Wellington, June 8 NZPA - An Auckland law firm that pursued a lawsuit against Westpac Bank has lost an appeal against costs of more than $1 million.

The issue appealed was whether the High Court was right to award indemnity costs to Westpac on the abandonment by Clive Bradbury and the firm Bradbury & Muir of their claim against it.

The High Court awarded $1,057,691, which was unusually high.

The Court of Appeal dismissed the appeal, saying the award of indemnity costs was justified on the grounds that the appellants' case was hopeless.

"By Pursuing it their misconduct was flagrant," the Court of Appeal ruling said.

It said the appellant had an improper motive and an intention to extract a financial windfall from the bank by abusing the process of the court.

The High Court judge had said that the five causes of action taken by the plaintiffs, which ranged from contractual breach to defamation, "were hopeless from inception in March 2006" and were "unarguable".