In Victoria, indemnity costs for proceedings instituted without merit may be ordered on the basis of what the party ought to have known, including inquiries it ought to have made and legal advice it ought to have obtained — it is not necessary to establish actual wilful disregard of known facts and clearly established law. Walk-away offers of compromise may constitute genuine compromises, particularly where substantial costs have already been incurred and there is an imbalance in the relative positions of the parties.
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