Lepionka & Co Investments Ltd v Naldapat Ltd

In Lepionka & Co Investments Ltd v Naldapat Ltd, Lepionka & Co Investments Limited sought costs from LW354 Ltd, Elizabeth O’Neil, Nadia Dapas, and Vaughan Peter Bowkett following the removal of two caveats. The court was required to determine whether indemnity costs were warranted under the High Court Rules and if so, in what amount, and whether costs should be awarded against the non-parties, O’Neil, Dapas, and Bowkett. The Lepionka mortgagee argued that LW354 Ltd acted vexatiously, improperly, and unnecessarily, and disobeyed an order of the court. It sought indemnity costs of $45,000 or, in the alternative, scale costs plus a 100% increase. The court found that the caveat was lodged to delay the sale of the property, and as such, the misuse of the caveat warranted indemnity costs. However, the court could not fix indemnity costs due to insufficient evidence provided by the Lepionka mortgagee. Instead, the court fixed the costs payable by LW354 Ltd at scale plus a 50% increase. As for the non-parties, the court found that O’Neil was in breach of an undertaking given to the court and should pay costs. Dapas was also in contempt of court for being involved in lodging the caveat, but the court did not find her conduct to be so extraordinary as to warrant a costs order. Bowkett was not found liable for costs as he had not involved himself in the removal proceeding to an extent that could expose him to liability for costs as a non-party. The court made orders for costs against LW354 Ltd and Elizabeth O’Neil for $21,308 plus disbursements of $1,608.77, payable jointly and severally. No orders were made for costs against Ms Dapas or Mr Bowkett.