Murphy v Gillis and Ors [2022] NSWSC 1160

Murphy v Gillis and Ors [2022] NSWSC 1160

In the circumstances of this case, including the plaintiff's rejection and counteroffer after a genuine offer of compromise, there is no rational reason to depart from the standard consequence of ordering indemnity costs after the offer date, as prescribed by r 42.15A UCPR.

Parties
Plaintiff: Louise Murphy; First Defendant: Michael Joseph Gillis; Second Defendant: Gana Holdings Pty Ltd; Third Defendant: Gana Holdings Pty Ltd as trustee for Gana Holdings Trust trading as Gillis Delaney Lawyers
Jurisdiction
Australia
Judgment Date
26 August 2022
Procedural Posture
Civil / Post Judgment Costs Application
Outcome
Special costs order granted in favour of defendants; plaintiff to pay costs up to 5pm 24 July 2019 on ordinary basis and thereafter on indemnity basis, and costs of the application for the special cost order.
Legal Topics
Costs, Special Order as to Costs, Indemnity Costs, Offer to Compromise
Civil Procedure Costs Special Order as to Costs Indemnity Costs Offer to Compromise

Case Brief

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Parties

Louise Murphy

Plaintiff

Michael Joseph Gillis

First Defendant

Gana Holdings Pty Ltd

Second Defendant

Gana Holdings Pty Ltd as trustee for Gana Holdings Trust trading as Gillis Delaney Lawyers

Third Defendant

Procedural Posture

Civil / Post Judgment Costs Application

Legal Issues

  1. 1 Should a special costs order be made for indemnity costs after rejection of offer to compromise under r 20.26 UCPR?
  2. 2 Was the offer of compromise a genuine settlement attempt or mere tactical posturing?
  3. 3 Is there a rational basis to depart from the presumptive effect of r 42.15A UCPR in this case?

Ratio Decidendi

In the circumstances of this case, including the plaintiff's rejection and counteroffer after a genuine offer of compromise, there is no rational reason to depart from the standard consequence of ordering indemnity costs after the offer date, as prescribed by r 42.15A UCPR.

Court Disposition

Special costs order granted in favour of defendants; plaintiff to pay costs up to 5pm 24 July 2019 on ordinary basis and thereafter on indemnity basis, and costs of the application for the special cost order.

Orders

  • Order 2, pronounced on 25 March 2022, amended: '2. The plaintiff to pay the defendant's costs up to and including 5pm on 24 July 2019 on an ordinary basis and thereafter on an indemnity basis, as agreed or assessed.'
  • The plaintiff to pay the defendant's costs of the application for a special cost order.