Vaile and Labrum and Ors (No.2)

In *Vaile and Labrum and Ors (No.2)*, heard by Judge A Kelly, the applicant sought indemnity costs against the first respondent. The dispute concerned the applicant's entitlement to costs following earlier proceedings, with the applicant arguing that the first respondent's conduct warranted an order for indemnity costs rather than the usual order for each party to bear their own costs.

The central legal issue before the court was whether the first respondent's conduct justified departing from the general principle that parties bear their own costs and, if so, the appropriate quantum of those costs. The court was required to consider the relevant factors that would permit an award of indemnity costs and to determine the method for setting the amount of such costs, including whether to fix the quantum directly or refer the matter for taxation.

Judge A Kelly determined that the first respondent's conduct warranted an order for indemnity costs. The court applied the principle that while parties generally bear their own costs, this principle can yield to the court's power to award costs in circumstances where it is just to do so. Having found grounds for such an award, the court exercised its power to set the quantum of the costs directly.

The court ordered that the first respondent pay the applicant's costs of and incidental to the proceeding, fixed in the sum of $15,000. Additionally, a previous order of 23 October 2019 was varied to include a provision for the payment of these costs.