Hong v Gui [2022] NSWSC 598

Hong v Gui [2022] NSWSC 598

Ms Hong obtained a result substantially worse than Mr Gui's 19 March 2021 Calderbank offer, that offer was a genuine and very favourable compromise, and it was unreasonable for her to reject it because the relevant legal issues could then have been analysed from matters known to her. The matters relied on by Ms Hong did not make refusal reasonable, as the propositions concerning termination and repudiation were essential to her own case and the findings against Mr Gui were not necessary to his success. Indemnity costs were therefore warranted from 19 March 2021.

Jurisdiction
Australia
Judgment Date
16 May 2022
Procedural Posture
Costs Application in Equity Real Property List Proceedings / Post Judgment Determination of Costs on the Papers
Outcome
Mr Gui's application for indemnity costs from 19 March 2021 was granted.
Legal Topics
['party/party Costs' 'indemnity Costs' 'calderbank Offers' 'offers of Compromise' 'unreasonable Refusal of Settlement Offer']
['costs' 'equity' 'real Property'] ['party/party Costs' 'indemnity Costs' 'calderbank Offers' 'offers of Compromise' 'unreasonable Refusal of Settlement Offer']

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Procedural Posture

Costs Application in Equity Real Property List Proceedings / Post Judgment Determination of Costs on the Papers

Legal Issues

  1. 1 ["Whether Ms Hong should pay Mr Gui's costs on the ordinary basis up to a specified date and on an indemnity basis thereafter." "Whether Mr Gui's Calderbank offers were genuine offers of compromise." "Whether it was unreasonable for Ms Hong not to accept Mr Gui's Calderbank offer dated 19 March 2021."]

Ratio Decidendi

Ms Hong obtained a result substantially worse than Mr Gui's 19 March 2021 Calderbank offer, that offer was a genuine and very favourable compromise, and it was unreasonable for her to reject it because the relevant legal issues could then have been analysed from matters known to her. The matters relied on by Ms Hong did not make refusal reasonable, as the propositions concerning termination and repudiation were essential to her own case and the findings against Mr Gui were not necessary to his success. Indemnity costs were therefore warranted from 19 March 2021.

Court Disposition

Mr Gui's application for indemnity costs from 19 March 2021 was granted.

Orders

  • ["Ms Hong pay Mr Gui's costs of the proceedings, as agreed or as assessed, on the ordinary basis up to and including 19 March 2021 and thereafter on an indemnity basis."]