LGS v Barbagallo [2013] NSWSC 68

LGS v Barbagallo [2013] NSWSC 68

The plaintiffs, properly advised, should have known their case was hopeless due to the failure to identify and prove confidential information, justifying indemnity costs. Payment out of security was warranted as the costs recoverable exceeded the sum held, and third party costs were only appropriate during the period when the plaintiffs were deregistered.

Jurisdiction
Australia
Judgment Date
13 February 2013
Procedural Posture
Costs Application in Commercial Litigation / Post Judgment Costs Determination
Outcome
Special costs orders made
Legal Topics
['indemnity Costs' 'abuse of Process' 'fixed Costs' 'third Party Costs' 'security for Costs' 'applications for Payment Out of Court']
['costs' 'civil Procedure' 'equity'] ['indemnity Costs' 'abuse of Process' 'fixed Costs' 'third Party Costs' 'security for Costs' 'applications for Payment Out of Court']

Case Brief

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Procedural Posture

Costs Application in Commercial Litigation / Post Judgment Costs Determination

Legal Issues

  1. 1 ['Whether indemnity costs should be ordered against the plaintiffs' 'Whether the proceedings were an abuse of process' 'Whether costs should be fixed in a gross sum' 'Entitlement to payment out of security for costs' 'Whether third party costs orders should be made against non-parties']

Ratio Decidendi

The plaintiffs, properly advised, should have known their case was hopeless due to the failure to identify and prove confidential information, justifying indemnity costs. Payment out of security was warranted as the costs recoverable exceeded the sum held, and third party costs were only appropriate during the period when the plaintiffs were deregistered.

Court Disposition

Special costs orders made

Orders

  • ['Costs payable by the plaintiffs to the defendants to be assessed on the indemnity basis.' "Moneys paid into court by the plaintiffs as security for the defendants' costs, together with all interest, to be paid out to the defendants forthwith (subject to stay of 21 days)." "LGS Enterprises Pty Ltd and Lisa Gaye...