Arnold v Forsythe (No 2)

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Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Arnold v Forsythe (No 2) [2012] NSWCA 283
Hearing dates:On the papers
Decision date: 13 September 2012
Before: McColl JA at [1]
Sackville AJA at [2]
Decision:

1. The appellant's motion filed on 8 March 2012 be dismissed.

2. The appellant pay the respondents' costs of the motion.

3. The respondents, if otherwise qualified, have a certificate in respect of the appeal under the Suitors Fund Act 1951.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: COSTS - application based on Calderbank letter - no genuine offer of compromise.
Legislation Cited: Suitors Fund Act 1951
Cases Cited: N/A
Texts Cited: N/A
Category:Costs
Parties:

Peter Munro Arnold (Applicant)

David Ross Forsythe (First Respondent)

Graeme John Weidenhofer (Second Respondent)

Paul Geoffrey Mannion trading as Rost & Kitchener, Chartered Accountants (Third Respondent)
Representation: Counsel:
B.K. Nolan (Applicant)
N/A (Respondents)
Solicitors:
John Conti Lawyer (Applicant)
Beswick Lynch Lawyers (Respondents)
File Number(s):2008/318542-006
 Decision under appeal 
Date of Decision:
2011-03-04 00:00:00
Before:
Truss DCJ
File Number(s):
2008/318542

Judgment

  1. McCOLL JA: I agree with Sackville AJA.

  1. SACKVILLE AJA: In Arnold v Forsythe [2012] NSWCA 18, this Court (McColl JA, Young JA and Sackville AJA) allowed an appeal from a decision of a Judge of the District Court (Truss DCJ). On 4 March 2011, her Honour dismissed a motion by the appellant (the defendant in the District Court) seeking orders:

  • setting aside an order made by the District Court on 19 August 2010 striking out the appellant's defence and dismissing the appellant's cross-claim;
  • setting aside a District Court judgment entered on 30 September 2010 in favour of the respondents on 30 September 2010 for $260,467.60;
  • setting aside an order made by the District Court on 14 October 2010 for the payment by the appellant of interest of $46,871.04; and
  • granting liberty to the appellant to file an amended defence and cross-claim in the District Court proceedings.
  1. The orders made by this Court on 23 February 2012 were as follows (at [89], [91] and [100]):

"1.Appeal allowed.
2.Orders made by Truss DCJ on 4 March 2011 be set aside.
3.The default judgment and orders made by Truss DCJ on 30 September 2010 and 14 October 2010 be set aside.
4.Remit to the District Court for hearing and determination Prayer 2(b) of the notice of appeal dated 19 August 2011.
5.The appellant pay the costs of the respondents:
(a)thrown away by reason of the entry of default judgment on 30 September 2010, including the costs of the hearing on 30 September 2010;
(b)thrown away by reason of the entry of default judgment on 14…
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Details
Case
[2012] NSWCA 283
Decision Date

CaseChat Overview and Summary

In *Arnold v Forsythe (No 2)*, the appellant sought to set aside a judgment that had been entered against them. The application was brought following the respondents' rejection of a *Calderbank* letter, which the appellant contended constituted a genuine offer of compromise. The matter came before McColl JA and Sackville AJA of the Court of Appeal of New South Wales.

The central legal issue before the Court was whether the *Calderbank* letter constituted a genuine offer of compromise, and consequently, whether the appellant should be awarded costs on an indemnity basis. This required the Court to assess the nature and sincerity of the offer made in the *Calderbank* letter in light of the surrounding circumstances and the appellant's subsequent conduct.

The Court determined that the *Calderbank* letter did not represent a genuine offer of compromise. Their Honours found that the offer was not made in good faith, noting that it was presented in a manner that suggested it was not intended to be accepted. Consequently, the Court dismissed the appellant's motion.

The appellant was ordered to pay the respondents' costs of the motion. Furthermore, the respondents were granted a certificate in respect of the appeal under the *Suitors Fund Act 1951*, provided they met the relevant qualifications.

Orders

Orders of the court

1. The appellant's motion filed on 8 March 2012 be dismissed.

2. The appellant pay the respondents' costs of the motion.

3. The respondents, if otherwise qualified, have a certificate in respect of the appeal under the Suitors Fund Act 1951.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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