Eric Preston Pty Ltd v Euroz Securities Limited (No 2) [2010] FCA 1068

Eric Preston Pty Ltd v Euroz Securities Limited (No 2) [2010] FCA 1068

Euroz's offer to settle, though a reasonable commercial compromise, did not sufficiently account for the potential damages to which Eric Preston may have been entitled. In the circumstances, Eric Preston's refusal of the offer was not unreasonable, nor was the prosecution of the claim so devoid of factual foundation as to justify indemnity costs. Accordingly, only party and party costs should be awarded.

Parties
Applicant, Cross Respondent: Eric Preston Pty Ltd (ACN 008 753 348); Respondent, Cross Claimant: Euroz Securities Limited (ACN 089 314 983)
Jurisdiction
Australia
Judgment Date
30 September 2010
Procedural Posture
Costs Application (post Trial) / Judgment on Costs
Outcome
Costs judgment for respondent; only party and party costs awarded.
Legal Topics
Costs, Offer of Compromise, Calderbank Offer, Indemnity Costs, Party and Party Costs, Reasonableness of Refusal
Civil Procedure Costs Offer of Compromise Calderbank Offer Indemnity Costs Party and Party Costs Reasonableness of Refusal

Case Brief

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Parties

Eric Preston Pty Ltd (ACN 008 753 348)

Applicant, Cross Respondent

Euroz Securities Limited (ACN 089 314 983)

Respondent, Cross Claimant

Procedural Posture

Costs Application (post Trial) / Judgment on Costs

Legal Issues

  1. 1 Whether the applicant unreasonably refused a settlement (Calderbank) offer, justifying indemnity costs; Whether the circumstances of the claim justified only party and party costs.

Ratio Decidendi

Euroz's offer to settle, though a reasonable commercial compromise, did not sufficiently account for the potential damages to which Eric Preston may have been entitled. In the circumstances, Eric Preston's refusal of the offer was not unreasonable, nor was the prosecution of the claim so devoid of factual foundation as to justify indemnity costs. Accordingly, only party and party costs should be awarded.

Court Disposition

Costs judgment for respondent; only party and party costs awarded.

Orders

  • The applicant is to pay the respondent's costs of the application.