Lu v Ao-Zhong International Mineral Resources Pty Ltd (No.2)

The proceeding involved an application by the applicant, Lu, seeking orders for indemnity costs against the respondent, Ao-Zhong International Mineral Resources Pty Ltd, and also seeking orders that the respondent's former solicitors, HWL Ebsworth, be held liable for costs incurred by the applicant due to the solicitors' conduct. The dispute arose in the context of proceedings under the *Fair Work Act 2009* (Cth), where the applicant alleged that the respondent had engaged in unreasonable acts or omissions that caused the applicant to incur costs.

The central legal issues before the court were whether the respondent's conduct constituted an unreasonable act or omission that caused the applicant to incur costs, thereby justifying an award of indemnity costs against the respondent. Additionally, the court was required to determine whether the former solicitors for the respondent, HWL Ebsworth, should be held liable for costs. This latter issue involved assessing whether the solicitors had followed proper procedure when ceasing to act for the respondent and whether they remained on the court record at the time of the hearing concerning costs and conduct. The court also considered whether the conduct of HWL Ebsworth warranted a referral to the appropriate professional disciplinary body.

Justice Lucev found that the respondent had engaged in unreasonable conduct that caused the applicant to incur costs, justifying an award of indemnity costs against the respondent. Regarding HWL Ebsworth, the court determined that the solicitors had not followed the proper procedure for ceasing to act and remained on the court record at the relevant time. Consequently, the court ordered that HWL Ebsworth be liable for the costs incurred by the applicant as a result of their failure to properly cease to act and their non-appearance at the hearing. The court also referred the conduct of HWL Ebsworth to the Legal Profession Conduct Commissioner for investigation.