North Sydney Leagues Club Ltd v Synergy Protection Agency Pty Ltd [2011] NSWSC 804

North Sydney Leagues Club Ltd v Synergy Protection Agency Pty Ltd [2011] NSWSC 804

Synergy was not entitled to indemnity costs, because in all the circumstances, including the complex and unusual history of the matter and the timing of offers, Norths's rejection of Synergy’s settlement offers was not shown to be unreasonable; therefore, costs were to be paid on the usual party/party basis. Interest on costs was appropriate to compensate Synergy for being out of pocket, and costs should follow the event except as regards clearly separable interlocutory proceedings.

Parties
Plaintiff/cross Defendant: North Sydney Leagues Club Limited; Defendant/cross Claimant: Synergy Protection Agency Pty Ltd (formerly Joseph Merhi Industries Pty Ltd) t/as Synergy Protection Agency
Jurisdiction
Australia
Judgment Date
22 July 2011
Procedural Posture
Civil Contract/costs / Post Judgment Costs Determination
Outcome
Judgment for cross-claimant with specified orders on quantum, interest, and costs.
Legal Topics
Costs, Indemnity Costs, Interest on Costs, Calderbank Offers, Damages

Case Brief

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Parties

North Sydney Leagues Club Limited

Plaintiff/cross Defendant

Synergy Protection Agency Pty Ltd (formerly Joseph Merhi Industries Pty Ltd) t/as Synergy Protection Agency

Defendant/cross Claimant

Procedural Posture

Civil Contract/costs / Post Judgment Costs Determination

  1. 1 Whether indemnity costs should be awarded following rejection of Calderbank offers
  2. 2 Whether interest on costs should be payable to the successful party
  3. 3 Whether the usual rule that costs follow the event should be modified in this case

Ratio Decidendi

Synergy was not entitled to indemnity costs, because in all the circumstances, including the complex and unusual history of the matter and the timing of offers, Norths's rejection of Synergy’s settlement offers was not shown to be unreasonable; therefore, costs were to be paid on the usual party/party basis. Interest on costs was appropriate to compensate Synergy for being out of pocket, and costs should follow the event except as regards clearly separable interlocutory proceedings.

Court Disposition

Judgment for cross-claimant with specified orders on quantum, interest, and costs.

Orders

  • Judgment for the cross-claimant on the cross-Summons in the sum of $334,547.51, together with interest up to and including 19 July 2011 in the sum of $141,564.99.
  • Plaintiff/cross defendant to pay defendant/cross claimant's costs of the proceedings on a party/party basis, as agreed or assessed, excluding costs of specified interlocutory matters.