In the matter of Australian Property Custodian Holdings Limited (in liquidation) (receivers and managers appointed) (as responsible entity of the Prime Retirement Aged Care Property Trust) (No 2)

In the proceedings concerning Australian Property Custodian Holdings Limited, the parties involved were the liquidators of the company and various receivers and managers appointed to the Prime Retirement Aged Care Property Trust. The dispute centred on the allocation of costs and consequential orders, particularly focusing on whether the circumstances warranted a departure from the usual order for costs on a party/party basis. The matter was heard in the Federal Court of Australia.

The primary legal issue before the court was whether the specific circumstances of the case justified a deviation from the standard practice of awarding costs on a party/party basis. This question was critical as it involved the potential for indemnity costs, which could significantly affect the financial outcomes for the parties involved. The court had to consider whether there were exceptional factors present that would support such a departure.

The court meticulously evaluated the particularities of the case, considering factors such as the conduct of the parties, the nature of the litigation, and the outcomes achieved. It determined that while indemnity costs are not typically awarded, there were indeed exceptional circumstances that warranted a deviation from the usual cost order. Consequently, the court ruled in favour of a departure from the party/party basis for costs and ordered that certain costs be paid on an indemnity basis.

The final orders of the court directed that specific costs be paid on an indemnity basis, reflecting the unique aspects of the case that justified such a departure from the norm. This decision provided clarity on the allocation of costs in this particular litigation, ensuring that the financial implications were appropriately addressed.