Bagshaw v Scott [2005] FCA 104

Bagshaw v Scott [2005] FCA 104

Indemnity costs are warranted because the proceedings against the respondents were commenced and continued where the applicant should have known he had no chance of success. The applicant’s solicitor is jointly and severally liable for the difference between party and party costs and indemnity costs for certain respondents due to a serious dereliction of duty, in failing to make independent inquiries, and basing allegations solely on client's instructions without factual foundation.

Jurisdiction
Australia
Judgment Date
17 February 2005
Procedural Posture
Costs Application / Post Dismissal, Determination of Costs Liability
Outcome
costs orders varied; indemnity costs awarded; solicitor also liable for part of costs
Legal Topics
['indemnity Costs' 'costs Orders Against Solicitors' 'standing of Bankrupts' 'striking Out Pleadings' 'duty of Solicitor to Court']
['bankruptcy Law' 'civil Procedure' 'legal Practice and Professional Responsibility'] ['indemnity Costs' 'costs Orders Against Solicitors' 'standing of Bankrupts' 'striking Out Pleadings' 'duty of Solicitor to Court']

Case Brief

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Procedural Posture

Costs Application / Post Dismissal, Determination of Costs Liability

Legal Issues

  1. 1 ["Should the applicant pay respondents' costs on an indemnity basis?" 'Should applicant’s solicitor be jointly liable for costs?' 'Were proceedings commenced or continued with no chance of success?' 'Was there a serious dereliction of duty by the applicant’s solicitor?']

Ratio Decidendi

Indemnity costs are warranted because the proceedings against the respondents were commenced and continued where the applicant should have known he had no chance of success. The applicant’s solicitor is jointly and severally liable for the difference between party and party costs and indemnity costs for certain respondents due to a serious dereliction of duty, in failing to make independent inquiries, and basing allegations solely on client's instructions without factual foundation.

Court Disposition

costs orders varied; indemnity costs awarded; solicitor also liable for part of costs

Orders

  • ["Applicant to pay first respondent's costs on an indemnity basis." "Applicant to pay fifth respondent's costs on an indemnity basis." "Applicant to pay third, fourth and sixth respondents' costs on a party and party basis." 'Applicant and his solicitor, Mr Graham, are jointly and severally liable to pay the...