Lawes v Nominal Defendant

The appeal in Lawes v Nominal Defendant involved the appellant, Lawes, and the respondent, Nominal Defendant. The dispute was centred on the assessment of costs following an unsuccessful appeal by Lawes against a lower court decision. The matter was heard in the Supreme Court of Queensland. The respondent sought costs on an indemnity basis, arguing that they had made an offer to Lawes shortly after the appeal was initiated, which Lawes had refused.

The central legal issue before the court was whether the ordinary rule regarding costs should be departed from in this case. The ordinary rule in Queensland generally allows for costs to be awarded on the standard basis, unless there are exceptional circumstances warranting an indemnity costs order. The respondent contended that their offer to settle shortly after the appeal was lodged was such an exceptional circumstance. The court had to determine whether this offer was sufficient grounds to depart from the standard rule.

The court found that the offer made by the respondent was not sufficiently compelling to warrant a departure from the ordinary rule for costs. The court emphasised the importance of the standard basis for awarding costs in the absence of exceptional circumstances. It was noted that the offer was made after the initiation of the appeal, but this alone did not constitute an exceptional circumstance. Consequently, the application for indemnity costs was dismissed. Additionally, the respondent was ordered to pay Lawes’ costs of and incidental to the application for indemnity costs, to be assessed on the standard basis.