Bradley Mark Lum v MV Developments (Lane Cove) Pty Ltd (in liquidation) (No 2)

The matter before the court involved a dispute between Bradley Mark Lum, the plaintiff, and MV Developments (Lane Cove) Pty Ltd (in liquidation), the defendant, regarding the specific performance of a contract of sale. The plaintiff sought specific performance of a contract for the sale of a property against the company, which was in liquidation. The liquidators of the company and the liquidators personally were also named as defendants in the proceedings for costs.

The legal issues that the court was required to decide included whether the conduct of the liquidators was unreasonable in not accepting a settlement offer from one creditor, and whether the failure to accept the offer of compromise was unreasonable. Additionally, the court needed to determine whether the general rule that costs follow the event could be deviated from, considering the offer of compromise under the Calderbank principle.

The court found that the conduct of the liquidators was unreasonable as they did not seek judicial advice before entering into the settlement deed and did not file a submitting appearance in relation to the plaintiff's claim for specific performance. The court held that the liquidators' conduct was unreasonable in not accepting the offer of compromise and that the failure to accept the offer was unreasonable, as it provided a practical solution to the dispute. The court further held that the general rule that costs follow the event could be deviated from in this case, considering the Calderbank offer of compromise.

In conclusion, the court ordered that the liquidators of MV Developments (Lane Cove) Pty Ltd (in liquidation) and the liquidators personally pay the costs of the proceedings. The court found that the conduct of the liquidators was unreasonable in not accepting the offer of compromise, and that the failure to accept the offer was unreasonable. The court also held that the general rule that costs follow the event could be deviated from in this case, considering the Calderbank offer of compromise.