Resource Equities v Carr Resource Equities v Garrett

Resource Equities Pty Ltd sought indemnity costs against Carr and Garrett following the dismissal of their cross-claims. The primary dispute concerned the conduct of the proceedings, particularly the manifest unsustainability of some claims, the fabrication of evidence by the cross-claimants, and the unsatisfactory nature of their pleadings and responses to requests for particulars. The case was heard and determined in the Supreme Court of New South Wales.

The court had to decide whether the cross-claimants' conduct amounted to "relevant delinquency" in the context of indemnity costs, given the unsustainability of certain claims, the fabrication of evidence, and the inadequacy of the pleadings and responses to requests for particulars. The primary issue was whether these factors warranted the awarding of indemnity costs to Resource Equities.

In addressing these issues, the court noted the clear unsustainability of some of the cross-claims, the deliberate fabrication of evidence by the cross-claimants, and their extremely unsatisfactory response to requests for particulars. The court held that the conduct of the cross-claimants constituted "relevant delinquency" warranting indemnity costs. The unsatisfactory nature of the cross-claims and the responses to requests for particulars further supported this conclusion. Consequently, the court awarded indemnity costs to Resource Equities, reflecting the conduct of the cross-claimants.

The court made orders granting indemnity costs to Resource Equities. The precise amount of the costs was not specified in the provided text, but the court's decision was clear in holding the cross-claimants responsible for the indemnity costs due to their delinquent conduct throughout the proceedings.