Gray v Hobson (No 2)

The appeal concerned the costs of a trial and an application to vary the default position regarding interest on costs. The parties involved were Dr Gray and Mr Hobson. The dispute arose from a prior trial where an offer of compromise had been made.

The court was required to determine whether the appellant, Dr Gray, was successful on particular issues, thereby justifying setting aside the judgment below and apportioning costs by issue. Further, the court considered whether the period an offer of compromise was open for acceptance was reasonable in the circumstances, and whether adequate reasons existed for ordering interest on costs, thereby varying the default statutory position.

The court reasoned that the offer of compromise made prior to trial was not renewed, and that Dr Gray was successful on certain issues, leading to the judgment below being set aside. Consequently, the court ordered that Mr Hobson pay Dr Gray’s costs of the trial up to and including 1 November 2016 on the ordinary basis, and from 2 November 2016 on the indemnity basis. Dr Gray’s notice of motion filed on 15 March 2018 was otherwise dismissed. Mr Hobson’s notice of motion filed on the same date was also dismissed with costs.