Exxon v Chadtech [1999] NSWSC 613

Exxon v Chadtech [1999] NSWSC 613

Because the plaintiff notified the defendant on 2 March 1999 that it no longer intended to press the allegation of misconduct against the arbitrator raised in paragraph C11, the proper inference was that the plaintiff ought not to have commenced the proceedings with that paragraph included and had no case in relation to that matter. Indemnity costs were therefore appropriate for the paragraph C11 issue, but the remainder of the defendant's costs were to be paid only on a party-party basis.

Jurisdiction
Australia
Judgment Date
22 June 1999
Procedural Posture
Costs Determination Following Summons Concerning Misconduct Allegations Against an Arbitrator and Leave to Appeal From an Arbitral Award / Costs Argument After Judgment Delivered on 11 June 1999
Outcome
Summons dismissed; plaintiff ordered to pay the defendant's costs on differing bases.
Legal Topics
['indemnity Costs' 'party Party Costs' 'calderbank Offer' 'abandoned Allegation of Arbitrator Misconduct' 'natural Justice in Arbitration']
['civil Procedure' 'costs' 'arbitration' 'construction Law'] ['indemnity Costs' 'party Party Costs' 'calderbank Offer' 'abandoned Allegation of Arbitrator Misconduct' 'natural Justice in Arbitration']

Case Brief

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Procedural Posture

Costs Determination Following Summons Concerning Misconduct Allegations Against an Arbitrator and Leave to Appeal From an Arbitral Award / Costs Argument After Judgment Delivered on 11 June 1999

Legal Issues

  1. 1 ["Whether the plaintiff should pay the defendant's costs of the whole proceedings on an indemnity basis." 'Whether indemnity costs should be ordered for the issue raised by paragraph C11 of the summons after the plaintiff decided not to press that allegation.']

Ratio Decidendi

Because the plaintiff notified the defendant on 2 March 1999 that it no longer intended to press the allegation of misconduct against the arbitrator raised in paragraph C11, the proper inference was that the plaintiff ought not to have commenced the proceedings with that paragraph included and had no case in relation to that matter. Indemnity costs were therefore appropriate for the paragraph C11 issue, but the remainder of the defendant's costs were to be paid only on a party-party basis.

Court Disposition

Summons dismissed; plaintiff ordered to pay the defendant's costs on differing bases.

Orders

  • ['Summons dismissed.' "The plaintiff is to pay the defendant's costs in relation to the issue raised by paragraph C11 of the contentions in the summons on an indemnity basis and the plaintiff is otherwise to pay the defendant's costs on a party party basis."]