George Pegios v Simon Rez - [Costs]

George Pegios brought an action against Simon Rez, seeking costs on an indemnity basis. The dispute centred around the conduct of the litigation and whether Pegios was entitled to indemnity costs. The matter was heard in the Supreme Court of Victoria. The primary issue before the court was whether Pegios was entitled to indemnity costs following the unsuccessful litigation. In particular, the court needed to determine if a genuine offer of compromise was made by Pegios through a Calderbank letter, and if Rez's conduct warranted the award of indemnity costs.

The court examined the terms of the Calderbank letter and concluded that Pegios did not make a genuine offer of compromise. The terms proposed were not reasonable, and there was no real concession made that would have led to an earlier resolution of the dispute. The court also found that Rez's conduct, while perhaps vexatious, did not rise to the level that would justify indemnity costs. The court held that the Calderbank letter did not constitute a real compromise offer, and therefore, Pegios was not entitled to indemnity costs. The court awarded costs on the standard basis, rejecting the claim for indemnity costs.