Indemnity costs and the courts discretion in Victoria – Leo Cussen Centre for Law

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Indemnity costs and the courts discretion in Victoria

Indemnity costs and the courts discretion in Victoria

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Recent high-profile cases have brought the Court’s power of awarding ‘indemnity costs’ back into the minds of practitioners. Victorian Courts can award costs, which usually require an unsuccessful party to pay the legal costs in favour of the successful party. This is usually ordered to be assessed on the ‘standard basis’, under the applicable Rules. However, costs orders may also be made on an ‘indemnity basis’, under the applicable Rules.

Recent cases indicate the principles which govern the exercise of the discretionary power to make costs orders, and more particularly the basis on which costs are to be assessed, continue to evolve. Practitioners must be aware of their duties and obligations surrounding costs, applications and what they can do to maximise their chance of being awarded a cost order.

This session will discuss key issues, including: 

  • The purpose of ordering costs.
  • The current costs regime, including the new Supreme Court (Chapter I Costs Amendment) Rule 2024.
  • Differences between the ‘standard basis’ and the ‘indemnity basis’.
  • Comparison: Calderbank offers and offers of compromise.
  • General discretionary principles.