The Court held that where a caveator withdraws a caveat after proceedings are commenced but before the hearing, the caveator has capitulated and the applicant is entitled to costs on the standard basis following the event. The Court declined indemnity costs because the caveator acted promptly once served with the proceeding, and the applicant's solicitors had failed to conduct a basic title search to ascertain the caveat grounds, which weighed against a finding of unmeritorious conduct. A gross sum costs order was refused where insufficient material was provided to assess reasonableness and the high level of disputation between the parties made the Costs Court the more appropriate forum for taxation.
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