The reasonableness of an unsuccessful party's conduct in defending proceedings is irrelevant to the costs discretion where the proceedings have been determined and there is a clear 'event' — costs follow the event. The principle from Lai Qin that reasonableness of conduct is relevant to costs applies only where proceedings have been compromised and there is no 'event'. In multiparty litigation, a Sanderson order shifting costs to a third party requires the applicant to show conduct by the unsuccessful defendant that would make it fair to impose liability; a successful party should not be left to bear the solvency risk of a fraudster joined by the unsuccessful party.
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