› Whether indemnity costs should include GST where receiving party entitled to input tax credit
› Indemnity principle
Quick Take
1Where a plaintiff abandons proceedings without explanation on the first day of trial after prolonged and aggressive litigation including allegations of dishonesty, the court may infer the case had no reasonable prospect of success and award indemnity costs; the unexplained surrender, combined with the litigation history, constitutes the special or unusual feature justifying departure from standard costs.
2A non-party who is the driving force behind impecunious corporate plaintiffs, who finances and directs the litigation, and who stands to benefit personally from success, may be ordered to pay the defendants' costs; a prior order for security for costs does not preclude a non-party costs order, and the security application itself constitutes sufficient notice of the risk.
3Where defendants are registered for GST and entitled to input tax credits, indemnity costs assessed by experts excluding GST should not have a further 10% added for notional GST, as the GST component is not an out-of-pocket expense to the receiving party.
Case Details
Citation[2009] QSC 84
CourtQSC
JurisdictionQueensland
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