Mainteck Services Pty Ltd v Stein Heurtey SA (No 2) [2014] NSWCA 214

Mainteck Services Pty Ltd v Stein Heurtey SA (No 2) [2014] NSWCA 214

It was unreasonable for Mainteck not to accept Stein Heurtey's significant compromise offer of 30 October 2013 such that indemnity costs should apply after that date; the making of a gross sum costs order is better determined alongside a related undetermined application in the Equity Division.

Parties
Appellant: Mainteck Services Pty Ltd; First Respondent: Stein Heurtey SA; Second Respondent: Stein Heurtey Australia Pty Ltd
Jurisdiction
Australia
Judgment Date
03 July 2014
Procedural Posture
Appeal / Costs Determination After Appeal
Outcome
Orders made for costs and remittal for further gross sum costs consideration
Legal Topics
Indemnity Costs, Calderbank Offers, Gross Sum Costs Order
Costs Indemnity Costs Calderbank Offers Gross Sum Costs Order

Case Brief

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Parties

Mainteck Services Pty Ltd

Appellant

Stein Heurtey SA

First Respondent

Stein Heurtey Australia Pty Ltd

Second Respondent

Procedural Posture

Appeal / Costs Determination After Appeal

Legal Issues

  1. 1 Whether indemnity costs should be ordered against Mainteck for the appeal
  2. 2 Whether the costs order should be made as a gross sum costs order

Ratio Decidendi

It was unreasonable for Mainteck not to accept Stein Heurtey's significant compromise offer of 30 October 2013 such that indemnity costs should apply after that date; the making of a gross sum costs order is better determined alongside a related undetermined application in the Equity Division.

Court Disposition

Orders made for costs and remittal for further gross sum costs consideration

Orders

  • Mainteck to pay respondents' costs of the appeal: on an ordinary basis for costs incurred on or before 30 October 2013 and application for special costs orders; on an indemnity basis for costs incurred after 30 October 2013 except those for special costs order applications.
  • Remit to Equity Division the questions whether the above costs orders should be subject to a gross sum costs order and, if so, what the gross sum should be.