Kendirjian v Ayoub (No 2)

In *Kendirjian v Ayoub (No 2)*, the New South Wales Court of Appeal considered an application for costs arising from an appeal where the appellant's legal representatives were found to have engaged in delinquent conduct. The dispute centred on the inadequacy of the appellant's written submissions, which led to significant delays and additional work, ultimately impacting the client's ability to fulfil their duty to assist the court in achieving the overriding purpose of the *Civil Procedure Act 2005*.

The primary legal issue before the Court of Appeal was whether the costs incurred by the respondent due to the appellant's legal practitioners' serious neglect should be payable on an ordinary or indemnity basis. The court was also required to determine the extent to which the appellant's legal practitioners should be held personally liable for these wasted costs.

The Court of Appeal reasoned that the conduct of the appellant's legal practitioners amounted to a serious neglect of their duties, causing the appellant to breach their obligation to assist the court. Applying the principles of wasted costs, the court determined that indemnity costs were warranted for specific aspects of the appeal, including preparation for and attendance at the hearing on 29 October 2007, the preparation of written submissions, and the hearing of a Notice of Motion. The court further ordered that the legal practitioners involved, J W Conomos and Eugene Lepore, were to personally pay 50% of the total indemnity costs to the appellant. Otherwise, the costs of the appeal were to be paid on the ordinary basis.