Assaf v Skalkos

In the case of Assaf v Skalkos, the plaintiff, Assaf, sued the defendant, Skalkos, for defamation. The dispute arose from alleged defamatory statements made by Skalkos about Assaf. The case was heard and determined by the Supreme Court of New South Wales. The primary focus of the litigation was on whether Assaf was entitled to indemnity costs from Skalkos, considering the circumstances surrounding a Calderbank offer made by Assaf.

The legal issues before the court involved the interpretation and application of indemnity costs orders in defamation cases, particularly in relation to the timing of such orders when a Calderbank offer is made. The court had to determine whether the plaintiffs were entitled to indemnity costs from the date of the Calderbank offer, which included a requirement for an apology, and whether the offer was effectively rejected by the defendants.

The court concluded that the Calderbank offer, which required an apology from Skalkos, was indeed rejected by the defendants. The offer was considered to be a clear and unequivocal proposal to resolve the dispute, and its rejection entitled Assaf to indemnity costs from the date of the offer. The court emphasised that indemnity costs are a tool to encourage parties to make genuine settlement offers, and the requirement for an apology did not undermine the enforceability of the offer. As a result, the court awarded Assaf indemnity costs from the date the Calderbank offer was made.

The final orders of the court included an award of indemnity costs to Assaf from the date of the Calderbank offer, reflecting the court's determination that the defendants' rejection of the offer justified such an award.