Moyes v J & L Developments Pty Ltd (No 3)

In the case of Moyes v J & L Developments Pty Ltd (No 3), the dispute involved the appellants, Moyes, and the second respondent, seeking an order for costs on an indemnity basis against the first respondent, J & L Developments Pty Ltd. The case was heard in the Supreme Court of Queensland. The central issue before the court was whether the conduct of the first respondent, J & L Developments Pty Ltd, could be described as the conduct of a party as a litigant, warranting an order for costs on an indemnity basis. The appellants and second respondent argued that the first respondent's conduct was such that it should be held liable for costs on an indemnity basis, departing from the general rule.

The court considered the principles relevant to the departure from the general rule of costs. It examined whether the first respondent's conduct was egregious enough to warrant such an order. The court noted that costs on an indemnity basis are not awarded lightly and are reserved for cases of exceptional conduct. The court found that while the first respondent's conduct might have been vexatious, it did not reach the level of exceptional misconduct required for an indemnity order. The court held that the first respondent's actions did not justify departing from the general rule for costs, and the application for costs on an indemnity basis was dismissed.

Consequently, the application by the appellants and second respondent for an order that costs be paid on an indemnity basis was dismissed. The court's reasoning was based on the assessment that the first respondent's conduct, though vexatious, did not meet the threshold for exceptional misconduct warranting an indemnity costs order. The court adhered to the principle that such orders are reserved for cases where the conduct of the party as a litigant is markedly egregious.