1Where a party issues statutory demands and subsequently gives an undertaking to the court in related proceedings that effectively undermines the basis for those demands, the failure to promptly withdraw the demands constitutes unreasonable conduct justifying an indemnity costs order for the period the demands are maintained after the undertaking.
2A third-party costs order against a sole director and shareholder of shell companies incorporated shortly before issuing statutory demands is appropriate where the director controlled the litigation, funded it, had a personal interest in the outcome, and the companies have no assets from which costs could be recovered.
3In fixing gross sum costs, the court applies a discount of approximately 10% to solicitors' fees for indemnity costs and approximately 30% for ordinary costs, with a further overall discount of approximately 10% to reflect the loss of the paying party's opportunity to do better on formal assessment.
Case Details
Citation[2025] NSWSC 1457
CourtNSWSC
JurisdictionNew South Wales
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