Principals of a law firm cannot avoid wasted costs orders by delegating conduct of proceedings to an employed solicitor, even where the principals had no personal involvement in the specific defaults. Where principals are aware of an employed solicitor's unreliability and fail to take control of the situation, they are personally liable for the wasted costs caused by the employee's delinquency. The duty under s 56 of the Civil Procedure Act 2005 (NSW) extends to requiring solicitors to settle costs disputes where the outcome is probable, and to disclose indemnities that may facilitate resolution. Barrett J's observation that employed solicitors should not be the solicitor on the record provides practical guidance for law firm management.
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