Chint Australasia Pty Ltd v Cosmoluce Pty Ltd

The case of Chint Australasia Pty Ltd v Cosmoluce Pty Ltd concerned a dispute between the two companies over a contract for the supply of electrical equipment. The proceedings were heard in the Federal Court of Australia. The primary issue before the Court was whether a Calderbank offer, made by the defendant, should result in an order for costs against the plaintiff. The plaintiff argued that the defendant's refusal to accept the offer was unreasonable and sought an order for costs in accordance with the Calderbank principle.

The Court addressed the principles governing Calderbank offers, particularly focusing on the timing of the offer and the defendant's response. The first offer was made before the plaintiff had served critical evidence, which the plaintiff argued made the offer unreasonable. The Court noted that an offer made before all material evidence is available may not necessarily be unreasonable. Furthermore, the second offer was open for acceptance for only one week, which the Court considered a short period. The Court also highlighted that the Calderbank letters explicitly included an offer for costs, which influenced the assessment of reasonableness.

In conclusion, the Court held that a Calderbank offer does not automatically result in an order for costs. The plaintiff bears the onus of proving that the defendant's refusal to accept the offer was unreasonable. Given the timing of the offer and the brevity of the acceptance period, the Court found the defendant's refusal to be reasonable. Consequently, the plaintiff's application for costs was dismissed. The Court did not make any specific orders for costs in favour of either party.