Campaigntrack Pty Ltd v Real Estate Tool Box Pty Ltd (No 2)

Campaigntrack Pty Ltd, the appellant, sought indemnity costs against Real Estate Tool Box Pty Ltd and others, the respondents, in a proceeding that originated from an application for an order that the respondents pay the appellant’s costs on an indemnity basis. The appeal was from the decision of the primary judge, who had dismissed the appellant’s application for indemnity costs. The respondents had made an offer of compromise which the appellant had rejected. The case was heard in the Full Court of the Federal Court of Australia.

The central issue before the court was whether the appellant was entitled to indemnity costs, given the offer of compromise made by the respondents, and whether the appellant’s rejection of the offer was unreasonable. The court was required to determine whether there was a reason to depart from the guiding principle for the award of indemnity costs, as well as to consider the reasonableness of the appellant’s decision not to accept the offer of compromise.

The court found that there was no reason to depart from the guiding principle for the award of indemnity costs, which generally requires the losing party to pay the winning party’s costs on an indemnity basis. The court also held that it was not unreasonable for the appellant to reject the offer of compromise, as the offer did not address the appellant’s entitlement to indemnity costs. Consequently, the court ordered that the respondents must pay the appellant’s costs of the appeal and the proceeding in the Federal Court, to be determined by a registrar of the court.

In summary, the Full Court of the Federal Court of Australia granted the appellant’s application for indemnity costs and ordered that the respondents must pay the appellant’s costs of the appeal and the proceeding in the Federal Court. The costs were to be determined by a registrar of the court and payable within 28 days of the order.