Mottershead Investments Pty Ltd v Aircraft Support Industries Engineering Pty Ltd (in Liquidation) and Ors (No.2)

Mottershead Investments Pty Ltd (the applicant) sought indemnity costs of the whole proceedings against Aircraft Support Industries Engineering Pty Ltd (in Liquidation) (the first respondent) and another party. The second respondent opposed the applicant's claim for indemnity costs and instead sought costs of various interlocutory applications. The matter came before Judge Driver.

The primary legal issue before the court was whether the applicant was entitled to an order for indemnity costs of the entire proceedings. A secondary issue concerned the second respondent's entitlement to costs for specific interlocutory applications.

Judge Driver considered the principles governing the award of indemnity costs, which are exceptional and require a demonstration of unreasonable conduct. The court noted that while the applicant had been successful, the conduct of the respondents did not meet the high threshold for an award of indemnity costs. The court found that the respondents' conduct, while perhaps not ideal, did not warrant such an exceptional order. Regarding the interlocutory applications, the court determined that the costs associated with these applications should follow the event, meaning the successful party in relation to each application would generally be entitled to their costs.

The court ordered that the applicant was not entitled to indemnity costs of the whole proceedings. The court also made orders regarding the costs of the interlocutory applications, which were to be determined based on the outcome of those specific applications.