Ada Evans Chambers Pty Limited v Santisi (No. 2)

The case of Ada Evans Chambers Pty Limited versus Santisi was before the Supreme Court of New South Wales. The plaintiff, Ada Evans Chambers Pty Limited, was a company that had purchased a property from the defendant, Santisi. The plaintiff claimed damages for various alleged breaches of contract by the defendant. The defendant, in turn, argued that the plaintiff's claims were baseless and sought to have the proceedings dismissed. The central issue before the court was the determination of costs, specifically whether the plaintiff should be required to pay the defendant's costs on an indemnity basis.

The court was required to decide whether it was appropriate to order the plaintiff to pay the defendant's costs on an indemnity basis. This issue hinged on whether the plaintiff had acted unreasonably in rejecting the defendant's offer to settle the proceedings by walking away without seeking costs. The plaintiff had initially rejected the defendant's offer, only to later seek an order for costs on a standard basis. The court needed to consider the conduct of both parties and whether the plaintiff's rejection of the defendant's offer was reasonable or unreasonable.

The court found that it was unreasonable for the plaintiff to reject the defendant's offer to settle the proceedings without seeking costs. The plaintiff's subsequent application for costs on a standard basis was seen as an attempt to obtain a better outcome than that offered by the defendant. The court held that the plaintiff's conduct in this regard warranted an order for costs on an indemnity basis. The court emphasised the importance of parties considering settlement offers seriously and acting reasonably in doing so. Accordingly, the plaintiff was ordered to pay the defendant's costs on an indemnity basis.