Watson v State of Western Australia (No 3)

Oil Basins Limited (OBL) applied to limit the participation of the State of Western Australia and Backreef Oil Pty Ltd in the native title proceedings brought by the Kimberley Land Council (KLC). The application was heard by the Federal Court, which found in favour of the applicant. The court limited OBL's participation in the proceedings to leading evidence and making submissions in respect of the matters listed in the Native Title Act 1993 (Cth) s 225(c) and (d). The court also ordered OBL to pay the applicant's costs of the interlocutory application, including any costs thrown away by reason of OBL changing its position on the issue of connection, on an indemnity basis forthwith.
The court held that the State of Western Australia and Backreef Oil Pty Ltd had unreasonably delayed the proceedings by unreasonably prolonging the assessment of the applicant's connection evidence. The court found that OBL had acted unreasonably by changing its position on the issue of connection and that this had caused the applicant to incur costs that would not have been incurred but for OBL's unreasonable conduct. The court held that the costs incurred by the applicant were foreseeable and that OBL was liable to pay those costs on an indemnity basis forthwith.

The final orders of the court were that OBL's participation in the proceeding be limited to leading evidence and making submissions in respect of the matters listed in the Native Title Act 1993 (Cth) s 225(c) and (d). OBL was ordered to pay the applicant's costs of the interlocutory application dated 6 May 2013, including any costs thrown away by reason of OBL changing its position on the issue of connection, on an indemnity basis forthwith.