Shepparton Partners Collective Operations Pty Ltd v QAD Inc (No 2) [2021] FCAFC 227
Because SPC pursued an appeal in which it was not open to advance the only argument ultimately pressed and which had no chance of success, the appeal was sufficiently meritless and it was unreasonable for SPC to put QAD to the expense of defending it. The evidence did not show that QAD's claimed indemnity costs were unreasonably incurred, and the overall claimed amount of $99,473.55 was reasonable for the matter and issues at stake. A lump sum indemnity costs order was therefore appropriate.
- Jurisdiction
- Australia
- Judgment Date
- 17 December 2021
- Procedural Posture
- Appeal Costs Determination / Determined on the Papers After Dismissal of the Appeal
- Outcome
- The appellant was ordered to pay the respondents' costs of the appeal on an indemnity basis, fixed as a lump sum of $99,473.55 payable within 28 days.
- Legal Topics
- ['indemnity Costs' 'lump Sum Costs' 'costs Unreasonably Incurred' 'copyright Infringement Damages Appeal']
Case Brief
Summary, issues, holding and outcome
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Procedural Posture
Appeal Costs Determination / Determined on the Papers After Dismissal of the Appeal
Legal Issues
- 1 ['Whether the appeal was sufficiently meritless to justify indemnity costs' "Whether the respondents' claimed costs were unreasonably incurred" 'Whether costs should be awarded on a lump sum basis' 'What amount should be fixed as lump sum costs']
Ratio Decidendi
Because SPC pursued an appeal in which it was not open to advance the only argument ultimately pressed and which had no chance of success, the appeal was sufficiently meritless and it was unreasonable for SPC to put QAD to the expense of defending it. The evidence did not show that QAD's claimed indemnity costs were unreasonably incurred, and the overall claimed amount of $99,473.55 was reasonable for the matter and issues at stake. A lump sum indemnity costs order was therefore appropriate.
Court Disposition
The appellant was ordered to pay the respondents' costs of the appeal on an indemnity basis, fixed as a lump sum of $99,473.55 payable within 28 days.
Orders
- ["The appellant pay the respondents' costs of the appeal on an indemnity basis." 'The costs in order 1 be payable on a lump sum basis.' 'The lump sum costs be fixed in the sum of $99,473.55, payable within 28 days of these orders.']
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