Abstract
The recovery of party-party costs - that is, the recovery of costs incurred by a party in legal proceedings from another party in the proceedings - is governed in Australia by the indemnity principle. This principle states that a client must have an obligation to pay costs to a legal practitioner before those costs can be recovered from the other party in litigation. It might seem, then, that an order for party-party costs would be unproductive if made in favour of a party who is represented by lawyers acting pro bono, since they are not obliged to pay those lawyers' fees.
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