Belflora Pty Ltd v Vinflora Pty Ltd and Anor [2020] NSWSC 1374

Belflora Pty Ltd v Vinflora Pty Ltd and Anor [2020] NSWSC 1374

Indemnity costs are not warranted as neither of the defendants’ offers constituted a sufficient basis for such an order—due to lack of adequate reasons and context for compromising. Although the plaintiff succeeded on some issues and failed overall, their conduct did not reach the threshold of unreasonable or delinquent behaviour required for indemnity costs. The appropriate order is that plaintiff pay 80% of defendants’ costs on an ordinary basis due to ultimate failure on relief sought and considering the proportionate success on certain legal points.

Jurisdiction
Australia
Judgment Date
09 October 2020
Procedural Posture
Civil (costs Determination Following Judgment) / Post Judgment (costs Order)
Outcome
Plaintiff to pay 80% of the defendants’ costs on an ordinary basis.
Legal Topics
['costs' 'indemnity Costs' 'calderbank Offers' 'party/party Basis' 'restraint of Trade' 'contract Repudiation']
['equity' 'civil Procedure'] ['costs' 'indemnity Costs' 'calderbank Offers' 'party/party Basis' 'restraint of Trade' 'contract Repudiation']

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Procedural Posture

Civil (costs Determination Following Judgment) / Post Judgment (costs Order)

Legal Issues

  1. 1 ['Whether indemnity costs should be ordered against the plaintiff' 'Whether plaintiff acted unreasonably or engaged in relevant delinquency' "Whether rejection of defendants' settlement offers was unreasonable under the Calderbank principles or UCPR 42.15A" 'Whether ordinary or indemnity costs should be awarded based on the success on particular issues']

Ratio Decidendi

Indemnity costs are not warranted as neither of the defendants’ offers constituted a sufficient basis for such an order—due to lack of adequate reasons and context for compromising. Although the plaintiff succeeded on some issues and failed overall, their conduct did not reach the threshold of unreasonable or delinquent behaviour required for indemnity costs. The appropriate order is that plaintiff pay 80% of defendants’ costs on an ordinary basis due to ultimate failure on relief sought and considering the proportionate success on certain legal points.

Court Disposition

Plaintiff to pay 80% of the defendants’ costs on an ordinary basis.

Orders

  • ["Plaintiff to pay 80% of defendants' costs of proceedings on a party/party basis." 'Parties invited to bring in short minutes to reflect these reasons.']