Palmer Bruyn & Parker Pty Ltd v Parsons (No 2)

Palmer Bruyn & Parker Pty Ltd (the applicant) sought indemnity costs against Parsons (the respondent) following earlier proceedings. The dispute concerned the applicant's entitlement to indemnity costs, which are awarded in exceptional circumstances, as opposed to party-and-party costs, which are the usual order. The matter was heard by Stein and Heydon JJA, and Foster AJA in the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the respondent's conduct in the earlier proceedings warranted an award of indemnity costs in favour of the applicant. Specifically, the court had to determine if the respondent's actions constituted a departure from the ordinary standards of litigation conduct that would justify deviating from the usual costs order.

The court considered the principles governing the award of indemnity costs, which require a high threshold to be met. It was held that the respondent's conduct did not reach the level of unreasonable or improper behaviour necessary to justify such an exceptional order. The court applied the established legal principles that indemnity costs are not awarded merely because a party has lost, but rather where there has been some form of misconduct or unreasonable conduct in the litigation process.

Consequently, the Court of Appeal dismissed the applicant's application for indemnity costs.