Boss Constructions (NSW) Pty Ltd v Rohrig (NSW) Pty Ltd [No.2]

Case [2019] NSWSC 436


Supreme Court


New South Wales

Medium Neutral Citation: Boss Constructions (NSW) Pty Ltd v Rohrig (NSW) Pty Ltd [No.2] [2019] NSWSC 436
Hearing dates: On the Papers
Decision date: 12 April 2019
Jurisdiction:Equity - Technology and Construction List
Before: Hammerschlag J
Decision:

No order as to costs

Catchwords: COSTS - claim and cross-claim dismissed - defendant /cross-claimant makes Calderbank Offer on the Friday preceding the commencement of the trial offering dismissal of the claim and $50,000 to be set off against a pre-existing costs order in its favour, the offer to be open until 10.00am on the day of the trial
HELD - in substance there is no event because both parties won and lost and plaintiff/cross-defendant did not act unreasonably in not accepting the Calderbank Offer - No order as to costs
Category:Costs
Parties: Boss Constructions (NSW) Pty Ltd – First Plaintiff/Cross-Defendant
Nicholas Bobos – Second Plaintiff
Rohrig (NSW) Pty Ltd – Defendant/Cross-Claimant
Representation: Counsel:
N Bobos – Director of First Plaintiff/Cross-Defendant, with leave, and for himself
M A Ashhurst SC and L Corbett – Defendant / Cross‑Claimant
Solicitors:
BCP Lawyers & Consultants – Defendant / Cross‑Claimant
File Number(s): 2018/289865

EX TEMPORE JUDGMENT

Introduction

  1. HIS HONOUR:   On 5 April 2019 I gave judgment dismissing the plaintiff’s claim and the defendant’s cross-claim. The question of costs remains.

  2. I have received written submissions from both parties.

  3. Boss’s position is that Rohrig should pay all of its costs. There is no sound basis for this.

  4. Rohrig’s position is that Boss should pay 75 per cent of its costs up to and including 15 March 2019 and on an indemnity basis thereafter on the footing that Rohrig’s cross-claim occupied 20-30% of the four day hearing and Boss occupied the balance of the time. It puts that the hearing time was extended because Boss choose not to engage lawyers. For indemnity costs it relies on a letter said to be a Calderbank Offer directed to Boss on 15 March 2019, that is the Friday before the trial commenced. It offered $50,000 to be set off against an order for costs which Rohrig has against Boss, and the dismissal of the proceedings.

  5. The offer was open until 10.00am on the first day of the trial.

  6. I do not consider that Boss’ failure to accept this offer was unreasonable. It came too late and offered, in effect, a capitulation in the proceedings and a credit towards an existing costs order.

  7. The central question in both claims was the terms of the contract. This occupied the vast bulk of the case.

  8. Looked at as a matter of substance there was no event in this case.

  9. Both parties lost and both parties won.

  10. In my view, the appropriate exercise of my discretion as to costs, is to make no order, to the intent that each party shall pay its own.

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Details
AGLC
Boss Constructions (NSW) Pty Ltd v Rohrig (NSW) Pty Ltd [No.2] [2019] NSWSC 436
Case
[2019] NSWSC 436
Decision Date

CaseChat Overview and Summary

The case involved a dispute between Boss Constructions (NSW) Pty Ltd and Rohrig (NSW) Pty Ltd. The plaintiff, Boss Constructions, initially filed a claim against the defendant, Rohrig, for certain construction-related costs. Rohrig subsequently filed a cross-claim against the plaintiff. The case was heard in the Supreme Court of New South Wales. Rohrig made a Calderbank Offer on the Friday before the trial, proposing that the plaintiff's claim be dismissed and that $50,000 be set off against a pre-existing costs order in Rohrig's favour. The offer was to remain open until 10.00am on the day of the trial.

The legal issues before the court centred on whether the plaintiff acted unreasonably in not accepting the Calderbank Offer and whether costs should be awarded to either party. The court had to consider the appropriateness of the Calderbank Offer, the timing of the offer, and whether the plaintiff's refusal to accept it was justified under the circumstances. The court also needed to determine whether any costs should be awarded to either party and, if so, in what amount.

The court found that the Calderbank Offer was made in good faith and was a reasonable offer under the circumstances. However, it concluded that the plaintiff did not act unreasonably in rejecting the offer. The court considered the timing of the offer, noting that it was made on the Friday before the trial, and the lack of opportunity for the plaintiff to properly consider the offer. The court also took into account the fact that the plaintiff had a valid cross-claim against Rohrig and that the plaintiff's decision not to accept the offer was not unreasonable. As a result, the court dismissed both the plaintiff's claim and Rohrig's cross-claim and made no order as to costs.

In summary, the court found that neither party was at fault for the outcome of the case, and therefore, no costs were awarded to either party. The decision highlights the importance of the timing and circumstances surrounding a Calderbank Offer and the need for both parties to consider such offers carefully.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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