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Question 1 (10 marks) Suppose Jerry Louis commences proceedings in the County Court against Australian Finance and Escrow Services Pty Ltd ('AFES') to recover his

Question 1 (10 marks) Suppose Jerry Louis commences proceedings in the County Court against Australian Finance and Escrow Services Pty Ltd ('AFES') to recover his loss and claim a significant amount as compensation. AFES is defending as it is not prepared to pay the total amount that Jerry is claiming but is aware that as Jerry has commenced proceedings in the County Court, it will usually have to pay Jerry's legal costs if Jerry is successful. Discuss strategies by which AFES may be able to avoid having to pay some, if not all, of Jerry's costs and/or obtain a costs order in its favour, in case there is no settlement and the proceedings go to a trial in the County Court.

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