Manzo v CSM Lawyers Pty Ltd

Manzo was the appellant in a case against CSM Lawyers Pty Ltd, an incorporated legal practice. The dispute arose from a sequestration order affirmed against the appellant by a registrar, which the appellant had appealed. The appellant subsequently discontinued the appeal and made an application to withdraw it the day before the hearing, which was deemed to be an application for leave to discontinue the appeal with no order as to costs. The respondent, seeking costs, filed an interlocutory application, asking for either indemnity or party and party costs. The court was required to decide whether, in light of Bell Lawyers Pty Ltd v Pentelow, the respondent was entitled to costs as an incorporated legal practice representing itself, and if so, the appropriate basis and amount of those costs.

The court considered that the matter of costs for an incorporated legal practice representing itself had been addressed in Bell Lawyers Pty Ltd v Pentelow. The respondent, as an incorporated legal practice, was not entitled to costs on an indemnity or party and party basis. However, the respondent was entitled to be compensated for its outlays, which would be allowed to any litigant in person in whose favour a costs order was made. The court emphasised that this included costs reasonably incurred in retaining counsel for any appearance or preparation of submissions. The appellant’s application to discontinue the appeal was dismissed, and the respondent's application for costs was dismissed, except for the awarding of outlays.

The court ordered that the appellant’s application for leave to discontinue the appeal, deemed to be made on the basis that there be no order as to costs, was dismissed. The respondent's interlocutory application was also dismissed, except for the allowance of the respondent's outlays as determined by a registrar if not agreed. These outlays included costs reasonably incurred in retaining counsel for any appearance or the preparation of submissions. There was no order as to costs in respect of the appeal, including in respect of either the deemed application for leave to discontinue or the respondent's interlocutory application.