CSR Limited & v Thompson; Thompson v CSR Limited & Anor (No 2)

In *CSR Limited & Thompson; Thompson v CSR Limited & Anor (No 2)*, the dispute concerned the costs of an appeal before the Supreme Court of New South Wales. The primary issue revolved around whether the costs of the appeal should be awarded on an indemnity basis, following the rejection of a pre-trial offer made by the appellants.

The court was required to determine whether the pre-trial offer constituted a true compromise of the proceedings, and consequently, whether the appellants should be ordered to pay the respondent's costs of the appeal on an indemnity basis from the date the offer was made. The court also considered the costs of an application for leave to cross-appeal.

The court found that the offer made by the appellants was not a true compromise, as it did not reflect a genuine attempt to settle the dispute. Applying the principles governing indemnity costs, particularly where an action is considered futile, the court concluded that the circumstances warranted an award of indemnity costs against the appellants for the appeal.

Consequently, the court ordered that the appellants pay the respondent's costs of the appeal on an indemnity basis from 3 June 2003. The respondent was ordered to pay the appellants' costs of the application for leave to cross-appeal.