Hood v Down Under Enterprises International Pty Limited (No 2)

The case of Hood v Down Under Enterprises International Pty Limited (No 2) involved the appellant, Hood, and the respondent, Down Under Enterprises International Pty Limited. The dispute arose from a cross-claim and a subsequent appeal relating to the costs incurred during the litigation. The matter was heard in the Full Court of the Federal Court of Australia.

The legal issues before the court centred on the appropriateness of the costs order made in relation to the cross-claim. Specifically, the court needed to determine whether it was unreasonable for Hood to have failed to accept a Calderbank offer made by Down Under Enterprises, and how to apportion the costs of the appeal given that each party had been successful on one of the two distinct issues in the cross-claim. The court was tasked with ensuring that the costs order was fair and just, taking into account the outcomes of the appeal.

In delivering the judgment, the court first addressed the reasonableness of Hood's failure to accept the Calderbank offer. The court found that it was not unreasonable for Hood to have declined the offer, considering the circumstances and the merits of the case. Regarding the costs of the appeal, the court decided that an appropriate order should be made for Hood to pay the respondent's costs on a party/party basis, as per the agreement or taxation of those costs. The court vacated the previous order that had been made by the Full Court on 4 May 2022 and substituted it with the new order regarding the costs.

The final orders of the court mandated that the previously made order be vacated and that Hood pay the respondent's costs of the appeal on a party/party basis, in accordance with the agreed or taxed costs. These orders were to be entered in compliance with Rule 39.32 of the Federal Court Rules 2011.