Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd (No 2) [2015] NSWSC 687

Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd (No 2) [2015] NSWSC 687

Calderbank and compromise offers made by the defendants did not represent a genuine compromise and were in substance derisory; proceedings involved significant contentious issues reasonably arguable on both sides; therefore, costs should be payable on the ordinary basis, not on the indemnity basis.

Parties
Plaintiff: Harold R Finger & Co Pty Ltd; First Defendant: Karellas Investments Pty Ltd; Second Defendant: Karellas Group Pty Ltd
Jurisdiction
Australia
Judgment Date
02 June 2015
Procedural Posture
Costs Application / Post Judgment (costs Orders)
Outcome
Costs payable on the ordinary basis; leave to file affidavit granted.
Legal Topics
Costs, Calderbank Offers, Indemnity Costs, Offer of Compromise
Civil Procedure Costs Calderbank Offers Indemnity Costs Offer of Compromise

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Parties

Harold R Finger & Co Pty Ltd

Plaintiff

Karellas Investments Pty Ltd

First Defendant

Karellas Group Pty Ltd

Second Defendant

Procedural Posture

Costs Application / Post Judgment (costs Orders)

Legal Issues

  1. 1 Whether costs should be awarded on the indemnity basis or the ordinary basis
  2. 2 Effectiveness of Calderbank and compromise offers by the defendants

Ratio Decidendi

Calderbank and compromise offers made by the defendants did not represent a genuine compromise and were in substance derisory; proceedings involved significant contentious issues reasonably arguable on both sides; therefore, costs should be payable on the ordinary basis, not on the indemnity basis.

Court Disposition

Costs payable on the ordinary basis; leave to file affidavit granted.

Orders

  • The costs that the plaintiff is required to pay to the defendants under order 2 made on 2 April 2015 be payable on the ordinary basis.
  • The defendants have leave to file the affidavit of Laura Charlotte Scotton sworn on 8 April 2015.