Walker v New South Wales Bar Association (No 2)

In Walker v New South Wales Bar Association (No 2), the applicant, Walker, sought relief in the Federal Court of Australia from the orders of the New South Wales Bar Association, and two of its members. The primary issue before the court was the allocation of costs between the parties, particularly given the circumstances where two of the respondents were indemnified by the first respondent and the potential for conflict between the respondents despite their similar interests. The court also needed to determine whether the third respondent was entitled to indemnity costs following an offer of compromise, considering the certainty of the offer's terms and whether it involved any element of compromise.

The court held that the applicant should bear the costs of the proceeding, subject to specific conditions. Given that the second and third respondents were indemnified by the first respondent, the court considered the possibility of a conflict between the respondents, which warranted separate representation. Despite this, the court ruled that the applicant should still pay the respondents' costs. However, concerning the second respondent's application for costs on an indemnity basis, the court found no grounds for an order, as the terms of the offer of compromise were not sufficiently certain and did not involve an element of compromise. The court's reasoning was based on the necessity to protect the interests of the respondents while ensuring that the costs were allocated fairly and justly.

Ultimately, the court ordered that the applicant would pay the respondents' costs of the proceeding, to be taxed in default of agreement. However, no order was made regarding the costs of the second respondent's application for costs on an indemnity basis from a specific date, due to the reasons outlined above. This decision reflects the court's careful consideration of the complex interplay between the parties' interests, the nature of the offer of compromise, and the principles of cost allocation in litigation.