Boral Resources (NSW) Pty Ltd v Gangi

Boral Resources (NSW) Pty Ltd appealed a decision of the primary judge concerning the award of costs to the respondent, Mr. Gangi, who had been successful in his claim. The dispute arose from the primary judge's special order that Mr. Gangi be paid only a percentage of his costs, despite his substantial verdict.

The Court of Appeal was required to determine whether the primary judge erred in exercising their discretion regarding costs. Specifically, the court considered whether it was unreasonable for the defendant to refuse Mr. Gangi's Calderbank offer, whether the defence was improperly maintained, and whether the primary judge had the power to reduce costs even where a plaintiff obtained a substantial verdict.

The Court of Appeal found no error in the primary judge's rejection of the submission that the defence was improperly maintained. Furthermore, the court held that it was not unreasonable for the defendant to refuse the Calderbank offer. However, the Court of Appeal re-exercised its discretion on costs in light of other errors disclosed in the primary judge's reasons. Despite these considerations, the appeal was dismissed with costs.