Centor Australia Pty Ltd v RMD Industries Pty Ltd (No 2)

Centor Australia Pty Ltd, the applicant, brought proceedings against RMD Industries Pty Ltd, the respondent, for patent infringement. The matter was before the Federal Court, where the applicant sought an award of indemnity costs against the respondent. The dispute centred around the respondent's rejection of a Calderbank offer made by the applicant. The applicant argued that the respondent's rejection was unreasonable and warranted the award of indemnity costs.

The court had to determine whether the rejection of the Calderbank offer warranted the award of indemnity costs and whether the rejection was reasonable. The court also needed to assess whether it could determine the reasonableness of the offer or its rejection. The court noted that indemnity costs are rarely awarded, and such an award is only justified in cases of blatant disregard of the court process. The court held that it could not assess the reasonableness of the offer or the rejection, and therefore, it was not appropriate to award indemnity costs.

The court found that the applicant was not entitled to indemnity costs. The court ordered that the applicant pay the respondent's costs of the infringement proceedings concerning claims 1 and 2 of the patent in suit. The court's decision highlights the difficulty in awarding indemnity costs in cases where the court cannot assess the reasonableness of the offer or its rejection. The court's decision also reinforces the principle that indemnity costs are only awarded in cases of blatant disregard of the court process.