NSW Government Bulletin – 5 April 2017

On 20 March 2017, the NSW Supreme Court handed down a decision as to costs in Edward Moses Obeid Snr v David Andrew Ipp [2017] NSWSC 271 concluding the most recent instalment in the Obeid saga. In his judgment, Hammerschlag J considered the context in which an order for indemnity costs is to be made. He held that in order to overcome the general rule that costs are to follow the event, a party must demonstrate that there has been unreasonable, inappropriate or otherwise unjustifiable behaviour of significance in connection with the conduct of a party to the proceedings.

Due to the nature of the allegations, namely that Mr Ipp acted maliciously, with an intent to cause irreparable damage and contrary to his ethical duties, and the fact that the allegations were "abandoned without explanation" and "entirely lacking in merit", his Honour held that this threshold was clearly met: