Leighton Contractors Pty Ltd v Smith [No.3] Costs [2000] NSWCA 250

Leighton Contractors Pty Ltd v Smith [No.3] Costs [2000] NSWCA 250

AMP, acting as insurer for B&B, conducted the defence and appeal in B&B’s name without authority, knowing Leighton's indemnity and costs judgments would be worthless. This conduct caused unnecessary costs, justifying indemnity costs orders against AMP for all costs incurred by Leighton in its cross-claim against B&B, and all costs incurred by Leighton and Smith respectively in the proceedings in this Court.

Jurisdiction
Australia
Judgment Date
06 September 2000
Procedural Posture
Appeal / Costs Determination Following Appeal Decision
Outcome
AMP ordered to pay Leighton and Smith, on an indemnity basis, all costs incurred by Leighton in respect of its cross-claim against B&B, and all costs incurred by Leighton and Smith respectively in the proceedings in this Court, in addition to orders made on 19 April 2000.
Legal Topics
['costs' 'appeals' 'indemnity Costs' 'insurer Conduct']
['civil Procedure'] ['costs' 'appeals' 'indemnity Costs' 'insurer Conduct']

Case Brief

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Procedural Posture

Appeal / Costs Determination Following Appeal Decision

Legal Issues

  1. 1 ['Whether costs should be awarded on an indemnity basis against a non-party insurer who conducted the defence in the name of a deregistered company without authority' "Whether costs orders should extend to indemnity for costs incurred by Leighton in respect of its cross-claim against B&B and all parties' costs in the appeal"]

Ratio Decidendi

AMP, acting as insurer for B&B, conducted the defence and appeal in B&B’s name without authority, knowing Leighton's indemnity and costs judgments would be worthless. This conduct caused unnecessary costs, justifying indemnity costs orders against AMP for all costs incurred by Leighton in its cross-claim against B&B, and all costs incurred by Leighton and Smith respectively in the proceedings in this Court.

Court Disposition

AMP ordered to pay Leighton and Smith, on an indemnity basis, all costs incurred by Leighton in respect of its cross-claim against B&B, and all costs incurred by Leighton and Smith respectively in the proceedings in this Court, in addition to orders made on 19 April 2000.

Orders

  • ['AMP to pay Leighton, on an indemnity basis, all costs incurred by Leighton in respect of its cross-claim against B&B.' 'AMP to pay Leighton and Smith, on an indemnity basis, all costs incurred by them respectively in the proceedings in this Court.']