Segal v Osborne (No 2)

Segal v Osborne (No 2) involved a dispute over the costs incurred in a trust matter. The case before the court was between Segal, the successful plaintiff, and Osborne, the unsuccessful plaintiff. The trustees of the trust were also involved, seeking to recover costs from the trust assets or from Osborne. The dispute centred on whether the trustees were entitled to recover costs on an indemnity basis, whether they could recover costs from the trust assets, and if they should first seek to recover costs from Osborne before turning to other beneficiaries' shares in the trust assets.

The primary legal issues the court had to address were whether the trustees were entitled to recover costs from the trust assets or from Osborne, and if the trustees should first seek to recover costs from Osborne before doing so from other beneficiaries' shares in the trust assets. The court also had to consider whether Osborne should be liable to pay the costs of a third defendant, who had applied to join the proceedings but had not sought any relief and had only participated minimally.

The court concluded that the trustees were entitled to recover costs from the trust assets where it was just and equitable to do so, but they must first seek to recover those costs from Osborne before doing so from other beneficiaries' shares in the trust assets. The court found that Osborne was liable to indemnify the other beneficiary for costs paid out of that beneficiary's notional share of the trust assets, and also liable to pay the costs of the third defendant. The court emphasised the importance of ensuring that trustees act fairly and equitably in seeking to recover costs, and that beneficiaries who have been unsuccessful in their claims should bear a fair share of the costs incurred.