King Network Group Pty Ltd v Club of the Clubs Pty Ltd (No 2)

King Network Group Pty Ltd (the appellant) appealed against a decision of the primary judge concerning a dispute with Club of the Clubs Pty Ltd (the respondent). The appeal concerned the appropriate orders for costs, particularly in light of a Calderbank offer made by the respondent and the fact that the parties were jointly represented.

The primary legal issues before the Court of Appeal were whether the respondent's rejection of the appellant's Calderbank offer was unreasonable, and what principles applied to the costs of jointly represented parties. The Court was required to determine if the Calderbank offer warranted a departure from the usual order that costs follow the event, and how to apportion costs between the appellant and respondent, given their joint representation.

The Court of Appeal found that the respondent's rejection of the Calderbank offer was not unreasonable, and therefore did not warrant a departure from the usual costs order. Regarding the jointly represented parties, the Court applied the principles that where parties are jointly represented, the costs awarded should reflect the benefit derived from that joint representation, and that the court should not penalise a party for acting reasonably in joining in representation. Consequently, the Court ordered that the respondents pay 75% of the appellant's costs of the appeal, and that King Network Group Pty Ltd pay 50% of the respondents' costs of the trial.