CJZ Pty Ltd v Giant Dwarf Pty Ltd; CJZ Pty Ltd v Morrow (No 2)

In *CJZ Pty Ltd v Giant Dwarf Pty Ltd; CJZ Pty Ltd v Morrow (No 2)*, the applicants sought orders for costs of an appeal and cross-appeal, as well as costs related to an amended notice of motion. The dispute concerned the entitlement to indemnity costs based on two offers of compromise made by the applicants, one before retaining legal representation and the other before the appeal hearing. The court was also required to consider an order for restitution, specifically the repayment of a judgment sum.

The primary legal issues before the court were whether the applicants were entitled to indemnity costs given the offers of compromise, and whether the respondent had unreasonably failed to accept these offers. The court also had to determine the appropriate basis for awarding costs of the appeal and cross-appeal, and to make consequential orders regarding the repayment of a judgment sum.

The Court of Appeal, comprising Ward P, Mitchelmore and Adamson JJA, varied the previous costs orders. The court found that the applicants were entitled to indemnity costs from 7 April 2023, indicating that the offers of compromise were genuine and that the respondent had unreasonably failed to accept them. The court also ordered the respondent to pay the applicants’ costs of the appeal and cross-appeal on the ordinary basis up to 6 April 2023, and on an indemnity basis thereafter. Further orders were made for the respondent to pay the applicants’ costs of an amended notice of motion and for the restitution of a judgment sum paid by the defendants to the plaintiff.