SDW Projects Pty Ltd v Modi (No 2)

SDW Projects Pty Ltd commenced proceedings against two firms of solicitors, the first and second respondents, seeking damages for alleged negligence in relation to conveyancing transactions. The third and fourth respondents, who were also firms of solicitors, were later added as defendants for their failure to conclude that the actions taken by the first and second respondents were sufficient to comply with statutory requirements. The applicants and the third and fourth respondents sought their costs against the first and second respondents, which the latter contested on the basis that there was no conflict of interest between them in the presentation of their cases.

The court was required to decide whether the first and second respondents should bear the costs of the proceedings, including the costs of the third and fourth respondents, as sought by the applicants. The first and second respondents argued that the court should not allow two sets of costs to be awarded against them where there was no conflict of interest between them in presenting their cases.

The court held that the first and second respondents were liable to pay the costs of the proceedings as sought by the applicants. The court found that the first and second respondents had failed to comply with the statutory requirements, and their failure had caused the applicants to incur costs in bringing the proceedings. The court further held that the fact that the third and fourth respondents were also defendants did not affect the outcome, as the costs of the third and fourth respondents were incidental to the proceedings and were properly sought by the applicants.

The court ordered that the first and second respondents pay the costs of the applicant of and incidental to the proceedings and of the third and fourth respondents, to be assessed on a standard basis. The order for costs made today extend to the costs of the hearing of 20 April 2012.