In the matter of Natural Raw C Pty Ltd (No 3) [2022] NSWSC 1443

In the matter of Natural Raw C Pty Ltd (No 3) [2022] NSWSC 1443

Where a hearing to fix the price of shares follows a compromise of substantive proceedings, there is still a costs 'event' for the purpose of applying the usual rule that costs follow the event. The rejection of a properly formulated Calderbank offer may justify an indemnity costs order if such rejection was unreasonable considering the knowledge held by the rejecting party at the time.

Jurisdiction
Australia
Judgment Date
24 October 2022
Procedural Posture
Costs Application / Post Judgment; Costs Determination After Principal Judgment
Outcome
Mixed orders as to costs, including no order up to 6 March 2022, Plaintiff to pay Second Defendant's party/party costs then indemnity costs for specified later period
Legal Topics
['party/party Costs' 'calderbank Offers' 'special Costs Orders' 'compromise of Proceedings']
['equity' 'costs'] ['party/party Costs' 'calderbank Offers' 'special Costs Orders' 'compromise of Proceedings']

Case Brief

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Procedural Posture

Costs Application / Post Judgment; Costs Determination After Principal Judgment

Legal Issues

  1. 1 ['Whether costs should follow the event when the hearing was to determine the price of shares as part of a compromise' 'Whether the rejection of Calderbank offers by the Plaintiff was unreasonable to justify a special (indemnity) costs order']

Ratio Decidendi

Where a hearing to fix the price of shares follows a compromise of substantive proceedings, there is still a costs 'event' for the purpose of applying the usual rule that costs follow the event. The rejection of a properly formulated Calderbank offer may justify an indemnity costs order if such rejection was unreasonable considering the knowledge held by the rejecting party at the time.

Court Disposition

Mixed orders as to costs, including no order up to 6 March 2022, Plaintiff to pay Second Defendant's party/party costs then indemnity costs for specified later period

Orders

  • ['No order as to costs of the proceedings up to and including 6 March 2022.' "Plaintiff to pay the Second Defendant's costs on an ordinary basis from 7 March 2022 to 15 September 2022 and on an indemnity basis from 15 September to 30 September 2022." "No order as to costs of the parties' applications for special...