The Sanko Steamship Co Ltd & Anor v Sumitomo Australia Ltd [1996] FCA 22

The Sanko Steamship Co Ltd & Anor v Sumitomo Australia Ltd [1996] FCA 22

Indemnity costs were refused because the relevant settlement offers and the circumstances of this difficult, hard-fought litigation did not show plainly unreasonable conduct by the plaintiffs. At the relevant time the defendant's offer was for more than it would have recovered had judgment been entered then, and the case involved substantial uncertainty and complex factual and legal issues.

Jurisdiction
Australia
Judgment Date
07 February 1996
Procedural Posture
Application for Costs on the Indemnity Basis / Supplementary Reasons After Judgment
Outcome
The defendant's application for indemnity costs was rejected. The plaintiffs were ordered to pay the defendant's costs of the action on the party and party basis, and no order was made as to the costs of the indemnity costs application.
Legal Topics
['indemnity Costs' 'party and Party Costs' 'calderbank Letters' 'offers of Compromise' 'costs of Interlocutory Applications']
['practice and Procedure' 'costs'] ['indemnity Costs' 'party and Party Costs' 'calderbank Letters' 'offers of Compromise' 'costs of Interlocutory Applications']

Case Brief

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Procedural Posture

Application for Costs on the Indemnity Basis / Supplementary Reasons After Judgment

Legal Issues

  1. 1 ['Whether the successful defendant should have the bulk of its costs paid by the plaintiffs on the indemnity basis because of Calderbank letters.' "Whether the plaintiffs acted plainly unreasonably in refusing the defendant's settlement offers." "What order should be made for the costs of the defendant's application for indemnity costs."]

Ratio Decidendi

Indemnity costs were refused because the relevant settlement offers and the circumstances of this difficult, hard-fought litigation did not show plainly unreasonable conduct by the plaintiffs. At the relevant time the defendant's offer was for more than it would have recovered had judgment been entered then, and the case involved substantial uncertainty and complex factual and legal issues.

Court Disposition

The defendant's application for indemnity costs was rejected. The plaintiffs were ordered to pay the defendant's costs of the action on the party and party basis, and no order was made as to the costs of the indemnity costs application.

Orders

  • ["The plaintiffs pay the defendant's costs of the action on the party and party basis." 'No order as to the costs of the application made by the defendant for costs on the indemnity basis.']