Elilade Pty Ltd v Nonpareil Pty Ltd (No.2) [2002] FCA 1073

Elilade Pty Ltd v Nonpareil Pty Ltd (No.2) [2002] FCA 1073

While CIC withdrew from negotiations unreasonably in June 1999, there existed reasonable issues for CIC to contest at trial concerning the extent of inundation and damage. CIC did not conduct the proceedings with no real chance of success; therefore, costs are awarded on the ordinary basis, not on a solicitor and client basis. A Bullock order is refused as Elilade's claim against Nonpareil was not prompted by CIC's conduct but by Elilade's perception about insurance cover.

Jurisdiction
Australia
Judgment Date
04 September 2002
Procedural Posture
Civil / Post Judgment, Costs Determination
Outcome
Costs orders made; Bullock order refused.
Legal Topics
['costs' 'solicitor and Client Costs' 'bullock Order' 'damages' 'indemnity']
['insurance Law' 'civil Procedure'] ['costs' 'solicitor and Client Costs' 'bullock Order' 'damages' 'indemnity']

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Procedural Posture

Civil / Post Judgment, Costs Determination

Legal Issues

  1. 1 ['Whether costs should be awarded on a solicitor and client basis against CIC Insurance Limited' 'Whether a Bullock order should be made entitling Elilade to recover costs paid to Nonpareil from CIC Insurance Limited']

Ratio Decidendi

While CIC withdrew from negotiations unreasonably in June 1999, there existed reasonable issues for CIC to contest at trial concerning the extent of inundation and damage. CIC did not conduct the proceedings with no real chance of success; therefore, costs are awarded on the ordinary basis, not on a solicitor and client basis. A Bullock order is refused as Elilade's claim against Nonpareil was not prompted by CIC's conduct but by Elilade's perception about insurance cover.

Court Disposition

Costs orders made; Bullock order refused.

Orders

  • ['CIC Insurance Limited pay Elilade Pty Ltd its costs of the action.' 'Elilade Pty Ltd pay Nonpareil Pty Ltd its costs of the action.' 'Application for a Bullock order refused.']