Griffiths and Comcare

Case [2007] AATA 1379


Administrative Appeals Tribunal

DECISION AND REASONS FOR DECISION [2007] AATA 1379

ADMINISTRATIVE APPEALS TRIBUNAL      )

)          No A2006/146

GENERAL ADMINISTRATIVE  DIVISION )
Re JOHN GRIFFITHS

Applicant

And

COMCARE

Respondent

DECISION

Tribunal Mr S. Webb, Member

Date29 May 2007

PlaceCanberra

Decision

The Tribunal orders the Respondent to pay the Applicant’s reasonable costs in these proceedings up to and including 23 January 2007 as agreed or taxed.

..........(Signed)...................

Mr S. Webb, Member

CATCHWORDS

COSTS – whether the respondent should pay the applicant’s costs – offer of settlement – Calderbank principles – no costs awarded from the date on which the settlement offer was made

Safety, Rehabilitation and Compensation Act 1988 ss 67

Calderbank v Calderbank [1976] 3 All ER 333

Riley v Comcare (1994) 48 FCR 449

Perry v Comcare [2006] FCA 33

Miller v Australian Telecommunications Commission (1985) 5 FCR 480

Comcare v Labathas (1995) 133 ALR 744

Re Griffiths and Australian Postal Corporation [2006] AATA 965

Re Salters and Telstra Corporation Limited [2003] AATA 1037

Re Hronopoulos and Telstra Corporation Limited [2002] AATA 625

Re Mifsud and Australian Postal Corporation [1999] AATA 782

Smallcombe v Lockyer Investments Company Pty Ltd (1993) 114 ALR

REASONS FOR DECISION

May 2007 Mr S. Webb, Member         

1.      On 22 March 2007 I handed down the decision in this matter.  No orders were made in relation to costs.  The parties were provided seven days in which to make submissions.  Submissions have been filed and the question of orders for costs can now be concluded.

2.      By the decision under review, Comcare determined that Mr Griffiths’ normal weekly earnings (NWE) from 1 August 1994 included a component of 9.766 hours overtime per week.  I decided to vary that determination on the basis that the overtime component of Mr Griffiths’ NWE was 11 hours 8 minutes per week.

3.      On 23 January 2007 the respondent made a written ‘Calderbank’ offer of settlement,[1]  ‘without prejudice save as to costs’.  The terms of the offer included a weekly overtime component of 12 hours 27 minutes and was said to remain open until 8 February 2007.  As the offer was in terms more favourable to the applicant than the outcome he achieved in the proceedings in the Tribunal, the respondent is resisting any award of costs from the date of the settlement offer.  On 6 February 2007, apparently after obtaining legal advice, Mr Coleman responded to the offer of settlement on Mr Griffiths’ behalf, in the negative.

[1] Referring to Calderbank v Calderbank [1976] 3 All ER 333

4.      In Mr Griffiths’ submission, he had good reasons to reject the respondent’s offer of settlement as he had “… good reasons to believe that the AAT would award an amount greater than the respondent’s offer …”[2].  The details of the particular costs in issue are set out in Mr Coleman’s letter dated 10 April 2007 to Sparke Helmore, the respondent’s solicitor.

[2] Applicant’s submissions dated 10 May 2007, p3; applicant’s letter dated 6 February 2007

5. Section 67…

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AGLC
Griffiths and Comcare [2007] AATA 1379
Case
[2007] AATA 1379
Decision Date

CaseChat Overview and Summary

The case of Griffiths and Comcare was heard before the Administrative Appeals Tribunal, with the applicant seeking costs from the respondent. The applicant, Mr Griffiths, had suffered a work-related injury and was seeking compensation under the Safety, Rehabilitation and Compensation Act 1988. The respondent, Comcare, had offered a settlement to the applicant but this offer was rejected. The main issue before the Tribunal was whether the respondent should bear the applicant's costs from the date of the settlement offer. The Tribunal considered the application of the Calderbank principles and relevant case law in determining whether costs should be awarded.

The Tribunal examined the Calderbank principles, which provide that where a party makes an offer of settlement under a recognised procedure, and the offer is not accepted but the ultimate outcome is not more favourable than the offer, the unsuccessful party is not entitled to costs from the date of the offer. The Tribunal noted that the respondent's offer of settlement was made under a recognised procedure, and that the applicant's ultimate outcome was not more favourable than the offer. The Tribunal also considered relevant case law, including Riley v Comcare, Perry v Comcare, Miller v Australian Telecommunications Commission, Comcare v Labathas, Re Griffiths and Australian Postal Corporation, Re Salters and Telstra Corporation Limited, Re Hronopoulos and Telstra Corporation Limited, and Re Mifsud and Australian Postal Corporation.

After considering the Calderbank principles and relevant case law, the Tribunal determined that the respondent should not bear the applicant's costs from the date of the settlement offer. The Tribunal found that the applicant's ultimate outcome was not more favourable than the offer, and that the respondent's offer was made under a recognised procedure. The Tribunal also noted that the applicant had not acted unreasonably in rejecting the offer. Therefore, the Tribunal ordered that the respondent should pay the applicant's reasonable costs in the proceedings up to and including 23 January 2007, as agreed or taxed.

The Tribunal's decision highlights the importance of considering the Calderbank principles and relevant case law when determining whether to award costs in a settlement offer scenario. The Tribunal's reasoning demonstrates a careful consideration of the facts and the law, and provides guidance for future cases involving similar issues. The final orders of the Tribunal reflect this reasoning, and provide a clear outcome for the parties involved.

Orders

Orders of the court

The Tribunal orders the Respondent to pay the Applicant’s reasonable costs in these proceedings up to and including 23 January 2007 as agreed or taxed.

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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