Collins v Djunaedi (No 2)

Collins was the plaintiff and Djunaedi was the defendant in proceedings before the Supreme Court of South Australia. The dispute concerned an application for indemnity costs following earlier proceedings in which the plaintiff had been successful.

The central legal issue before the Full Court of the Supreme Court of South Australia was whether the defendant should be ordered to pay the plaintiff's costs on an indemnity basis. This required the Court to consider the circumstances under which indemnity costs are awarded, particularly in light of the defendant's conduct during the litigation.

The Court reasoned that an award of indemnity costs is an exception to the general rule that costs follow the event. Such an award requires a demonstration of conduct that is unreasonable or improper, going beyond mere failure to establish a defence. In this instance, the Court found that the defendant's conduct, including a failure to engage in settlement discussions and a persistent, albeit unsuccessful, defence, did not meet the high threshold for indemnity costs. The Court applied the principles that indemnity costs are reserved for cases where a party has acted vexatiously, abusively, or unreasonably, and that the onus is on the party seeking indemnity costs to establish such conduct.

The Court dismissed the plaintiff's application for indemnity costs.