Stefanyszyn v Brown; Brown v Newcastle Private Hospital Pty Limited t/as Newcastle Private Hospital (No 2) [2016] NSWSC 898

Stefanyszyn v Brown; Brown v Newcastle Private Hospital Pty Limited t/as Newcastle Private Hospital (No 2) [2016] NSWSC 898

Although Dr Brown's offer involved a real compromise and the result achieved at trial was no less favourable than the offer, the Hospital did not act unreasonably in rejecting it because the offer would have bound the Hospital to contribute to any settlement reached with the plaintiffs, including one it did not consider reasonable. Accordingly, there was no just departure from the usual costs order.

Jurisdiction
Australia
Judgment Date
24 June 2016
Procedural Posture
Costs on Cross Claim in Supreme Court of New South Wales Common Law Proceedings / Determination of Costs Following Judgment
Outcome
Judgment for Dr Brown on the cross-claim; indemnity costs refused and usual costs order made.
Legal Topics
['indemnity Costs' 'calderbank Offer' 'genuine Compromise' 'reasonableness of Rejecting Settlement Offer' 'cross Claim Costs']

Case Brief

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Procedural Posture

Costs on Cross Claim in Supreme Court of New South Wales Common Law Proceedings / Determination of Costs Following Judgment

  1. 1 ["Whether Dr Brown's Calderbank offer involved a genuine compromise." "Whether the Hospital acted unreasonably in not accepting Dr Brown's Calderbank offer." 'Whether there should be a departure from the usual costs order by ordering indemnity costs from 4 April 2016.']

Ratio Decidendi

Although Dr Brown's offer involved a real compromise and the result achieved at trial was no less favourable than the offer, the Hospital did not act unreasonably in rejecting it because the offer would have bound the Hospital to contribute to any settlement reached with the plaintiffs, including one it did not consider reasonable. Accordingly, there was no just departure from the usual costs order.

Court Disposition

Judgment for Dr Brown on the cross-claim; indemnity costs refused and usual costs order made.

Orders

  • ['Judgment in favour of Dr Brown on the cross-claim in the sum of $322,000.' "The Hospital is to bear Dr Brown's costs of the cross-claim, as agreed or assessed."]