Applicants’ costs of the proceedings on an indemnity basis. Secondly, the Applicants were to be awarded a lump sum for their costs, including those incurred under the orders of 4 February 2016, instead of any taxed costs. The Registrar was directed to determine the quantum of the Applicants’ costs, which the Respondents would then pay within 28 days. The Applicants and Respondents were required to file and serve any evidence they intended to rely upon within 14 days. These orders aimed to ensure Clipsal could recover its costs efficiently and without undue delay.