DXC Connect Pty Ltd v Deibe

In DXC Connect Pty Ltd v Deibe, the Federal Court addressed a dispute involving multiple parties, including DXC Connect, the Plaintiff, and various Defendants. The Plaintiff sought damages for breach of contract and other related claims. The central issue before the Court was the appropriate allocation of costs in the context of interlocutory proceedings, particularly considering the potential for reducing the Plaintiff’s ultimate loss. The Court also needed to determine if it was unreasonable for the Plaintiff to reject a Calderbank offer made by one of the Defendants.

The Court found that while interlocutory relief might reduce the Plaintiff's ultimate loss, the principle that costs follow the event should not be lightly departed from. The Plaintiff’s costs in the cause were appropriate given the potential for significant reduction in damages. However, the Court observed that the Plaintiff had been partly unsuccessful in its proceedings, which warranted a reduction in the costs order. The Court further examined the reasonableness of the Plaintiff's refusal to accept a Calderbank offer from the Sixth Defendant, concluding that it was not unreasonable for the Plaintiff to reject the offer given the circumstances.

Ultimately, the Court made an order for costs in favour of the Plaintiff but reduced the amount due to the partial success in the proceedings. The Court also ruled that the Plaintiff was not unreasonable in rejecting the Calderbank offer, considering the strategic implications of the litigation at that stage.