Costs — legal aid — liability of legally aided party — immunity against costs — requirement to give notice to other parties if legally aided — whether exceptional circumstances exist — financial position of party — District Courts Act 1947, s 62 — Legal Services Act 2011, ss 24 & 45 — Legal Services Act 2000, s 40 — Laverty v Para Franchising Ltd [2006] 1 NZLR 650. The court was asked to award costs against the defendant in circumstances where judgment had been entered for the plaintiff but where the award of costs were complicated by the defendant having received a grant of legal aid during the course of proceedings. The court was asked to determine the defendant's liability as to costs and to award costs. The defendant acquired a legal aid grant during the second day of the second hearing in respect of the matter; the first hearing had been discontinued. The court found that the defendant could only be entitled to costs following the granting of legal aid, and that the defendant would be liable to pay costs for the first hearing on a 2B basis (excluding the cost of attendances at the first trial). The court found that to interpret s 45 of the Legal Services Act to apply retrospectively would have an unjust effect and would cause harm to the non-aided party. The court then turned to consider whether costs could be awarded against the defendant following the grant of legal aid. The court considered that exceptional circumstances did exist to override the immunity generally afforded to parties who were legally aided as the defendant had been generally non-compliant with court timetable orders which had incurred significant costs; the defendant had repeatedly changed his defence during the course of proceedings. The court further noted that the defendant had refused to pay the plaintiff amounts that the defendant had agreed that he owed. Costs were awarded against the defendant during the time at which he was not legally aided to the sum of $40,003; and following the receipt of legal aid to the sum of $5,340. Disbursements in the sum of $2,000 were also awarded. Judgment Date: 1 September 2017.