Fordyce v Fordham (No 2)

Case [2006] NSWCA 362



New South Wales


Court of Appeal


CITATION: Fordyce v Fordham & Anor (No 2) [2006] NSWCA 362
HEARING DATE(S): On written submissions.
 
JUDGMENT DATE: 

15 December 2006
JUDGMENT OF: Beazley JA at 1; Santow JA at 2; McColl JA at 3
DECISION: Application dismissed with costs.
CATCHWORDS: PRACTICE AND PROCEDURE - costs - unaccepted Calderbank offer - whether should displace order that each party pay their own costs - HELD - no. (ND)
LEGISLATION CITED: District Court Rules 1973
Uniform Civil Procedure Rules 2005
CASES CITED: Calderbank v Calderbank [1976] Fam 93
Fordyce v Fordham & Anor [2006] NSWCA 274
Jones v Bradley ( No 2) NSWCA 258
Leichhardt Municipal Council v Green [2004] NSWCA 341
SMEC Testing Services Pty Ltd v Campbelltown City Council [2000] NSWCA 323
South Eastern Sydney Area Health Service v King [2006] NSWCA 2
PARTIES: Louise Aileen Fordyce - Claimant
Gary Shaun Fordham - 1st Opponent
Narelle Jane Fordham - 2nd Opponent
FILE NUMBER(S): CA 40044 of 2006
COUNSEL: M Holmes QC and C Bova - Claimant
J Simpkins SC and J Johnson - Opponents
SOLICITORS: PMF Legal - Claimant
Woolf Associates - Opponents
LOWER COURT JURISDICTION: Supreme Court - Equity Division
LOWER COURT FILE NUMBER(S): 4290/05
LOWER COURT JUDICIAL OFFICER: Nicholas J
LOWER COURT DATE OF DECISION: 22 December 2005




                          CA 40044/06
                          SC 4290/05

                          BEAZLEY JA
                          SANTOW JA
                          McCOLL JA

                          Friday 15 December 2006
FORDYCE v FORDHAM & ANOR (No 2)
Judgment

1 BEAZLEY JA: I agree with McColl JA.

2 SANTOW JA: I agree with McColl JA

3 McCOLL JA: The Court delivered judgment in this matter on 5 October 2006. The appeal was allowed and the orders made by Nicholas J on 22 December 2005 that the appellant pay the costs of proceedings brought in the Equity Division of this Court by the respondents was set aside. In lieu the Court ordered that each party pay their own costs of the Supreme Court proceedings as well as their costs of appeal: Fordyce v Fordham & Anor [2006] NSWCA 274 (the “first judgment”).

4 At the conclusion of the argument Mr Simpkins of Senior Counsel, who appeared with Mr J Johnson for the respondents, raised the question that, if the appeal was upheld and this Court re-exercised the costs discretion, it should not make an order concerning the costs of the argument before the primary judge on 23 November 2005 as the outcome of that day may be affected by correspondence. While the Court indicated its view that its costs should apply to the costs of 23 November 2005 the parties were given leave to file and serve written submissions limited to two pages concerning the costs of that day.

5 The parties have exercised that leave. This judgment deals with the resolution of the respondents’ claim that the appellant should be ordered to pay their costs of 23 November 2005 on the basis that she had unreasonably rejected a Calderbank offer communicated by Mr Woolf, the respondents’ solicitor on 6 September 2005.

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Fordyce v Fordham (No 2) [2006] NSWCA 362
Case
[2006] NSWCA 362
Decision Date

CaseChat Overview and Summary

In *Fordyce v Fordham (No 2)*, the New South Wales Court of Appeal considered an application for costs following an unaccepted Calderbank offer. The dispute concerned whether the existence of this offer should displace an earlier order that each party bear their own costs.

The central legal issue before the Court of Appeal was the proper application of the principles governing costs when a Calderbank offer has been made and rejected. Specifically, the court had to determine whether the offer, which was more favourable to the applicant than the final judgment, warranted a departure from the usual order that each party pay their own costs.

The Court of Appeal reasoned that the purpose of a Calderbank offer is to encourage settlement by providing a basis for a costs order in favour of the offeror if the offeree fails to achieve a better outcome at trial. However, the court also recognised that the discretion to award costs remains with the court, and a Calderbank offer is only one factor to be considered. In this instance, the court found that the circumstances did not justify disturbing the initial costs order. The application for costs was therefore dismissed, with the applicant ordered to pay the respondent's costs.

Orders

Orders of the court

Application dismissed with costs.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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