Ahern & Anor v Aon Risk Services Australia Limited (No. 2) [2020] NSWDC 236

The Court refused to vary the costs order to grant the defendant indemnity costs, as the rejected offers were 'walk-away' offers with no real element of compromise and the plaintiffs' grounds of appeal were not frivolous or vexatious; sufficient information was not provided to confidently fix a gross sum for costs, so the lump sum application was also refused.

Parties: First Plaintiff: Mr M Ahern; Second Plaintiff: Ms E T Clancy; Defendant: Aon Risk Services Australia Limited
Jurisdiction: Australia
Judgment Date: 26 May 2020
Procedural Posture: Civil Appeal / Post Judgment Costs Application
Outcome: application refused in part, costs order varied
Legal Topics: Costs, Indemnity Costs, Fixed Sum Order, Offers of Compromise

Civil Procedure Costs Indemnity Costs Fixed Sum Order Offers of Compromise

Case Brief

Summary, issues, holding and outcome

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 21 Party arguments 2

Parties

Mr M Ahern

First Plaintiff

Ms E T Clancy

Second Plaintiff

Aon Risk Services Australia Limited

Defendant

Procedural Posture

Civil Appeal / Post Judgment Costs Application

Legal Issues

1 Whether an order for indemnity costs should be made following rejection of 'walk away' offers of compromise
2 Whether the Court should exercise its discretion to order a fixed sum for costs instead of assessed costs

Ratio Decidendi

Court Disposition

application refused in part, costs order varied

Orders

Defendant's application to vary the costs order made on 1 May 2020 is refused.
The general costs order is varied to clarify that the defendant should pay the plaintiffs' costs of this application to vary the order for costs.