Arnold v Forsythe (No 2)

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.