Kelly v Davis (No.2)

The case of Kelly v Davis (No.2) involved a plaintiff who had previously unsuccessfully sued two defendants for defamation. The plaintiff sought an order for partial indemnity of costs from the two defendants, having served Calderbank offers on them. The court was required to determine whether the plaintiff was entitled to such costs under the circumstances of the case. The primary focus of the court was on whether the plaintiff's unsuccessful suit justified the award of partial indemnity costs and whether there was any issue of principle that warranted further examination.

The court considered the principles surrounding Calderbank offers and the circumstances under which partial indemnity costs might be awarded. The court acknowledged that the plaintiff had served valid Calderbank offers and that the defendants had not accepted them, leading to the plaintiff's unsuccessful litigation. The court examined the criteria for granting partial indemnity costs, including whether the plaintiff's offer was reasonable and whether the defendants' rejection of the offer was unjustified. The court concluded that there was no issue of principle that would prevent the award of partial indemnity costs in this case.

In reaching its decision, the court emphasised that the principles governing Calderbank offers and partial indemnity costs were well established and that the circumstances of this case did not warrant a departure from those principles. The court found that the plaintiff's unsuccessful suit and the defendants' rejection of the Calderbank offers justified the award of partial indemnity costs. Consequently, the court ordered that the plaintiff was entitled to partial indemnity of costs from the defendants. The court's decision was clear and aligned with established legal principles, ensuring that the parties understood the basis for the costs award.