Shanamere Pty Ltd v Litigation Support Services Pty Ltd

Shanamere Pty Ltd, a beneficiary of a unit trust managed by Litigation Support Services Pty Ltd, sought injunctive relief to compel the defendant to vote in favor of certain resolutions at an extraordinary general meeting of Australian Litigation Fund (ALF), a company in which the unit trust holds shares. After it was determined that the defendant's votes would not affect the outcome, the plaintiff withdrew the application for an injunction. Litigation Support Services Pty Ltd then sought party and party costs, as well as solicitor and client costs or indemnity costs for a limited period during which the plaintiff should have realized that the application was doomed to fail. The defendant also requested that the costs be assessed and paid immediately. The plaintiff countered by requesting party and party costs for a specified period. The court ruled against the defendant's request for indemnity costs and ordered that the plaintiff pay party and party costs, except for the costs associated with the adjourned hearing on 13 January 2006. The defendant's application for immediate assessment and payment of costs was also denied.

The court considered whether the plaintiff's application for injunctive relief was reasonable and whether the defendant's application for indemnity costs was justified. The court found that while the plaintiff's application was initially reasonable, it became clear that it was unlikely to succeed, and the plaintiff should have withdrawn it sooner. However, the court determined that the defendant's application for indemnity costs was not warranted as the plaintiff's actions did not amount to a clear abuse of the court process. The court emphasized that the costs should be assessed and paid on a party and party basis, except for the costs related to the adjourned hearing on 13 January 2006, which were to be borne by the plaintiff. The defendant's application for immediate assessment and payment of costs was rejected as the court believed that the usual process for assessing and paying costs should be followed.