Collier v Country Women's Association of NSW (No 2)

In the matter of Collier v Country Women's Association of NSW (No 2), the court was tasked with determining the appropriate costs order in defamation proceedings, where the plaintiff had unreasonably refused to accept the defendant's offer of settlement. The plaintiff, Collier, had sued the defendant, Country Women's Association of NSW, for defamation. The case was complicated by subsequent proceedings in equity, where Collier sought to set aside certain property transactions. The legal issues before the court were whether it was in the interests of justice to order Collier to pay the defendant's costs on an indemnity basis for the defamation proceedings, given her unreasonable refusal to accept the defendant's settlement offer, and if such an order should extend to the equity proceedings.

The court considered the principles governing costs in defamation cases, particularly the circumstances under which a plaintiff who unreasonably fails to accept a defendant's offer of settlement should be ordered to pay costs on an indemnity basis. The court noted that Collier had not provided any satisfactory explanation for her refusal to accept the settlement offer, and that her conduct in the defamation proceedings was unreasonable. Given the lack of justification for her refusal and the potential deterrence effect of such an order on future litigants, the court held that it was in the interests of justice to order Collier to pay the defendant's costs of the defamation proceedings on an indemnity basis. Furthermore, since the refusal to accept the offer had ramifications for the equity proceedings, the court deemed it appropriate that the order also cover the costs of the equity proceedings from the date of the offers.

Consequently, the court made a comprehensive costs order, requiring Collier to pay the defendant's costs of both the defamation and equity proceedings on an indemnity basis, starting from the date the settlement offer was made. This decision underscores the importance of litigants considering settlement offers seriously and highlights the consequences of unreasonable refusals in legal proceedings.