In the matter of Black Tie Holdings Pty Ltd (No 2)

The case involved Black Tie Holdings Pty Ltd, which was the subject of a statutory demand. The demand was issued in relation to a debt owed by the company. The dispute was heard in the Federal Circuit Court. The defendant, Black Tie Holdings, sought to have the statutory demand set aside and made an application in this regard. Additionally, the defendant made a Calderbank offer to settle the proceedings by having the statutory demand set aside without any order as to costs.

The legal issues before the court centred on the validity of the Calderbank offer and the circumstances under which costs should be awarded. Specifically, the court needed to determine whether the defendant's offer was a genuine attempt to resolve the dispute without incurring further costs and whether the plaintiff was entitled to costs from the date of the offer or if a discount should be applied due to a service issue.

The court held that the defendant's offer was a genuine attempt to resolve the dispute. However, because the offer did not result in a resolution of the proceedings, the court was entitled to order costs. The court considered the service issue raised by the defendant and determined that it warranted a discount on the costs. Nevertheless, because the defendant did not resolve the issue promptly, the court ordered that the plaintiff be awarded indemnity costs from the date of the offer. The court concluded that the application to set aside the statutory demand was dismissed, and costs were ordered accordingly.