Aquatec-Maxcon Pty Ltd v Barwon Region Water Authority

Aquatec-Maxcon Pty Ltd was involved in a legal dispute with the Barwon Region Water Authority. The matter before the court was the allocation of costs between the defendants, Aquatec-Maxcon and Barwon Region Water Authority, arising from unsuccessful claims for apportionment and contribution. The court had to determine whether an indemnity costs order should be made against the party that was generally resistant to settlement, particularly in the context of a Calderbank offer.

The legal issue at hand was the appropriate allocation of costs in a multi-level apportionment claim, where one party made a Calderbank offer. The court needed to consider the principles governing costs in unsuccessful claims, the nature of the Calderbank offer, and the conduct of the parties in the settlement process. Specifically, the court had to assess whether the party that was resistant to settlement should bear the costs of the unsuccessful claims.

In delivering the judgment, the court emphasised the importance of the Calderbank offer in the context of the multi-level apportionment claims. It noted that a Calderbank offer could be a significant factor in determining the allocation of costs, particularly where one party had been resistant to settlement. The court found that the party that was generally resistant to settlement should bear the costs of the unsuccessful claims. This decision was based on the conduct of the parties during the settlement process and the overall fairness of the outcome. The court concluded that an indemnity costs order should be made against the party that was resistant to settlement, given their conduct and the nature of the Calderbank offer.

The final orders of the court included an indemnity costs order against the party that was generally resistant to settlement, reflecting the court's assessment of the conduct of the parties and the principles governing costs in unsuccessful claims.