In the Matter of Australian Company Number 007 764 249 (In Liquidation) Smith, Anthony Stevens v 600 Machinery Australia Pty Ltd [1996] FCA 1029

In the Matter of Australian Company Number 007 764 249 (In Liquidation) Smith, Anthony Stevens v 600 Machinery Australia Pty Ltd [1996] FCA 1029

An offer of compromise by an applicant specifying an amount for costs, once accepted, is considered to be inclusive of the costs of the proceeding under Order 23 r4(1) and r11, and the applicant is not entitled to tax costs for work done after the offer, unless the court otherwise orders.

Parties
Applicant: Anthony Stevens Smith; Respondent: 600 Machinery Australia Pty Ltd (ACN 000 161 106)
Jurisdiction
Australia
Judgment Date
19 November 1996
Procedural Posture
Application Under the Corporations Law / Costs Decision Following Acceptance of Offer of Compromise
Outcome
Application dismissed
Legal Topics
Offer of Compromise, Costs – Taxation of Costs, Liquidation – Unfair Preference Recoveries
Civil Procedure Corporations Law Costs Offer of Compromise Costs – Taxation of Costs Liquidation – Unfair Preference Recoveries

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Parties

Anthony Stevens Smith

Applicant

600 Machinery Australia Pty Ltd (ACN 000 161 106)

Respondent

Procedural Posture

Application Under the Corporations Law / Costs Decision Following Acceptance of Offer of Compromise

Legal Issues

  1. 1 Whether an applicant may tax costs for work done after an offer of compromise where the offer included a specific sum for costs and was accepted before trial
  2. 2 Proper construction and effect of Order 23 r4 and r11 of the Federal Court Rules

Ratio Decidendi

An offer of compromise by an applicant specifying an amount for costs, once accepted, is considered to be inclusive of the costs of the proceeding under Order 23 r4(1) and r11, and the applicant is not entitled to tax costs for work done after the offer, unless the court otherwise orders.

Court Disposition

Application dismissed

Orders

  • The applicant is not entitled to tax its costs under r11(1) beyond the specified $3,000 included in the accepted offer.