El-Wasfi v NSW; Kassas v NSW (No 2)

In *El-Wasfi v NSW; Kassas v NSW (No 2)*, the New South Wales Court of Appeal considered appeals concerning costs orders made in proceedings involving the plaintiffs and the State of New South Wales. The dispute revolved around the reasonableness of rejecting an offer of compromise and the impact of a general costs order on interlocutory costs.

The Court was required to determine whether it was unreasonable for the plaintiffs to reject a "walk-away" offer of compromise made by the defendant. Additionally, the Court had to consider the effect of a general order as to the costs of the proceedings on prior interlocutory costs orders.

The Court reasoned that the offer of compromise was a genuine "walk-away" offer, meaning it was designed to resolve all aspects of the dispute without further litigation. The plaintiffs' rejection of this offer, in light of the subsequent outcome of the proceedings, was deemed unreasonable. Consequently, the Court applied the principle that a party who unreasonably rejects a reasonable offer of compromise may be ordered to pay the costs incurred by the other party from the date of the offer.

The Court ordered that in Mr El-Wasfi’s appeal, the appellant was to pay the respondent’s costs. In the appeal brought by Messrs Kassas, Pound and Ashley Saad, the appellants were ordered to pay the State’s costs. In the original proceedings, the plaintiffs were ordered to pay the defendant’s costs on an ordinary basis until 15 January 2014, and on an indemnity basis thereafter.