Realm Resources Ltd v Aurora Place Investments Pty Ltd (No 2) [2020] NSWSC 153

Realm Resources Ltd v Aurora Place Investments Pty Ltd (No 2) [2020] NSWSC 153

UCPR r 42.15A was engaged because the defendant's offer complied with UCPR r 20.26 and the defendant obtained judgment on the plaintiff's claim no less favourable than Offer 1. The offers involved a real and genuine element of compromise because, when made, the proceedings had been on foot for more than nine months, had been set down for hearing, the defendant had incurred almost $230,000 in costs, and acceptance would have required the defendant to forego the possibility of a substantial costs order. The claims then in issue were clear enough for the parties to assess their prospects, and the plaintiff's concerns about later debt or damages claims did not justify departing from the prima...

Jurisdiction
Australia
Judgment Date
27 February 2020
Procedural Posture
Costs / Notice of Motion Determined on the Papers Seeking Variation of Costs Order Made on 8 April 2019 as Corrected on 24 May 2019
Outcome
Costs order varied in favour of the defendant to include indemnity costs for the period from 4 October 2018 to 8 April 2019, and the plaintiff ordered to pay the defendant's costs of the Notice of Motion.
Legal Topics
['offers of Compromise' 'indemnity Costs' 'genuine Element of Compromise' 'uniform Civil Procedure Rules 2005 (nsw), R 42.15 A']
['costs' 'civil Procedure'] ['offers of Compromise' 'indemnity Costs' 'genuine Element of Compromise' 'uniform Civil Procedure Rules 2005 (nsw), R 42.15 A']

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Procedural Posture

Costs / Notice of Motion Determined on the Papers Seeking Variation of Costs Order Made on 8 April 2019 as Corrected on 24 May 2019

Legal Issues

  1. 1 ["Whether the defendant obtained judgment on the plaintiff's claim no less favourable than the terms of its Offer of Compromise so as to engage UCPR r 42.15A." 'Whether the Court should order otherwise than indemnity costs because the offers allegedly lacked a real and genuine element of compromise.' 'Whether the costs order should be varied to award indemnity costs from 4 October 2018 to 8 April 2019.']

Ratio Decidendi

UCPR r 42.15A was engaged because the defendant's offer complied with UCPR r 20.26 and the defendant obtained judgment on the plaintiff's claim no less favourable than Offer 1. The offers involved a real and genuine element of compromise because, when made, the proceedings had been on foot for more than nine months, had been set down for hearing, the defendant had incurred almost $230,000 in costs, and acceptance would have required the defendant to forego the possibility of a substantial costs order. The claims then in issue were clear enough for the parties to assess their prospects, and the plaintiff's concerns about later debt or damages claims did not justify departing from the prima...

Court Disposition

Costs order varied in favour of the defendant to include indemnity costs for the period from 4 October 2018 to 8 April 2019, and the plaintiff ordered to pay the defendant's costs of the Notice of Motion.

Orders

  • ["Order that the plaintiff pay the defendant's costs of the proceedings up to and including 3 October 2018 on the ordinary basis." "Order that the plaintiff pay the defendant's costs of the proceedings from 4 October 2018 to 8 April 2019 on an indemnity basis." "Order that the plaintiff pay the defendant's costs of...