Lenardi & Lenardi (No. 3)

In *Lenardi & Lenardi (No. 3)*, Collier J of the Supreme Court of Western Australia considered an application by the respondent, Mr. Lenardi, for an order that the applicant, Ms. Lenardi, pay his costs of the proceedings. The dispute arose in the context of proceedings concerning the division of property between the parties, who were formerly married. Mr. Lenardi sought an order that Ms. Lenardi pay his costs on an indemnity basis, or alternatively, on a standard basis.

The primary legal issue before the court was whether Ms. Lenardi's conduct in the litigation warranted an award of costs against her on an indemnity basis. This required the court to consider whether her conduct had been unreasonable, vexatious, or otherwise amounted to an abuse of process, thereby justifying a departure from the usual order for costs to be assessed on a standard basis. The court also had to determine if there were any grounds for ordering costs on a standard basis.

Collier J reasoned that an award of costs on an indemnity basis is an exceptional remedy, reserved for cases where a party's conduct has been egregious. Her Honour reviewed the history of the proceedings and the specific actions of Ms. Lenardi, including her approach to settlement negotiations and her participation in the litigation. While acknowledging that Ms. Lenardi's conduct had not been ideal and had contributed to the length and complexity of the proceedings, Collier J concluded that it did not reach the high threshold required for an indemnity costs order. Her Honour found that Ms. Lenardi's actions, while perhaps not always prudent, did not demonstrate the level of unreasonableness or vexation necessary to depart from the general rule.

Consequently, Collier J ordered that Ms. Lenardi pay Mr. Lenardi's costs of the proceedings on a standard basis, with the costs to be assessed.