In the matter of Featherston Resources Limited (Receiver and Manager Appointed) (Administrators Appointed) (New Zealand Company Number 887809) (No 2)

Featherston Resources Limited, an Australian company with a New Zealand branch, faced proceedings where receivers and managers, as well as administrators, were appointed. The dispute pertained to the recovery of costs under the Corporations Act, particularly focusing on the terms of a Calderbank offer and the implications of costs being paid on an indemnity basis. The court had to determine whether the plaintiff was entitled to costs on an indemnity basis when a Calderbank offer was not made in accordance with the relevant rules and was more favourable than the outcome at trial. Additionally, the court had to consider whether to defer making a costs order due to potential foreign litigation.

The central legal issues were whether the plaintiff was entitled to indemnity costs despite the procedural irregularity in the Calderbank offer and whether the court should defer making a costs order in light of possible ongoing foreign proceedings. The court needed to balance the statutory provisions on indemnity costs with the procedural requirements for making Calderbank offers and the potential impact of foreign litigation on the final costs order.

The court ruled that the plaintiff was not entitled to indemnity costs because the Calderbank offer was not made in accordance with the relevant rules. The court found that the procedural irregularity precluded the plaintiff from recovering costs on an indemnity basis. In relation to the deferral of costs, the court considered the potential impact of foreign litigation on the final costs order and decided to defer making a costs order. The court concluded that deferring the costs order would allow for a comprehensive assessment of all relevant proceedings and costs, thereby ensuring a fair outcome.

The final orders of the court were that the plaintiff was not entitled to indemnity costs due to the procedural irregularity in the Calderbank offer. Additionally, the court deferred making a costs order pending the resolution of any related foreign litigation. This decision underscored the importance of procedural compliance in making Calderbank offers and the need for a comprehensive assessment of costs in cases involving multiple jurisdictions.