Warne v ACN 603 541 411 Pty Ltd trading as Chandlers International Lawyers (No 2)

The appeal concerned an application for indemnity costs. The appellant, Mr Warne, sought an order that the respondent, ACN 603 541 411 Pty Ltd trading as Chandlers International Lawyers, pay his costs of the appeal on an indemnity basis. The appeal was heard by Ward ACJ, Mitchelmore and Kirk JJA in the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the circumstances warranted an award of indemnity costs, rather than the usual order for costs on the ordinary basis. This required the court to consider whether the respondent's conduct in the litigation had been unreasonable or vexatious, thereby justifying a departure from the standard costs rule.

The Court of Appeal determined that there was no basis to depart from the ordinary rule for the assessment of costs. The court found that the respondent's conduct had not been unreasonable or vexatious in a manner that would justify an award of indemnity costs. Accordingly, the court confirmed that the order for costs made on 3 April 2025 would operate on the ordinary basis.