Taheri v Vitek (No 2) [2014] NSWCA 344

Taheri v Vitek (No 2) [2014] NSWCA 344

Indemnity costs should be ordered from 2 May 2014 onwards because, by that date, the respondents had incurred substantial costs, the final offer represented a significant compromise, and it was unreasonable for the appellant not to accept it. Earlier 'walk-away' offers did not justify indemnity costs as they did not involve meaningful compromise given the timing.

Parties
Appellant: Veeda Taheri; First Respondent: Peter Vitek; Second Respondent: Shoshana Vitek
Jurisdiction
Australia
Judgment Date
03 October 2014
Procedural Posture
Appeal / Post Judgment Costs Application
Outcome
Variation of costs orders granted in favour of the respondents; appellant to pay specified costs as varied.
Legal Topics
Costs, Offer of Compromise, Indemnity Costs, Variation of Orders
Civil Procedure Costs Offer of Compromise Indemnity Costs Variation of Orders

Case Brief

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Parties

Veeda Taheri

Appellant

Peter Vitek

First Respondent

Shoshana Vitek

Second Respondent

Procedural Posture

Appeal / Post Judgment Costs Application

Legal Issues

  1. 1 Whether costs orders should be varied to award indemnity costs after a 'walk-away' offer of compromise was not accepted.
  2. 2 Whether the respondents are entitled to costs of the notice of motion.

Ratio Decidendi

Indemnity costs should be ordered from 2 May 2014 onwards because, by that date, the respondents had incurred substantial costs, the final offer represented a significant compromise, and it was unreasonable for the appellant not to accept it. Earlier 'walk-away' offers did not justify indemnity costs as they did not involve meaningful compromise given the timing.

Court Disposition

Variation of costs orders granted in favour of the respondents; appellant to pay specified costs as varied.

Orders

  • Vary order 1 made on 1 July 2014 to order that the appellant pay the respondents' costs of the proceedings on an ordinary basis until 1 May 2014, and on an indemnity basis thereafter.
  • Order that the appellant pay the respondents' costs of the notice of motion filed 9 July 2014.