Cole v Raykir Holdings Pty Ltd (No 2)

The case of Cole v Raykir Holdings Pty Ltd (No 2) involved a dispute between the plaintiffs, Mr and Mrs Cole, and the defendant, Raykir Holdings Pty Ltd, over the sale of a property. The plaintiffs sought a refund of the purchase price of the property as well as damages for the defendant's failure to disclose certain information about the property. The matter was heard in the Supreme Court of New South Wales.

The primary legal issues before the court were whether the plaintiffs' Calderbank offer represented a genuine compromise and whether it was unreasonable for the defendant not to accept the offer. The plaintiffs had made a Calderbank offer to settle the matter for a specified sum, which the defendant declined. The court had to determine if this offer was a genuine attempt at compromise and if the defendant's refusal to accept it was unreasonable.

The court found that the plaintiffs' Calderbank offer was a genuine attempt at compromise, as it was made in good faith and represented a reasonable settlement of the matter. The court also found that it was unreasonable for the defendant not to accept the offer, as the plaintiffs had a strong case and the risk of not accepting the offer was high. As a result, the court awarded indemnity costs to the plaintiffs, departing from the usual rule that costs follow the event. The court found that the defendant's conduct in refusing the Calderbank offer was vexatious and oppressive, justifying the award of indemnity costs.

The final orders of the court included the award of indemnity costs to the plaintiffs, as well as an order that the defendant pay the plaintiffs' costs of the proceeding on the standard basis. The court also ordered that the matter be listed for further directions to determine the quantum of the indemnity costs to be paid by the defendant.