Gideona v Suncorp Metway Insurance Ltd

Gideona initiated legal proceedings against Suncorp Metway Insurance Ltd, with the dispute centred on the terms and conditions of an insurance policy. The case was heard and determined in the Queensland Supreme Court. The plaintiff sought an order for costs on an indemnity basis following the striking out of two paragraphs of the second defendant's defence, which were deemed to disclose no reasonable defence. The second defendant argued that the court should not depart from the general rule of ordering costs on an indemnity basis as per rule 171(2) of the Uniform Civil Procedure Rules.

The court examined whether the circumstances of the case warranted a departure from the general rule of ordering costs on an indemnity basis. The plaintiff contended that the striking out of the defence paragraphs justified such an order, while the second defendant maintained that the rule should not be deviated from absent exceptional circumstances. The court considered the principles guiding the imposition of costs on an indemnity basis, including whether there were exceptional circumstances justifying such an order.

In its reasoning, the court found that the striking out of the defence paragraphs did not constitute exceptional circumstances warranting an order for costs on an indemnity basis. The court noted that the general rule regarding costs orders should be followed unless there were compelling reasons to do otherwise. Consequently, the court refused the plaintiff's application for costs on an indemnity basis, maintaining the cost orders as previously determined in Gideona v Suncorp Metway Insurance Ltd & Anor [2005] QSC 275 on 3 October 2005.