Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd [2009] FCAFC 40

Futuretronics.com.au Pty Ltd v Graphix Labels Pty Ltd [2009] FCAFC 40

The respondents are entitled to costs on an indemnity basis in accordance with Order 23 rule 11(6) of the Federal Court Rules, as the presumption in favour of indemnity costs was not displaced by the appellant, even though its rejection of the offer was not unreasonable.

Parties
Appellant: Futuretronics.com.au Pty Ltd; First Respondent: Graphix Labels Pty Ltd; Second Respondent: John Atta
Jurisdiction
Australia
Judgment Date
27 March 2009
Procedural Posture
Civil Appeal / Final Costs Determination After Appeal
Outcome
Respondents awarded costs on a party and party basis up to 11 am on 8 November 2008 and thereafter on an indemnity basis. Appellant to pay the respondents' costs of the application for indemnity costs.
Legal Topics
Costs, Indemnity Costs, Offers of Compromise, Federal Court Rules
Civil Procedure Costs Indemnity Costs Offers of Compromise Federal Court Rules

Case Brief

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Parties

Futuretronics.com.au Pty Ltd

Appellant

Graphix Labels Pty Ltd

First Respondent

John Atta

Second Respondent

Procedural Posture

Civil Appeal / Final Costs Determination After Appeal

Legal Issues

  1. 1 Whether the respondents are entitled to indemnity costs pursuant to Order 23 rule 11(6) of the Federal Court Rules following rejection of an offer of compromise by the appellant

Ratio Decidendi

The respondents are entitled to costs on an indemnity basis in accordance with Order 23 rule 11(6) of the Federal Court Rules, as the presumption in favour of indemnity costs was not displaced by the appellant, even though its rejection of the offer was not unreasonable.

Court Disposition

Respondents awarded costs on a party and party basis up to 11 am on 8 November 2008 and thereafter on an indemnity basis. Appellant to pay the respondents' costs of the application for indemnity costs.

Orders

  • The respondents have their costs of the appeal incurred up to 11 am on 8 November 2008 on a party and party basis and thereafter on an indemnity basis.
  • The appellant pay the respondents' costs of the application for indemnity costs.