Ceccon Transport Pty Ltd & Ors v Tomazos Group Pty Ltd (No 2)

In the matter of Ceccon Transport Pty Ltd and others versus Tomazos Group Pty Ltd, the parties were engaged in a dispute concerning various contractual obligations and alleged breaches. The case was heard in the Supreme Court of New South Wales, where the plaintiffs sought relief for the defendant's failure to comply with certain procedural obligations, including the requirement to provide proper discovery of documents, as mandated by Practice Direction No. 6 of 2009. The plaintiffs also argued for indemnity costs due to the defendant's unreasonable refusal to accept a Calderbank offer.

The court was required to determine whether the defendant's non-compliance with the procedural obligations resulted in undue delay and incurred unnecessary costs, warranting indemnity costs. Additionally, the court had to decide whether the refusal of the Calderbank offer was reasonable and if the interest rates on costs and pre-judgment damages should be adjusted due to the defendant's failure to comply with the procedural requirements.

The court found that the defendant's failure to comply with Practice Direction No. 6 of 2009 significantly prolonged the dispute and was far below the standard expected of a properly advised litigant. This non-compliance led to the plaintiffs incurring unnecessary costs and prevented a proper resolution of the proceedings. The court also found that the refusal to accept the Calderbank offer was unreasonable. Consequently, the court ordered the defendant to pay indemnity costs and determined that the interest on costs should be calculated at 9% per annum, while the interest on pre-judgment damages should be at ordinary commercial rates, with the prescribed post-judgment rates serving as a useful guide in the absence of specific evidence.

The court made several orders, including judgments in favour of the plaintiffs for specified amounts, dismissal of the amended counterclaim, and an order for the parties to pay costs on a standard basis until a certain date and on an indemnity basis thereafter, with interest at the prescribed rate.