Carlyon v Town and Country Pubs No. 2 Pty Ltd T/A Queens Hotel Gladstone (No.2)

The case before the court involved Carlyon, the plaintiff, and Town and Country Pubs No. 2 Pty Ltd T/A Queens Hotel Gladstone, the defendant, where the plaintiff sought to recover costs of and incidental to the proceedings. The dispute arose from a claim by the plaintiff against the defendant regarding an alleged injury sustained at the defendant’s premises. The case was heard in the Queensland Civil and Administrative Tribunal.

The primary legal issue before the court was whether the costs of and incidental to the proceedings could be awarded under the general rule of costs following the event, and whether the defendant could be granted an order for costs on an indemnity basis due to the plaintiff's alleged imprudent refusal of a pre-trial offer to compromise. The court needed to determine whether the plaintiff’s refusal to accept the defendant’s offer, made before the trial, was indeed imprudent and warranted a departure from the general rule that costs follow the event.

In addressing the issues, the court examined the general principle that costs follow the event, meaning the unsuccessful party typically bears the costs of the proceeding. However, the court also considered circumstances where an offer to settle the dispute before trial could shift the usual cost allocation if the offer was unreasonably refused. The court concluded that the plaintiff’s refusal of the defendant's offer was imprudent, leading to a departure from the general rule. As such, the court ordered the plaintiff to pay the defendant’s costs of and incidental to the proceeding, to be assessed on a standard basis.

The court's decision was based on the assessment that the plaintiff's refusal of the defendant's offer was not in the best interest of the plaintiff, thus justifying an order for costs on an indemnity basis. The final orders of the court mandated that the plaintiff was to pay the defendant's costs of and incidental to the proceeding, with the assessment to be conducted on a standard basis.