Keating v Morris

In the case of Keating v Morris, the applicant sought an order for costs on an indemnity basis from the Attorney-General. The case was heard in the Federal Court of Australia, where the applicant contended that the standard basis for costs was inadequate given the circumstances of the case. The applicant argued that the case involved exceptional factors justifying a departure from the general rule of costs awarded on a standard basis.

The primary legal issue before the court was whether the applicant was entitled to an order that the costs be assessed on an indemnity basis. The court was required to consider the circumstances that would justify such an order and whether the case met the criteria for exceptional circumstances that warrant an indemnity basis for costs. The court considered the nature of the litigation, the conduct of the parties, and the outcome of the proceedings.

The court deliberated on the nature of the proceedings, noting that the case involved significant public interest and complex legal issues. However, the court found that while the case was indeed complex and of public importance, it did not meet the stringent criteria for an indemnity costs order. The court emphasised the need for exceptional circumstances to justify such an order, and while the case was notable, it did not rise to the level required. Therefore, the court determined that the costs should be assessed on a standard basis.

The final orders of the court mandated that the Attorney-General pay the applicant's costs of and incidental to the application assessed on a standard basis. This decision underscores the stringent criteria required to depart from the general rule in awarding costs and reinforces the principle that such orders are reserved for cases with truly exceptional circumstances.