In the matter of Legal Practice Management Group Pty Ltd, nSynergy Pty Ltd, nSynergy International Pty Ltd

The case involves an application by Legal Practice Management Group Pty Ltd, nSynergy Pty Ltd, and nSynergy International Pty Ltd for leave to appeal against a decision that would require them to pay the costs of proceedings. The dispute arose from derivative proceedings brought on behalf of the companies. The matter was heard in the Supreme Court of Queensland. The applicants sought leave to appeal a decision that costs should be paid by the companies.

The legal issues before the court included whether the court should depart from the general principle that costs follow the event and whether the late offer of personal indemnities by the applicants was sufficient to warrant an order for indemnity costs. The applicants argued that the late offer of indemnities should be considered in light of the circumstances of the case, and that the court should take into account the potential hardship that would be caused by an order for indemnity costs.

The court found that the general rule that costs follow the event was not inflexible and could be departed from in appropriate circumstances. The court also found that the late offer of personal indemnities by the applicants was a factor that could be considered in determining whether to grant leave to appeal. However, the court decided that the order for indemnity costs should be stayed until the final determination of the derivative proceedings. The court was not satisfied that the applicants had demonstrated that they were likely to succeed on appeal, and that the costs would be disproportionate if they were required to pay the costs of the proceedings at that stage.

The court granted the application for leave to appeal but stayed the order for indemnity costs until the final determination of the derivative proceedings. The court considered that it was in the interests of justice to do so, given the potential hardship that would be caused by an order for indemnity costs at that stage. The court also noted that the applicants had offered personal indemnities for the companies’ costs of the proceedings, which was a factor that could be taken into account in determining whether to grant leave to appeal. The court concluded that the application for leave to appeal should be granted, but that the order for indemnity costs should be stayed until the final determination of the derivative proceedings.