Walshe v Prest [No 2]

The case of *Walshe v Prest [No 2]* concerned an appeal before the Full Court of the Federal Court of Australia. The dispute arose from an earlier decision of the Court, and the present proceedings focused on the appropriate order for costs following that earlier decision. The appellant sought to vary an existing costs order made on 27 September 2005.

The primary legal issue before the Full Court was whether the costs order made in the initial appeal should be varied to require the appellant to pay the respondent's costs on an indemnity basis, rather than the standard basis previously ordered. This required the Court to consider the circumstances under which indemnity costs might be awarded.

The Full Court reasoned that the appellant's conduct in the proceedings warranted an award of indemnity costs. While the specific details of that conduct are not elaborated in the provided text, the Court's decision to vary the order indicates a finding that the appellant's actions were of a nature that justified departing from the usual order for costs on a party and party basis. The Court applied the principle that indemnity costs may be awarded where a party has engaged in unreasonable or vexatious conduct, or where there are other special circumstances justifying such an order.

Consequently, the Full Court varied the order made on 27 September 2005, ordering that the appellant pay the respondent's costs of the appeal on an indemnity basis.