Re MF Global Australia Ltd (in liq); Hopper v Campbell in his capacity as liquidator of MF Global Australia Ltd (in liq) [2015] NSWSC 1583

Re MF Global Australia Ltd (in liq); Hopper v Campbell in his capacity as liquidator of MF Global Australia Ltd (in liq) [2015] NSWSC 1583

It was not unreasonable for Mr Hopper to reject the 2013 Calderbank offer, as it was made at an early stage of the proceedings, before pleadings and before he had access to critical documents, and the compromise offered would have required him to surrender substantial claims; thus, indemnity costs should only commence from 2 August 2014, following the later rejected offer of compromise.

Parties
Plaintiff: Garry Raymond Hopper; First Defendant: Christopher Robert Campbell in his capacity as liquidator of MF Global Australia Limited (in liquidation); Second Defendant: David John Frank Lombe in his capacity as liquidator of MF Global Australia Limited (in liquidation); Third Defendant: Vaughan Neil Strawbridge in his capacity as liquidator of MF Global Australia Limited (in liquidation)
Jurisdiction
Australia
Judgment Date
27 October 2015
Procedural Posture
Appeal Under S 1321 Corporations Act 2001 (cth) / Post Judgment, Costs Determination
Outcome
Proceedings dismissed. Costs orders made.
Legal Topics
Costs, Orders for Costs on Indemnity Basis, Calderbank Offers, Reasonableness of Rejection of Compromise Offers
Corporations Law Equity Costs Orders for Costs on Indemnity Basis Calderbank Offers Reasonableness of Rejection of Compromise Offers

Case Brief

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Parties

Garry Raymond Hopper

Plaintiff

Christopher Robert Campbell in his capacity as liquidator of MF Global Australia Limited (in liquidation)

First Defendant

David John Frank Lombe in his capacity as liquidator of MF Global Australia Limited (in liquidation)

Second Defendant

Vaughan Neil Strawbridge in his capacity as liquidator of MF Global Australia Limited (in liquidation)

Third Defendant

Procedural Posture

Appeal Under S 1321 Corporations Act 2001 (cth) / Post Judgment, Costs Determination

Legal Issues

  1. 1 Whether Plaintiff should pay indemnity costs from the date of a rejected Calderbank offer
  2. 2 Whether it was unreasonable for the Plaintiff to reject the Calderbank offer

Ratio Decidendi

It was not unreasonable for Mr Hopper to reject the 2013 Calderbank offer, as it was made at an early stage of the proceedings, before pleadings and before he had access to critical documents, and the compromise offered would have required him to surrender substantial claims; thus, indemnity costs should only commence from 2 August 2014, following the later rejected offer of compromise.

Court Disposition

Proceedings dismissed. Costs orders made.

Orders

  • The proceedings be dismissed.
  • The Plaintiff pay the Defendants' costs on the ordinary basis until 1 August 2014 and thereafter on an indemnity basis, as agreed or as assessed.