Coles Supermarkets Australia Pty Ltd v Taylor (No 2)

Coles Supermarkets Australia Pty Ltd appealed an order made by the District Court of New South Wales. The dispute concerned the application of costs rules following an offer of compromise.

The primary legal issue before the Court of Appeal was whether the District Court Rules 1973, specifically Part 39A, Rule 25(4), which deals with costs when a plaintiff achieves a better outcome than an offer of compromise, applied to the costs of an appeal.

The Court of Appeal held that Rule 25(4) of the District Court Rules 1973 was not applicable to the costs of an appeal. Instead, the costs of the appeal were governed by section 76(1) of the Supreme Court Act 1970. The court lifted the stay that had been placed on the costs order.