Calibre Construction Group Pty Ltd v Kaloriziko Pty Ltd atf Ryde Combined Unit Trust; Kaloriziko Pty Ltd atf Ryde Combined Unit Trust v Calibre Construction Group Pty Ltd (No 4)

In this case, Calibre Construction Group Pty Ltd initiated proceedings against Kaloriziko Pty Ltd atf Ryde Combined Unit Trust. The dispute centred around a contract for the construction of a building, with Calibre alleging breaches and seeking damages. Kaloriziko, in turn, raised counterclaims. The matter was heard in the Supreme Court of New South Wales. The court was required to determine whether Kaloriziko was entitled to special costs due to the non-acceptance of an offer of compromise and whether the "rule of thumb" approach was applicable for the apportionment of costs given that Kaloriziko succeeded against one defendant but not the other.

The court began by addressing the special costs order. It held that such an order could only be made if the offer was capable of acceptance by both parties. Since the offer in question was not capable of acceptance by both defendants, the court ruled that Kaloriziko was not entitled to special costs. The court then considered the "rule of thumb" approach to apportionment, which is a guideline for allocating costs between parties where one succeeds against some but not all defendants. The court found that this approach was applicable and that it would apportion costs between the successful plaintiff and the unsuccessful defendant.

The Supreme Court ordered that the costs of the proceedings be apportioned according to the "rule of thumb" approach, recognising that Kaloriziko was successful against one defendant but not the other. The court's ruling emphasised the importance of the nature of the offer in determining entitlement to special costs and confirmed the application of the "rule of thumb" approach in such circumstances. The final orders reflected this reasoning, with specific directions for the apportionment of costs between the parties.