DISTRICT COURT OF QUEENSLAND
CITATION:
Gobbert & Ors v Elders Rural Finance Services Ltd & Anor (No 2) [2017] QDC 234
PARTIES:
JASON STANLEY GOBBERT, ALEXANDER DEAN GOBBERT AND STANLEY MORTON GOBBERT trading as GOBBERT BROS
(Plaintiffs)v
ELDERS RURAL SERVICES AUSTRALIA LIMITED ACN 004 045 121
(First Defendant)and
RURAL BANK LIMITED ACN 083 938 416
(Second Defendant)FILE NO/S:
626 of 2016
DIVISION:
Civil
PROCEEDING:
Application for costs
ORIGINATING COURT:
District Court, Brisbane
DELIVERED ON:
15 September 2017
DELIVERED AT:
Brisbane
HEARING DATE:
On the papers
JUDGE:
Kefford DCJ
ORDER:
The plaintiffs are ordered to pay the costs of each of the first and second defendants to be assessed on the standard basis up to and including 20 February 2017, and on the indemnity basis thereafter.
CATCHWORDS:
PROCEDURE – COSTS – INDEMNITY COSTS – OFFER TO SETTLE – where the first and second defendants made an offer to settle prior to trial – where the plaintiffs did not accept the offer – where the plaintiffs’ claim was dismissed – where the defendants seek their costs on the indemnity basis, subject to their offer – whether the plaintiffs’ refusal of the defendants’ offer was unreasonable
LEGISLATION:
Uniform Civil Procedure Rules 1999 (Qld), r 361, r 681, r 703
CASES:
Bert & Ors v Red 5 Limited & Anor [2017] QSC 8, followed
Hazeldene’s Chicken Farm Pty Ltd v Victorian WorkCover Authority (No 2) [2005] VSCA 298; (2005) 13 VR 435, considered
J & D Rigging Pty Ltd v Agripower Australia Ltd [2014] QCA 23, applied
Mizikovsky v Queensland Television Limited & Ors [2013] QCA 68; [2014] 1 Qd R 197, applied
COUNSEL:
D J Pyle with S Forder for the Plaintiffs
N Ferrett for the First Defendant
SOLICITORS:
Shine Lawyers for the Plaintiffs
Crawford Legal for the First Defendant
Dibbs Barker for the Second Defendant
Background
On 16 February 2017, the Plaintiffs filed a Claim and Statement of Claim in this matter. The Plaintiffs’ case was, in effect, that Jason Stanley Gobbert (on behalf of the Plaintiffs) relied on representations made by Paul Nelson (on behalf of the First Defendant and/or Second Defendant) to the effect that finance had been, or would be, approved prior to Mr Gobbert making the winning bid of $6.8 million at an auction to purchase a rural holding. The Plaintiffs claimed those representations were misleading or deceptive within the meaning of s 12DA of the Australian Securities and Investment Commission Act 2001 (Cth).
The trial with respect to this action was heard on 22 to 25 May 2017, with oral submissions on 17 August 2017.
On 30 August 2017 I dismissed the Plaintiffs claim and ordered that the parties file and serve written submissions as to costs by 6 September 2017. That has been done by all parties. The Plaintiffs also filed reply submissions.
Offer to settle
On or about 20 February 2017, the First Defendant and Second Defendant made a joint offer to the Plaintiffs under Part 5…
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- Case
- [2017] QDC 234
- Decision Date
CaseChat Overview and Summary
The court examined the nature of the offer and the circumstances under which it was made. It considered the terms of the offer, the timing in relation to the trial, and the plaintiffs' reasons for rejecting the offer. The court assessed whether the offer was reasonable and whether the plaintiffs' refusal was justifiable under the circumstances. The analysis involved a detailed look at the settlement offer's terms and the plaintiffs' response, weighing the merits of accepting versus rejecting the offer. Ultimately, the court found that the plaintiffs' refusal to accept the offer was unreasonable.
Consequently, the court ruled that the plaintiffs must pay the defendants' costs. The costs were to be assessed on the standard basis up until 20 February 2017, and on the indemnity basis from that date onwards. The decision underscored the importance of considering settlement offers carefully, as unreasonable refusals can lead to significant financial consequences for the rejecting party.
Orders
Orders of the court
The plaintiffs are ordered to pay the costs of each of the first and second defendants to be assessed on the standard basis up to and including 20 February 2017, and on the indemnity basis thereafter.
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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