Global Alliance Network Pty Ltd v Sensis Pty Ltd (No 2)

Global Alliance Network Pty Ltd (the appellant) and Sensis Pty Ltd (the respondent) were parties to litigation concerning a dispute that proceeded to the Court of Appeal of New South Wales. The core of the dispute involved the appellant's claim and the respondent's cross-claim, with a significant focus on the costs awarded in the proceedings.

The primary legal issues before the Court of Appeal concerned the exercise of discretion regarding indemnity costs. Specifically, the court had to determine whether the appellant had acted unreasonably in rejecting an offer of compromise, particularly in light of the appellant's perceived strong case. Further issues related to indemnity costs on the cross-claim, the effect of an offer of compromise lacking a time limit, and the period for which indemnity costs should apply, especially when an offer was not renewed after the trial.

The Court of Appeal reasoned that the appellant's conduct in rejecting the offer of compromise, despite having a strong case, warranted the award of indemnity costs from a specific date. The court applied principles governing the exercise of discretion in awarding indemnity costs, considering the reasonableness of the parties' actions in light of settlement offers. The court also addressed the implications of an offer of compromise that did not specify an expiry date and the consequences of such an offer not being renewed post-trial.

The court ordered that the judgment of 27 July 2007 be amended to include an order for indemnity costs from 17 September 2005 concerning the District Court proceedings only. Additionally, the appellant was ordered to pay the respondent's costs of the application to vary the earlier orders.