Australian Motor Homes Pty Limited v Maria's farm Veggies Pty Limited (Costs)

The plaintiff, Australian Motor Homes Pty Limited, appealed against the decision of the Local Court in relation to costs. The Local Court had ordered that Australian Motor Homes pay costs to the defendant, Maria's Farm Veggies Pty Limited. The defendant applied for indemnity costs under section 84(3) of the Civil Procedure Act 2005 (NSW). The central issue before the court was whether the defendant was entitled to indemnity costs as the prevailing party, and if so, whether the plaintiff's failure to accept a Calderbank offer justified the award of such costs.

The court considered the nature of the appeal and the circumstances under which the defendant had made a Calderbank offer. The court noted that indemnity costs are not awarded lightly and require a point of principle to be established. The court found that the defendant had not demonstrated any point of principle in relation to the settlement offer, and the plaintiff's decision not to accept the offer was not unreasonable. The court concluded that there were no exceptional circumstances warranting the award of indemnity costs.

Accordingly, the appeal was dismissed, and the defendant's application for indemnity costs was rejected. The orders of the Local Court were affirmed, and the defendant was not entitled to indemnity costs.