Douglas v Racing Victoria Ltd and Anor (No.2)

In *Douglas v Racing Victoria Ltd and Anor (No.2)*, the Federal Court of Australia considered an application for costs following earlier proceedings. The applicant, Douglas, sought an order for costs against the respondents, Racing Victoria Ltd and another party, on an indemnity basis.

The primary legal issue before the Court was whether costs should be awarded on an indemnity basis or a party-party basis, and if so, how those costs should be taxed. This involved determining whether the amount claimed by the applicant was reasonable and whether the taxation should proceed under Part 40 of the *Federal Court Rules*.

Justice Kelly applied the principle of "follow the event," which generally dictates that the unsuccessful party pays the costs of the successful party. However, the Court also considered the proportionality of the costs claimed to the amount in dispute and the complexity of the proceedings. The Court found that an indemnity basis for costs was not warranted in this instance, and therefore, costs were to be taxed on a party-party basis in accordance with the *Federal Court Rules*.