Calix Limited v Grenof Pty Ltd (No 2) [2023] FCA 832

Calix Limited v Grenof Pty Ltd (No 2) [2023] FCA 832

The applicant's rejection of the settlement offer was unreasonable in the circumstances, considering the apparent weaknesses of its case and the opportunity to withdraw without cost; thus, the respondents are entitled to costs on an indemnity basis from 11am, 9 September 2022 (first respondent) and party and party basis in other respects.

Parties
Applicant: Calix Limited; First Respondent / Cross Claimant: Grenof Pty Ltd; Second Respondent: Aquadex Pty Ltd
Jurisdiction
Australia
Judgment Date
27 July 2023
Procedural Posture
Patent Litigation and Cross Claim / Post Judgment Costs Determination
Outcome
Applicant ordered to pay the respondents' costs, party and party basis up to 11am on 9 September 2022 (first respondent), indemnity basis thereafter, and party and party basis for second respondent.
Legal Topics
Patents, Costs, Offer of Compromise, Indemnity Costs
Intellectual Property Patents Costs Offer of Compromise Indemnity Costs

Case Brief

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Parties

Calix Limited

Applicant

Grenof Pty Ltd

First Respondent / Cross Claimant

Aquadex Pty Ltd

Second Respondent

Procedural Posture

Patent Litigation and Cross Claim / Post Judgment Costs Determination

Legal Issues

  1. 1 Whether the first respondent should be awarded costs on an indemnity basis
  2. 2 Whether applicant's failure to accept an offer of compromise was unreasonable under r 25.14(2) Federal Court Rules 2011 (Cth)

Ratio Decidendi

The applicant's rejection of the settlement offer was unreasonable in the circumstances, considering the apparent weaknesses of its case and the opportunity to withdraw without cost; thus, the respondents are entitled to costs on an indemnity basis from 11am, 9 September 2022 (first respondent) and party and party basis in other respects.

Court Disposition

Applicant ordered to pay the respondents' costs, party and party basis up to 11am on 9 September 2022 (first respondent), indemnity basis thereafter, and party and party basis for second respondent.

Orders

  • The costs payable by the applicant pursuant to order 5 made on 28 April 2023 be assessed as follows: (a) in respect of the first respondent, on a party and party basis up until 11am on 9 September 2022 and on an indemnity basis thereafter; (b) in respect of the second respondent, on a party and party basis.