Calmmonth Pty Ltd v AVJennings Properties Limited (No 2)

The case of Calmmonth Pty Ltd v AVJennings Properties Limited (No 2) involved a dispute between a plaintiff, Calmmonth Pty Ltd, and a defendant, AVJennings Properties Limited, which was before the court for consideration of costs. The primary issue was whether the plaintiff acted unreasonably by not accepting a settlement offer made by the defendant, which is often referred to as a Calderbank offer. This type of offer is a non-admission of liability settlement offer, and refusing it can lead to an order for costs.

The court was required to determine if the plaintiff's refusal to accept the defendant's offer was reasonable. This involved examining the nature of the offer, the stage of the proceedings at which it was made, and the reasons provided by the plaintiff for not accepting it. The court's analysis was focused on whether the refusal was justified in the circumstances, considering the potential benefits and risks associated with proceeding to trial.

In delivering its decision, the court concluded that the plaintiff's refusal was unreasonable. The court reasoned that the offer was comprehensive and fair, providing a practical and efficient resolution to the dispute. The court further found that the plaintiff's reasons for rejecting the offer were not compelling enough to justify the refusal. Consequently, the court ordered that the plaintiff bear the costs of the proceeding, including the reserved costs, subject to assessment if not agreed upon by the parties.

The orders of the court mandated that the defendant would pay the plaintiff's costs related to the application for a special costs order, while the plaintiff would bear the costs of the proceeding, unless the parties could agree on an alternative arrangement. If agreement could not be reached within seven days, the defendant could apply to the court to fix the costs, avoiding a formal assessment process.