Coshott v Woollahra Municipal Council

[2008] NSWCA 176

NSW Court of Appeal

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Interrogate

Catchwords

1. Costs
2. › Indemnity principle
3. › Third party indemnity
4. › Mutual indemnity scheme
5. › Whether party entitled to recover assessed costs where third party paid portion of solicitor's costs
6. › Subrogation
7. › Equitable subrogation not dependent on contractual entitlement
1. Res Judicata
2. › Final orders for costs
3. › Whether costs orders of Federal Court open to collateral challenge in other proceedings
4. › Declaration of right to recover costs already paid under final orders
1. Practice and Procedure
2. › Appeals
3. › Appeal from costs assessment
4. › Appeal limited to questions of law
5. › Legal Profession Act 1987 (NSW), ss 208L, 208M

Quick Take

A litigant whose legal costs have been partially paid by a mutual indemnity scheme (not constituting insurance) may recover the full assessed costs from the opposing party, because the indemnifier has equitable subrogation rights to the recovery. The indemnity principle is not breached in such circumstances. Final orders for costs in one court cannot be collaterally challenged by seeking a declaration in another court.