Globaltech Pty Ltd v Pareek

Case [2006] WASC 30 (S)


GLOBALTECH PTY LTD -v- PAREEK [2006] WASC 30 (S)



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2006] WASC 30 (S)
Case No:CIV:2686/200027 OCTOBER 2003
Coram:JOHNSON J23/02/06
18/05/06
15Judgment Part:1 of 1
Result: Application for indemnity costs order refused
B
PDF Version
Parties:GLOBALTECH PTY LTD (ACN 086 012 393)
MAHAVEER PAREEK
KHALED MUFID YOUSEF HEJLEH
JOHAN ANWAR
MICHAEL ALLAN KLASS

Catchwords:

Indemnity costs ­ Calderbank offer to compromise ­ Requirement of offer to compromise ­ When unreasonable to refuse offer

Legislation:

Supreme Court Rules

Case References:

Australian Competition and Consumer Commission v Universal Music Australia Pty Ltd (No 2) [2002] FCA 192
Brymount Pty Ltd t/a Watson Toyota v Cummins [2005] NSWCA 69
Calderbank v Calderbank [1975] 3 All ER 333
Colgate-Palmolive Company & Anor v Cussons Pty Limited (1993) 46 FCR 225
Cutts v Head [1984] Ch 290
Dobb v Hacket (1993) 10 WAR 532
Duvall v Godfrey Virtue & Co (a firm) [2001] WASCA 163
Flotilla Nominees Pty Ltd v Western Australian Land Authority & Anor [2003] WASC 122
Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Pty Ltd & Ors (1988) 81 ALR 397
Fyna Foods Australia Pty Ltd v Cobannah Holdings Pty Ltd (No 2) [2004] FCA 1212
Grbavac v Hart [1997] 1 VR 154
Hobartville Stud Pty Ltd v Union Insurance Co Ltd (1991) 25 NSWLR 358
Jones & Anor v Millward & Anor [2005] QCA 76
Leichhardt Municipal Council v Green [2004] NSWCA 341
McKerlie v State of New South Wales (No 2) [2000] NSWSC 1159
Messiter v Hutchinson (1987) 10 NSWLR 525
MGICA (1992) Ltd v Kenny & Good Pty Ltd & Anor (No 4) (1996) 140 ALR 707
Quirk v Bawden (1992) 112 ACTR 1
Townsend & Ors v Collova & Ors (S) [2005] WASC 4
Vasram v AMP Life Ltd [2002] FCA 1286

Nil

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CIVIL
CITATION : GLOBALTECH PTY LTD -v- PAREEK [2006] WASC 30 (S) CORAM : JOHNSON J HEARD : 27 OCTOBER 2003 DELIVERED : 23 FEBRUARY 2006 SUPPLEMENTARY
DECISION : 18 MAY 2006 FILE NO/S : CIV 2686 of 2000 BETWEEN : GLOBALTECH PTY LTD (ACN 086 012 393)
    Plaintiff

    AND

    MAHAVEER PAREEK
    Defendant

    (BY ORIGINAL ACTION)


    MAHAVEER PAREEK
    Plaintiff

    AND

    GLOBALTECH PTY LTD (ACN 086 012 393)
    First Defendant

    KHALED MUFID YOUSEF HEJLEH
    Second Defendant

    JOHAN ANWAR
    Third Defendant
(Page 2)

    MICHAEL ALLAN KLASS
    Fourth Defendant

    (BY COUNTERCLAIM)

Catchwords:

Indemnity costs ­ Calderbank offer to compromise ­ Requirement of offer to compromise ­ When unreasonable to refuse offer

Legislation:

Supreme Court Rules

Result:

Application for indemnity costs order refused

Category: B


Representation:

Original Action


Counsel:


    Plaintiff : Mr T J Palmer
    Defendant : Ms S J Monck

Solicitors:

    Plaintiff : Clayton Utz
    Defendant : Dwyer Durack

(Page 3)



Counterclaim

Counsel:


    Plaintiff : Ms S J Monck
    First Defendant : Mr T J Palmer
    Second Defendant : Mr T J Palmer
    Third Defendant…

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Globaltech Pty Ltd v Pareek [2006] WASC 30 (S)
Case
[2006] WASC 30 (S)
Decision Date

CaseChat Overview and Summary

The case involved Globaltech Pty Ltd, the plaintiff, and Pareek, the defendant. The dispute centred around the costs of a legal proceeding and whether the plaintiff was entitled to indemnity costs following a failed Calderbank offer. The matter was heard in the Supreme Court of Queensland. The plaintiff sought indemnity costs from the defendant after a failed attempt to settle the case through a Calderbank offer, which is a conditional offer to settle a claim made without admission of liability. The defendant had refused the offer, which the plaintiff argued was unreasonable, entitling them to indemnity costs.

The primary legal issue before the court was whether the defendant's refusal of the Calderbank offer was unreasonable, thereby justifying an order for indemnity costs. The court needed to determine the circumstances under which a party may be held to have unreasonably refused an offer to compromise. The plaintiff argued that the offer was reasonable and that the refusal was unjustifiable, warranting indemnity costs. The defendant contended that the offer was unreasonable, and therefore, the plaintiff was not entitled to such costs.

The court examined the nature of the Calderbank offer and the surrounding circumstances to decide if the refusal was unreasonable. It found that the offer was not unreasonable and that the defendant had legitimate reasons for rejecting it. The court held that there was no basis to conclude that it was unreasonable to refuse the offer. Consequently, the plaintiff's application for indemnity costs was refused. The court's decision was based on the detailed analysis of the offer's terms and the context in which it was made.

Orders

Orders of the court

Application for indemnity costs order refused

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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