In the matter of Hoju Jobs Pty Ltd (No 2)

The case involved a plaintiff, Hoju Jobs Pty Ltd, seeking to recover damages from two defendants, both of whom were represented by the same legal counsel. The plaintiff was successful against only one of the defendants. The matter was heard in the Supreme Court of New South Wales. The plaintiff's case hinged on its failure to accept a compromise offer made by the unsuccessful defendant before the litigation began. The court had to decide whether the plaintiff's unreasonable refusal to accept this offer should affect the costs order.

The court examined the circumstances under which the compromise offer was made and accepted. It considered whether the plaintiff's conduct in rejecting the offer was unreasonable and whether this affected the outcome of the case. The court found no issue of principle that would warrant a departure from the usual rules governing costs in such situations. The court concluded that the plaintiff's unreasonable refusal to accept the compromise offer did not entitle the unsuccessful defendant to costs against the plaintiff.

In its reasoning, the court noted that the plaintiff's unreasonable refusal to accept a genuine compromise offer before the commencement of proceedings was a significant factor. This refusal did not, however, entitle the unsuccessful defendant to costs against the plaintiff. The court determined that the usual rules governing costs should apply. Furthermore, the court addressed the issue of interest under the Civil Procedure Act 2005 (NSW) on the sum payable under the contract ordered to be specifically performed. The court ruled that interest should be calculated from the date of judgment until the date of satisfaction of the judgment sum. This decision ensures that the plaintiff receives appropriate compensation for the delay in payment.