Twelve Walker Street Pty Ltd v Lee (No 2)

The case involved Twelve Walker Street Pty Ltd, the applicant, and Lee, the respondent. The applicant sought to impose an easement over the respondent's property, located at 12 Walker Street. The dispute arose from a previous decision, where the court had ordered a further hearing to consider the imposition of an easement. The case was heard in the Supreme Court of Victoria. The legal issues that the court was required to decide were whether the ordinary rule that the applicant pays the costs of the proceedings should be departed from, and if so, to what extent. The court was also required to consider the respondent's failure on a threshold question and their conduct of the defence.

The court held that the ordinary rule that the applicant pays the costs of the proceedings should be departed from. The court found that the respondent's failure on a threshold question and their conduct of the defence warranted a departure from the ordinary rule. The court found that the respondent had failed to establish that the proposed easement was necessary, and their conduct of the defence was unreasonable and vexatious. The court held that the respondent's conduct was such that it was just and equitable to order the respondent to pay the applicant's costs of the proceedings. The court ordered that the respondent pay the applicant's costs of the proceedings on an indemnity basis, which means that the respondent is required to pay the applicant's costs, including legal costs on a full indemnity basis.