Baldrudgery Nominees Pty Limited v Landmark Operations Limited

In the Federal Court, Baldrudgery Nominees Pty Limited, the plaintiff, brought a case against Landmark Operations Limited, the defendant, over an unresolved dispute. The plaintiff sought costs and damages related to the proceedings. The central issue before the court was the allocation of costs, particularly in light of the defendant's late offer of compromise and the implications of the plaintiff's acceptance of a lower settlement amount.

The court examined whether the costs incurred by the plaintiff after the defendant's offer of compromise on 20 November 2018 should be subject to indemnity costs, as stipulated by the terms of the offer. The plaintiff had obtained a judgment for $48,420 plus costs on 26 August 2019, which was significantly less than the defendant's initial offer of $140,000. The defendant conceded liability on the first day of the hearing, leading to a complex issue of whether the plaintiff should be liable for costs from the date of the offer or if the order for indemnity costs should be limited to those costs referrable to the issue of damages.

The court concluded that the defendant should bear the costs of the proceedings up until the date of the offer of compromise, while the plaintiff should bear the costs on an indemnity basis from the date of the offer. The court exercised its discretion to split the costs order, considering the timing and nature of the compromise offer and the subsequent proceedings. The court found that the plaintiff was entitled to costs up until the date of the offer, but thereafter, the plaintiff should bear the costs on an indemnity basis. This decision reflects the court's approach to balancing the interests of the parties and the principles of offers of compromise in litigation.