Helby v Council for the Law Society of New South Wales (No. 2)

The case before the High Court was brought by Helby against the Council for the Law Society of New South Wales. The applicant sought a declaration that certain fees charged by the council to practising lawyers were unlawful. The matter was heard in the High Court of Australia. The central legal issue before the court was whether the conduct of the first defendant, the Law Society, warranted an award of indemnity costs to the applicant. The applicant argued that the society's conduct was vexatious and oppressive, and thus, indemnity costs should be awarded. The society, on the other hand, contended that such costs should not be awarded as the proceedings were not without merit.

The High Court considered the principles governing costs in Australian litigation, particularly the general rule that costs follow the event. The court examined the conduct of the society throughout the proceedings, including its handling of the applicant's application for relief. The court found that the society's conduct was not only vexatious and oppressive but also demonstrated a clear disregard for the applicant's rights. This conduct justified the award of indemnity costs to the applicant. The court emphasised the importance of protecting litigants from oppressive and vexatious litigation, especially when the proceedings were brought in good faith and had some basis in law.

The court concluded that the society's conduct warranted the award of indemnity costs to the applicant. The court recognised that the applicant's proceedings, although ultimately unsuccessful, were not devoid of merit and were brought in good faith. The court ordered that the society pay the applicant's costs on an indemnity basis, reflecting the vexatious and oppressive nature of the society's conduct. This decision underscores the importance of ensuring that legal proceedings are conducted in a fair and respectful manner, and that litigants who are subjected to oppressive litigation are appropriately compensated.