State of New South Wales v Delly

The High Court of Australia considered an appeal by the State of New South Wales against a decision of the Supreme Court of New South Wales concerning the interpretation of a statutory indemnity. The dispute arose from a claim brought by Mr Delly against the State, seeking to recover costs incurred in defending criminal proceedings that were ultimately stayed. The core of the matter was whether the indemnity provided by the *Crimes (Appeal and Review) Act 1990* (NSW) extended to cover the costs of defending the proceedings themselves, or only costs incurred on appeal.

The High Court was required to determine the proper construction of section 12(1) of the *Crimes (Appeal and Review) Act 1990* (NSW). Specifically, the Court had to ascertain whether the indemnity granted to a person who successfully appeals against a conviction or sentence extended to encompass the costs of defending the original proceedings that led to that conviction or sentence, where those proceedings were stayed before verdict.

The Court reasoned that the language of section 12(1) indicated that the indemnity was intended to cover costs incurred in relation to the appeal process itself, not the defence of the original proceedings. The provision referred to costs "incurred in or in connection with the appeal". The Court held that the costs of defending the proceedings that were stayed were not costs incurred "in or in connection with the appeal" within the meaning of the section. Therefore, the statutory indemnity did not extend to cover Mr Delly's defence costs.

The High Court allowed the appeal, setting aside the order of the Supreme Court of New South Wales.