Allen v Chadwick (No 2)

This matter concerned an appeal from a decision of a single judge of the Supreme Court of South Australia. The appellant, Mr Allen, appealed against the assessment of damages and the order for costs made in favour of the respondent, Ms Chadwick, following a trial concerning a road accident.

The primary legal issues before the Full Court were whether the trial judge erred in their assessment of certain components of Ms Chadwick's damages, and whether the trial judge erred in their costs order, specifically in awarding Ms Chadwick her costs of the whole action on a solicitor-client basis, albeit reduced by 15 per cent.

The Full Court found no reason to disturb the trial judge's assessment of Ms Chadwick's damages, noting that nothing had been put before them to justify such an alteration. Regarding costs, the Court considered the trial judge's decision in light of the purpose of the relevant court rules concerning offers to settle, which aim to encourage reasonable offers and promote the economic disposition of litigation. The trial judge had noted that Ms Chadwick's outcome at trial bettered her liability offer, and while her damages assessment offer was not met, the judge considered the overall objectives of the rules. The Court affirmed the trial judge's discretion in making the costs order, including the reduction for time spent litigating aspects of the damages claim based on exaggerated evidence.

The Full Court ordered that judgment be entered in favour of Ms Chadwick for $1,803,903.36, inclusive of interest, in addition to interim payments already made. The costs order made by the trial judge, awarding Ms Chadwick her costs of the whole action on a solicitor-client basis reduced by 15 per cent, was upheld.