The Ex parte Lai Qin principles governing costs where proceedings are not determined on the merits do not apply, or are displaced, where a party has engaged in improper conduct such as swearing false or contradictory affidavits that affected the course of justice. In such circumstances, indemnity costs may be ordered as a sanction for the improper conduct. A non-party who gives an undertaking at the court's direction and is then subjected to unfounded allegations of dishonesty is entitled to appear by counsel and to recover costs from the party making those allegations.
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