Dunbrae Pty Ltd v Armani Restaurant Pty Ltd (No. 3)

In Dunbrae Pty Ltd v Armani Restaurant Pty Ltd (No. 3), the dispute arose between two businesses over alleged breaches of contract and misleading or deceptive conduct under the Australian Consumer Law (ACL). The matter was heard in the Local Court of New South Wales. Dunbrae Pty Ltd, the Plaintiff, sought damages and other remedies against Armani Restaurant Pty Ltd, the Defendant, for alleged breaches of a lease agreement and misleading or deceptive conduct. The Defendant counterclaimed for damages, also under the ACL, alleging that the Plaintiff had engaged in misleading or deceptive conduct.

The central legal issues before the court were whether the Plaintiff had breached the lease agreement and engaged in misleading or deceptive conduct, and whether the Defendant had likewise breached the lease agreement and engaged in misleading or deceptive conduct. Furthermore, the court needed to determine the appropriate allocation of costs between the parties, given the outcome of the proceedings.

The court found that neither party had succeeded on any significant claims, leading to a comprehensive analysis of the conduct of the proceedings. It concluded that both parties had made unsuccessful offers under Calderbank, which are offers to settle on terms unfavourable to the offeree but more favourable than what might be awarded at trial. Given the nature of the proceedings, which were initiated and conducted in the Local Court, the court found that it was warranted for each party to bear their own costs. However, the court maintained all preceding costs orders and directed that the security paid by the Defendant/Cross-Claimant on 3 June 2021 be paid out to the Defendant/Cross-Claimant.

The final orders of the court required each party to bear their own costs of the proceedings, with the exception that all preceding costs orders were to be maintained. Additionally, the court ordered that the security paid by the Defendant/Cross-Claimant on 3 June 2021 be paid out to the Defendant/Cross-Claimant.