Halil v NSW Land and Housing Corporation (No 3)

The NSW Supreme Court considered an application for costs in a matter between Halil and the NSW Land and Housing Corporation. Halil, who was self-represented, had unsuccessfully sued the corporation for various claims. The plaintiff sought an exception to the usual rule that costs follow the event, while the defendant sought indemnity costs based on a "walk-away offer" made in a Calderbank letter. The court had to determine whether the plaintiff could be granted costs despite being unsuccessful and whether the defendant was entitled to indemnity costs due to the walk-away offer.

The court examined the criteria for granting costs to a self-represented litigant, considering whether the case was vexatious, frivolous, or an abuse of process. It also considered the principles governing indemnity costs and the circumstances in which such costs might be awarded. The court assessed the appropriateness of the walk-away offer and its relevance to the award of indemnity costs. It was necessary to balance the plaintiff's right to a fair trial against the defendant's right to protect its interests and resources.

In its decision, the court held that the plaintiff's claims were not vexatious, frivolous, or an abuse of process. However, the plaintiff was not entitled to costs as the litigation had not resulted in any substantial benefit or advancement of the law. Regarding indemnity costs, the court found that the walk-away offer was not unreasonable and that the plaintiff had not accepted it. Consequently, the defendant was granted indemnity costs. The court emphasised the importance of parties considering offers of settlement and the potential consequences of rejecting reasonable offers.

The court ordered the plaintiff to pay the defendant's costs of the application for indemnity costs. The defendant was also to be paid its costs of the proceeding up to the date of the walk-away offer. The plaintiff was ordered to pay the defendant's costs of the proceeding from the date of the walk-away offer to the conclusion of the proceeding.