Vero Insurance Ltd v Kennedy [2006] NSWLC 34

Local Court of New South Wales

CITATION: Vero Insurance Ltd v Kennedy [2006] NSWLC 34 JURISDICTION: Civil PARTIES: Vero Insurance Ltd Michelle Louise Kennedy FILE NUMBER: 2212/05 PLACE OF HEARING: Downing Centre Local Court DATE OF DECISION: 07/20/2006 MAGISTRATE: Magistrate H Dillon CATCHWORDS: Costs - Departure from general rule - Indemnity costs - Liability of unsuccessful party under the Legal Aid Commission Act for costs - Whether plaintiff entitled to indemnity costs by virtue of its contract with defendant - Whether plaintiff must elect to rely on contractual term or Rules for costs oder - Whether contractual obligation to indemnify plaintiff a matter to be taken into account by court in considering application for indemnity costs - Whether costs are a species of damage LEGISLATION CITED: Legal aid Commission Act 1979 ss42, 47(1) and 47(8) CASES CITED: Abigroup Ltd v Sandtara Pty Ltd [2002] NSWCA 45 Maher v Network Finance Ltd (1986) 4 NSWLR 694 Mr A Casseldon - Counsel REPRESENTATION: Gadens Lawyers - Solicitors Ms M Fraser - Counsel Kydon Segal Lawyers ORDERS: The defendant to pay the plaintiff's costs of the proceedings in a sum agreed or assessed on an indenity basis.

JUDGMENT

1. On 10 April 2006 this matter concluded with a verdict and judgment being entered for the plaintiff.

2. The agreement between the parties included a term that the defendant "unconditionally and irrevocably indemnifies" the plaintiff "against all actions, claims, demands, liabilities, losses, damages, costs and expenses of whatever nature including legal costs on a full indemnity basis which [the plaintiff] may suffer, incur or sustain…" Pursuant to that terms of its contract with the defendant, the plaintiff sought costs on an indemnity basis.