Carter v Mehmet (No 3)

The parties to this proceeding were Carter (appellant) and Mehmet (respondent). The dispute concerned an application by the respondent for an order that the appellant pay the respondent's costs of certain appeal proceedings, notwithstanding an earlier offer of compromise that had been made in the primary proceedings. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the respondent was entitled to an order for costs of the appeal proceedings, despite the fact that the offer of compromise made in the primary proceedings did not specifically address the appeal. The court was required to consider the circumstances in which it might depart from the general rule that costs follow the event, particularly in relation to offers of compromise that encompass both primary and appellate proceedings.

The Court of Appeal reasoned that the offer of compromise, which had been made in the primary proceedings, was intended to resolve all aspects of the litigation between the parties, including any potential appeals. The court noted that the offer was broad enough to encompass the appeal proceedings, and that the respondent had not made a separate offer specifically for the appeal. Consequently, the court determined that it was not appropriate to make an "otherwise order" in favour of the respondent regarding the costs of the appeal.

The Court of Appeal ordered that paragraphs 2 and 3 of the notice of motion dated 9 December 2021 be dismissed, and that there be no order as to the costs of those paragraphs.