Gazcorp Pty Ltd v Woolworths Group Ltd (No 2) [2021] NSWSC 559

Gazcorp Pty Ltd v Woolworths Group Ltd (No 2) [2021] NSWSC 559

Gazcorp is entitled to ordinary costs up to 15 January 2021 and indemnity costs thereafter due to its offer of compromise under UCPR r 20.26 not being accepted and it obtaining a judgment no less favourable than the offer. The cross-defendants are entitled to ordinary costs of the cross-claim because the cross-claim was discontinued and would have failed; indemnity costs are not justified as judgment in their favour was not obtained on the cross-claim. The timing of abandoning parts of Gazcorp's claim did not affect costs when viewed in light of the overriding purpose and did not unfairly prejudice Woolworths.

Jurisdiction
Australia
Judgment Date
18 May 2021
Procedural Posture
Costs Application in Equity Proceedings / Post Judgment Determination of Costs Following Judgment and Discontinuance of Cross Claim
Outcome
Costs awarded to plaintiff and cross-defendants as specified, with indemnity costs awarded for main proceedings after offer date. Cross-claim costs awarded on ordinary basis.
Legal Topics
['costs' 'offers of Compromise' 'discontinuance' 'indemnity Costs']
['civil Procedure' 'equity'] ['costs' 'offers of Compromise' 'discontinuance' 'indemnity Costs']

Case Brief

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Procedural Posture

Costs Application in Equity Proceedings / Post Judgment Determination of Costs Following Judgment and Discontinuance of Cross Claim

Legal Issues

  1. 1 ['Whether plaintiff is entitled to indemnity costs after offer of compromise was not accepted by defendant' 'Whether cross-defendants are entitled to indemnity costs following discontinuance of cross-claim and rejected offer of compromise' 'Whether conduct of abandonment of claims justifies any variation from usual costs orders']

Ratio Decidendi

Gazcorp is entitled to ordinary costs up to 15 January 2021 and indemnity costs thereafter due to its offer of compromise under UCPR r 20.26 not being accepted and it obtaining a judgment no less favourable than the offer. The cross-defendants are entitled to ordinary costs of the cross-claim because the cross-claim was discontinued and would have failed; indemnity costs are not justified as judgment in their favour was not obtained on the cross-claim. The timing of abandoning parts of Gazcorp's claim did not affect costs when viewed in light of the overriding purpose and did not unfairly prejudice Woolworths.

Court Disposition

Costs awarded to plaintiff and cross-defendants as specified, with indemnity costs awarded for main proceedings after offer date. Cross-claim costs awarded on ordinary basis.

Orders

  • ["The defendant pay the plaintiff's costs of the proceedings on the plaintiff's claim on the ordinary basis up to and including 15 January 2021 and on the indemnity basis thereafter." "The cross-claimant pay the cross-defendants' costs of the proceedings on the Cross-Claim on the ordinary basis." 'The...