CSR Limited v Clydesdale

In *CSR Limited v Clydesdale*, the New South Wales Court of Appeal considered an appeal concerning the award of costs following an offer of compromise. The dispute arose from a judgment where the respondent, Clydesdale, was awarded a sum of money against the appellant, CSR Limited. The core of the appeal related to the application of costs rules following an offer of compromise made by the respondent.

The Court of Appeal was required to determine whether the offer of compromise made by the respondent was more favourable than the substituted verdict ultimately awarded to the respondent. Specifically, the court had to assess if the amount offered was greater than the amount of the substituted verdict, taking into account the verdict plus any applicable interest at the time the offer was made. This determination was crucial for deciding the allocation of costs between the parties.

The Court reasoned that the offer of compromise, when assessed against the substituted verdict and accrued interest, was indeed more favourable to the appellant than the final judgment. Consequently, the Court allowed the appeal in part, substituting the original award with a lesser sum of $974,240.70. The Court ordered that the respondent pay the appellant's costs of the appeal up to a specific time on 21 May 2003, with the appellant to pay the respondent's costs thereafter on an indemnity basis.