In the matter of Wabbits Pty Ltd (No 2)

In the Federal Court of Australia, Wabbits Pty Ltd sought to set aside a statutory demand issued by another party. The dispute centred around the nature of the costs that should be awarded to the defendant in relation to the setting aside of the demand. The defendant had initially set the demand aside on condition that it paid a specific sum to the plaintiff. The plaintiff then applied for costs on an indemnity basis, arguing that the defendant's acceptance of the condition to pay the sum was unreasonable and that the defendant should be liable for the plaintiff's costs on an indemnity basis. The defendant, on the other hand, argued that the costs should be awarded on the ordinary basis, as it had offered to compromise on terms that were more favourable to the plaintiff than the terms of the court's order.

The court needed to determine whether the defendant's offer to compromise was unreasonable, and whether the costs should be awarded on an indemnity or ordinary basis. The court also needed to consider whether the defendant's offer of compromise, which was open for acceptance for just under two hours, was more favourable to the plaintiff than the result of the court's order. The court found that the defendant's offer of compromise was not unreasonable and that the plaintiff was not prejudiced by the defendant's acceptance of the offer. The court also found that the defendant's offer of compromise was more favourable to the plaintiff than the result of the court's order, and that the plaintiff was not entitled to costs on an indemnity basis.

The court held that the defendant's offer of compromise was not unreasonable and that the plaintiff was not prejudiced by the defendant's acceptance of the offer. The court found that the defendant's offer of compromise was more favourable to the plaintiff than the result of the court's order, and that the plaintiff was not entitled to costs on an indemnity basis. The court ordered that the costs of the proceedings be paid on the ordinary basis, and that the plaintiff bear its own costs of the application for indemnity costs. The court also ordered that the defendant bear its own costs of the proceeding up until the time of the defendant's offer of compromise.