JM Kelly Buildings Pty Ltd v Murphy

The case of JM Kelly Buildings Pty Ltd v Murphy involved a dispute where the second defendant sought an order that the plaintiff pay the costs incurred during a period in which the statement of claim was amended multiple times. The second defendant argued that the costs incurred during this period were wasted and sought indemnity costs on this basis. The court was required to determine whether the costs incurred during the relevant period were indeed wasted, and whether indemnity costs could be awarded when the matter was still at an interlocutory stage. The matter was heard in the court, which was tasked with considering the arguments put forward by both parties and making a decision on the issue of costs.

The court considered the legal principles surrounding the awarding of costs in circumstances where the statement of claim has been amended multiple times. It was necessary to determine whether the costs incurred during the relevant period were wasted, and if so, whether indemnity costs could be awarded. The court also needed to consider whether it was appropriate to award indemnity costs at an interlocutory stage, or whether such an award should be reserved until the conclusion of the matter. These issues required careful consideration of the relevant legal principles and the specific circumstances of the case.

After considering the arguments put forward by both parties, the court determined that the costs incurred during the relevant period were indeed wasted due to the multiple amendments to the statement of claim. The court found that the second defendant was entitled to be awarded costs on an indemnity basis for the costs thrown away by the amendments made on 5 May 2020 and 7 October 2022. The court held that it was appropriate to make an order for indemnity costs at this interlocutory stage, as the second defendant had suffered a significant financial burden due to the wasted costs. The court ordered that the plaintiffs pay the defendants the costs thrown away by the amendments of the claim and statement of claim on 5 May 2020 and 7 October 2022.