What must the court find to award indemnity costs according to special circumstances?

Study for the New South Wales Civil Practice and Procedure Test. Engage with multiple choice questions, comprehensive explanations, and helpful insights. Ace your exam with confidence!

To award indemnity costs based on special circumstances, the court must find the existence of relevant delinquency. This means that there must be some form of significant misconduct or failure to comply with court procedures by one of the parties involved in the case. Indemnity costs are generally awarded in situations where it's deemed that the behavior of a party was so egregious that it affected the fairness or efficiency of the proceedings.

The rationale behind this is that indemnity costs aim to ensure that the innocent party is compensated for the additional and unreasonable expenses incurred due to the other party's wrongful or inappropriate actions. Relevant delinquency can manifest in various ways, including failing to adhere to court orders, making frivolous claims, or engaging in conduct that unnecessarily complicates or prolongs the litigation process.

In contrast, the other options do not capture the essential legal principles behind the awarding of indemnity costs. Good faith, while important in legal dealings, does not directly relate to the concept of special circumstances required for indemnity costs. Evidence of premeditated claims pertains to ulterior motives behind claims but doesn’t establish the misconduct necessary for indemnity costs. A lack of legal representation may affect a party's position but does not inherently constitute the type of delinquency required to

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