Clavel v Savage (No 4)

The case of Clavel v Savage (No 4) involved a dispute between the plaintiff and two defendants, focusing on liability for intentional infliction of emotional distress. The matter was heard in the Supreme Court of Victoria. The court was required to determine the extent of liability and the quantum of damages against the first and second defendants, based on the findings made in an earlier judgment. Additionally, the court had to address the issue of costs, particularly in relation to an offer of compromise under the Civil Procedure Act 2010 (Vic) and the subsequent Calderbank letter.

The primary legal issues centred around the application of the principles of intentional infliction of emotional distress to the specific facts of the case, as well as the proper assessment of costs in light of an offer of compromise. The court had to consider whether the first and second defendants were liable for the plaintiff's emotional distress, and if so, to what extent. Furthermore, the court needed to evaluate whether the offer of compromise was sufficient to warrant a costs order, or whether the subsequent Calderbank letter could provide a basis for indemnity costs.

In its reasoning, the court held that the first defendant was liable for the plaintiff's emotional distress, but the second defendant was not. The court found that the first defendant's conduct was extreme and outrageous, going beyond all bounds of decency, and intentionally causing severe emotional distress to the plaintiff. Regarding costs, the court determined that while the initial offer of compromise was insufficient, the subsequent Calderbank letter provided a basis for indemnity costs. The court awarded costs on an indemnity basis, taking into account the Calderbank letter and the overall conduct of the parties.

The final orders of the court included a determination of liability for the first defendant, with damages to be assessed, and no liability for the second defendant. The court also ordered that costs be paid on an indemnity basis, reflecting the Calderbank letter and the conduct of the parties throughout the proceedings.