Wollongong Coal Limited v PCL (Shipping) Pte Ltd (No 2) [2020] NSWSC 534

Wollongong Coal Limited v PCL (Shipping) Pte Ltd (No 2) [2020] NSWSC 534

PCL was liable for WCL's costs because WCL succeeded on the Bills of Lading Claim. WCL had achieved a better result than its Calderbank offer, and the offer alerted PCL to the difficulty concerning surrender and cancellation of the August Bills and issue of the Switch Bills, which was the substance of the basis on which WCL succeeded; PCL did not show that it was not unreasonable to reject the offer, so indemnity costs were warranted from 21 January 2020. A gross sum costs order was refused because the matter was not unusual or complex from a costs assessment perspective and the usual rule is that costs be assessed.

Jurisdiction
Australia
Judgment Date
11 May 2020
Procedural Posture
Costs in Equity Commercial Arbitration List Proceeding / Costs Judgment After Determination of Bills of Lading Claim
Outcome
PCL was ordered to pay WCL's costs of the specified Cross-Claim on a party-party basis from 5 July 2019 up to and including 21 January 2020 and thereafter on an indemnity basis, except for WCL's notice of motion of 12 February 2020 and WCL's application for a gross sum costs order. The gross sum costs order...
Legal Topics
['calderbank Offer' 'indemnity Costs' 'gross Sum Costs Order' 'costs Assessment' 'bills of Lading']
['costs' 'commercial Arbitration' 'maritime Law'] ['calderbank Offer' 'indemnity Costs' 'gross Sum Costs Order' 'costs Assessment' 'bills of Lading']

Case Brief

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Procedural Posture

Costs in Equity Commercial Arbitration List Proceeding / Costs Judgment After Determination of Bills of Lading Claim

Legal Issues

  1. 1 ["Whether PCL should pay WCL's costs on an indemnity basis from 21 January 2020 because WCL obtained a better result than its Calderbank offer and it was unreasonable for PCL not to accept it." 'Whether WCL should receive a gross sum costs order under s 98(4) of the Civil Procedure Act 2005 (NSW).' "Whether either party should receive costs of WCL's unsuccessful notice of motion of 12 February 2020 or of WCL's application for a gross sum costs order."]

Ratio Decidendi

PCL was liable for WCL's costs because WCL succeeded on the Bills of Lading Claim. WCL had achieved a better result than its Calderbank offer, and the offer alerted PCL to the difficulty concerning surrender and cancellation of the August Bills and issue of the Switch Bills, which was the substance of the basis on which WCL succeeded; PCL did not show that it was not unreasonable to reject the offer, so indemnity costs were warranted from 21 January 2020. A gross sum costs order was refused because the matter was not unusual or complex from a costs assessment perspective and the usual rule is that costs be assessed.

Court Disposition

PCL was ordered to pay WCL's costs of the specified Cross-Claim on a party-party basis from 5 July 2019 up to and including 21 January 2020 and thereafter on an indemnity basis, except for WCL's notice of motion of 12 February 2020 and WCL's application for a gross sum costs order. The gross sum costs order...

Orders

  • ["The defendant/cross-claimant pay the plaintiff/cross-defendant's costs of the Cross-Claim in relation to paragraphs 6 to 27 of the Amended Commercial Arbitration List Cross Claim Statement on a party-party basis from 5 July 2019 up to and including 21 January 2020 and thereafter on an indemnity basis, other than...