Chester v Cowin (No 2)

The case of Chester v Cowin (No 2) involved a dispute between the plaintiffs, the children of the deceased, and the defendant, the widow of the deceased. The children sought family provision orders from the estate of their father, which the widow opposed. The matter was heard in the Supreme Court of New South Wales. The central legal issues revolved around the assessment of costs, specifically whether the plaintiffs' rejection of a compromise offer was unreasonable, and the nature of the family provision orders that should be granted.

The court had to determine whether the plaintiffs' rejection of a compromise offer made by the defendant was unreasonable under the relevant provisions of the Uniform Civil Procedure Rules. The plaintiffs had rejected a Calderbank offer, which was an offer to settle that included a statement that if the offer was not accepted and the party making the offer was not successful, they would not be liable for the other party's costs. The court considered whether the rejection was unreasonable and whether it warranted an order for the plaintiffs to pay the defendant's costs.

In delivering the judgment, the court held that the plaintiffs' rejection of the compromise offer was unreasonable. The court found that the plaintiffs had not acted reasonably in rejecting the offer, which could have resolved the matter and potentially saved costs. The court ordered the plaintiffs to pay the defendant's costs of the proceeding, as the rejection of the offer was deemed unreasonable. Regarding the family provision orders, the court granted orders for the plaintiffs to be provided with a sum of money from the estate and the right to occupy the family home until the youngest child finished school.

The final orders of the court included a direction that the plaintiffs pay the defendant's costs of the proceeding and the aforementioned family provision orders. This decision highlights the importance of considering the implications of rejecting a compromise offer and the potential consequences in terms of costs.