Chatham v Coral Park Pre-Training & Breaking Pty Ltd (No 2)

The case before the court involved a dispute between Chatham and Coral Park Pre-Training & Breaking Pty Ltd, with Chatham as the plaintiff and Coral Park as the defendant. The matter pertained to whether the court should order costs on a standard basis following the defendant’s offer of compromise during the proceedings. This decision followed on from Chatham v Coral Park Pre-Training & Breaking Pty Ltd (No 1) [2021] VCC 890, where the court had already made findings regarding the defendant’s liability and entitlement to damages.

The primary legal issue before the court was whether the defendant's offer of compromise was a genuine compromise under the Supreme Court (General Civil Procedure) Rules 2015 (Vic) r 26.08. The court needed to determine whether the offer met the criteria for a genuine compromise as established in Stevens v Spotless Management Services Pty Ltd (No 2) [2016] VSCA 311 and Gamboni v Bendigo and Adelaide Bank Ltd [2013] VSCA 282. Specifically, the court had to assess if the offer was made in good faith and if it was reasonable in the circumstances. Additionally, the court needed to consider whether, if the offer was genuine, it should order costs payable on a standard basis after the date of the offer.

The court found that the defendant's offer was a genuine compromise under the relevant rules. The offer was made in good faith and was reasonable given the circumstances. Consequently, the court exercised its discretion to order that costs were payable on a standard basis from the date of the offer. This decision aligns with the principles established in the referenced cases, where the courts have emphasised the importance of considering the overall fairness and reasonableness of the compromise offer.