Daebo International Shipping Co Ltd v The Ship Go Star (No 2)

In the case of Daebo International Shipping Co Ltd v The Ship Go Star (No 2), the court was required to address issues of liability and costs following an appeal against a primary judgment. The owners of the ship, Go Star, had terminated a head charter with Daebo International Shipping Co Ltd, leading to a dispute over the value of bunkers on board and other related claims. The primary issues involved the legality of the termination and the quantum of damages due to Daebo. The appeal was heard on the basis of both the trial and the appeal having distinct issues, which led to each party succeeding on one of the principal issues. Daebo sought an indemnity costs order for the proceedings below, while the owners argued for a party and party costs order.

The court examined the nature of the claims and the reasonable pursuit of each by Daebo. It was determined that both claims involved the same subject matter and required similar evidence, thus it was inappropriate to divide the costs based on the parties’ successes on different issues. The court further found that Daebo's offer of compromise, which was not accepted by the owners, was not a "Calderbank" offer but rather one made under the Federal Court Rules with specific costs consequences. Given the appeal's outcome, the owners were found to be liable for a greater amount than initially awarded, warranting an indemnity costs order for the proceedings below.

The court allowed the appeal and set aside the primary judge's orders, substituting Daebo International Shipping Co Ltd as the plaintiff. Judgment was entered in favour of Daebo for the specified amount, with interest accruing from the date of the primary judgment. The costs order required the defendant to pay the plaintiff’s costs up to a certain date on a party and party basis, and thereafter on an indemnity basis. Additionally, the court ordered that unless extended by a judge, the moneys held as security were to be paid out to the appellant after a specified date.