Zepinic v Chateau Constructions (Aust) Ltd (No 2)

In *Zepinic v Chateau Constructions (Aust) Ltd (No 2)*, the New South Wales Court of Appeal considered an application by Chateau Constructions (Aust) Ltd for indemnity costs, gross sum costs, and interest on costs, arising from earlier proceedings. Dr Zepinic was the respondent to Chateau Constructions' applications.

The primary legal issue before the Court of Appeal was whether Chateau Constructions was entitled to an order for indemnity costs, a gross sum order for costs, and interest on those costs, given that the costs incurred appeared disproportionately large. The Court also had to determine the appropriate orders regarding the costs of the motion before it.

The Court of Appeal reasoned that the costs incurred by Chateau Constructions were indeed disproportionately large. It applied principles relating to the award of indemnity costs and interest on costs, noting conflicting authorities on the latter. Ultimately, the Court decided to set aside an earlier order made on 18 February 2014.

The Court ordered that Dr Zepinic pay Chateau Constructions' costs of specific motions dated 9 July 2013 and 6 August 2013 in the sum of $13,200. All other aspects of Chateau Constructions' notice of motion dated 3 March 2014 were dismissed.