where second applicant sent correspondence and filed documents on behalf of both applicants
where respondents filed applications for summary dismissal, evidence and written submissions
where each applicant advised of intention not to prosecute proceeding shortly before hearing of summary dismissal applications
Quick Take
1Where an applicant who is an undischarged bankrupt commences proceedings in respect of causes of action that have vested in the trustee in bankruptcy, and pursues claims with no reasonable basis (including claims under the National Credit Code against a corporate debtor to which the Code plainly does not apply), the commencement and continuation of such proceedings may be objectively characterised as unreasonable and vexatious, warranting indemnity costs.
2A party who authorises the commencement of proceedings in their name and permits another litigant to conduct those proceedings on their behalf, while adopting a position of wilful blindness as to the manner of conduct, may be held jointly and severally liable for costs on an indemnity basis, notwithstanding their lack of active personal participation.
3Persistent inappropriate correspondence with chambers, the making of unsupported factual assertions in lieu of filing evidence, demonstrably false statements, and repeated non-compliance with court orders are conduct factors that cumulatively support the award of indemnity costs and lump sum costs orders to avoid further protracted and costly processes.
