Hastie Group Limited (in liq) v Multiplex Constructions Pty Ltd (Formerly Brookfield Multiplex Constructions Pty Ltd) (Costs) [2024] FCAFC 74
The offer did not amount to a genuine compromise but rather a total capitulation, and the applicants' failure to accept it could not be considered unreasonable. Therefore, indemnity costs were not justified.
- Parties
- Applicant: Hastie Group Limited (in liquidation) (ACN 112 803 040); Applicant: Craig David Crosbie (in his capacity as liquidator of the Hastie Group companies listed therein); Applicant: ACN 008 700 178 Pty Ltd (in liquidation) (formerly Direct Engineering Services Pty Ltd); Applicant: ACN 121 276 168 Pty Ltd (in liquidation) (formerly Heyday Group Pty Ltd); Applicant: ACN 129 953 733 Pty Limited (in liquidation) (formerly Beavis & Bartels Pty Ltd); Applicant: AFA Air Conditioning Pty Ltd (in liquidation) ACN 132 180 584; Applicant: Hastie Air Conditioning (ACT) Pty Ltd (in liquidation) ACN 125 173 659; Applicant: Hastie Air Conditioning Pty Ltd (in liquidation) ACN 122 613 647; Applicant: Hastie Australia Pty Ltd (in liquidation) ACN 072 744 248; Applicant: M&H Air Conditioning Pty Ltd (in liquidation) ACN 115 325 089; Applicant: Medical Gases Pty Ltd (in liquidation) ACN 121 276 079; Applicant: Nisbet & Durney Pty Ltd (in liquidation) ACN 131 810 896; Applicant: Optimus Pty Ltd (in liquidation) ACN 001 847 785; Applicant: Sharp & Pendrey Pty Ltd (in liquidation) ACN 006 378 123; Applicant: Watters Electrical (Aust) Pty Ltd (in liquidation) ACN 128 370 570; Applicant: ACN 112 124 919 Pty Ltd (in liquidation) (formerly D&E Air Conditioning Pty Ltd); Applicant: Cooke & Carrick Pty Limited (in liquidation) ACN 126 114 556; Respondent: Multiplex Constructions Pty Ltd (formerly Brookfield Multiplex Constructions Pty Ltd) (ACN 107 007 527); Respondent: Brookfield Multiplex FSH Contractor Pty Limited ACN 135 322 084; Respondent: Lendlease Construction Pty Ltd (formerly Lendlease Building Pty Limited) ACN 000 098 162; Respondent: Lendlease Construction (Southern) Pty Ltd (formerly Lendlease Building Contractors Pty Limited) ACN 002 625 130; Respondent: Acciona Infrastructure Projects Australia Pty Ltd (formerly Lendlease Engineering Pty Ltd and Abigroup Contractors Pty Ltd) ACN 000 201 516; Respondent: Lendlease Construction (QLD/WA) Pty Ltd (formerly Lendlease Building (QLD/WA) Pty Limited and Baulderstone QLD Pty Ltd) ACN 006 505 559; Respondent: CPB Contractors Pty Limited (formerly Leighton Contractors Pty Limited) ACN 000 893 667; Respondent: Hansen Yuncken Pty Ltd ACN 063 384 056; Respondent: John Holland Pty Ltd ACN 004 282 268; Respondent: Laing O'Rourke Australia Construction Pty Ltd 112 099 000; Respondent: Thiess Pty Ltd ACN 010 221 486; Respondent: Watpac Construction Pty Ltd (formerly Watpac Australia Pty Ltd and Watpac Construction (QLD) Pty Ltd) ACN 010 462 816; Respondent: Watpac Construction (NSW) Pty Ltd ACN 103 211 141; Respondent: Watpac Construction (SA) Pty Ltd ACN 128 657 956; Respondent: Watpac Construction (VIC) Pty Ltd ACN 104 451 130; Respondent: Scentre Design & Construction Pty Ltd ACN 000 267 265
- Jurisdiction
- Australia
- Judgment Date
- 11 June 2024
- Procedural Posture
- Costs Application (post Dismissal of Application for Leave to Appeal) / Costs Application Following Dismissal of Application for Leave to Appeal
- Outcome
- Application for indemnity costs dismissed; costs ordered on the ordinary basis for the application for leave to appeal, with respondents to pay costs of indemnity costs application.
- Legal Topics
- Costs, Indemnity Costs, Offer of Compromise
Case Brief
Summary, issues, holding and outcome
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Parties
Hastie Group Limited (in liquidation) (ACN 112 803 040)
Applicant
Craig David Crosbie (in his capacity as liquidator of the Hastie Group companies listed therein)
Applicant
ACN 008 700 178 Pty Ltd (in liquidation) (formerly Direct Engineering Services Pty Ltd)
Applicant
ACN 121 276 168 Pty Ltd (in liquidation) (formerly Heyday Group Pty Ltd)
Applicant
ACN 129 953 733 Pty Limited (in liquidation) (formerly Beavis & Bartels Pty Ltd)
Applicant
AFA Air Conditioning Pty Ltd (in liquidation) ACN 132 180 584
Applicant
Hastie Air Conditioning (ACT) Pty Ltd (in liquidation) ACN 125 173 659
Applicant
Hastie Air Conditioning Pty Ltd (in liquidation) ACN 122 613 647
Applicant
Hastie Australia Pty Ltd (in liquidation) ACN 072 744 248
Applicant
M&H Air Conditioning Pty Ltd (in liquidation) ACN 115 325 089
Applicant
Medical Gases Pty Ltd (in liquidation) ACN 121 276 079
Applicant
Nisbet & Durney Pty Ltd (in liquidation) ACN 131 810 896
Applicant
Optimus Pty Ltd (in liquidation) ACN 001 847 785
Applicant
Sharp & Pendrey Pty Ltd (in liquidation) ACN 006 378 123
Applicant
Watters Electrical (Aust) Pty Ltd (in liquidation) ACN 128 370 570
Applicant
ACN 112 124 919 Pty Ltd (in liquidation) (formerly D&E Air Conditioning Pty Ltd)
Applicant
Cooke & Carrick Pty Limited (in liquidation) ACN 126 114 556
Applicant
Multiplex Constructions Pty Ltd (formerly Brookfield Multiplex Constructions Pty Ltd) (ACN 107 007 527)
Respondent
Brookfield Multiplex FSH Contractor Pty Limited ACN 135 322 084
Respondent
Lendlease Construction Pty Ltd (formerly Lendlease Building Pty Limited) ACN 000 098 162
Respondent
Lendlease Construction (Southern) Pty Ltd (formerly Lendlease Building Contractors Pty Limited) ACN 002 625 130
Respondent
Acciona Infrastructure Projects Australia Pty Ltd (formerly Lendlease Engineering Pty Ltd and Abigroup Contractors Pty Ltd) ACN 000 201 516
Respondent
Lendlease Construction (QLD/WA) Pty Ltd (formerly Lendlease Building (QLD/WA) Pty Limited and Baulderstone QLD Pty Ltd) ACN 006 505 559
Respondent
CPB Contractors Pty Limited (formerly Leighton Contractors Pty Limited) ACN 000 893 667
Respondent
Hansen Yuncken Pty Ltd ACN 063 384 056
Respondent
John Holland Pty Ltd ACN 004 282 268
Respondent
Laing O'Rourke Australia Construction Pty Ltd 112 099 000
Respondent
Thiess Pty Ltd ACN 010 221 486
Respondent
Watpac Construction Pty Ltd (formerly Watpac Australia Pty Ltd and Watpac Construction (QLD) Pty Ltd) ACN 010 462 816
Respondent
Watpac Construction (NSW) Pty Ltd ACN 103 211 141
Respondent
Watpac Construction (SA) Pty Ltd ACN 128 657 956
Respondent
Watpac Construction (VIC) Pty Ltd ACN 104 451 130
Respondent
Scentre Design & Construction Pty Ltd ACN 000 267 265
Respondent
Procedural Posture
Costs Application (post Dismissal of Application for Leave to Appeal) / Costs Application Following Dismissal of Application for Leave to Appeal
Legal Issues
- 1 Whether the applicants should pay the respondents' costs on an indemnity basis as a result of non-acceptance of an offer of compromise under r 25.14(2) of the Federal Court Rules 2011 (Cth)
- 2 Whether the offer amounted to a genuine compromise
- 3 Whether the applicants' failure to accept the offer was unreasonable
Ratio Decidendi
The offer did not amount to a genuine compromise but rather a total capitulation, and the applicants' failure to accept it could not be considered unreasonable. Therefore, indemnity costs were not justified.
Court Disposition
Application for indemnity costs dismissed; costs ordered on the ordinary basis for the application for leave to appeal, with respondents to pay costs of indemnity costs application.
Orders
- The application by the first and second respondents for indemnity costs be dismissed with costs.
- The applicants pay the first and second respondents' costs of the application for leave to appeal.
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